RBC Bearings slides on planned capital raise to fund Dodge deal

RBC Bearings

21/09/2021 14:13

** RBC Bearings Inc  ROLL.O  shares down ~8% at $198.50
premarket as co plans capital raise to fund acquisition
    ** Precision bearings maker late Mon launched concurrent
public offerings of 3 mln shares and $400 mln 3-yr mandatory
convertible preferred stock  urn:newsml:reuters.com:*:nBw9Z8tdma
    ** ROLL could raise ~$1 bln based on stock's last close of
$215.55
    ** Co to use net proceeds from offerings to fund cash
purchase price for pending acquisition of Dodge, power
transmission unit of Swiss engineering firm ABB  ABBN.S 
    ** ROLL shares on Jul 26 surged as high as $250.52, from
prior session close of $206.51, after co announced $2.9 bln buy
of Dodge  urn:newsml:reuters.com:*:nL4N2P23DJ  urn:newsml:reuters.com:*:nL8N2P23JA
    ** Goldman Sachs and Wells, along with BofA, Citigroup and
Truist, leading the offerings, slated to price Tues after market
close
    ** ROLL shares have risen 73% over the past year and have
~$5.5 bln market cap, per Refinitiv data

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))