The company said it has agreed to sell 20 million shares of its common stock at a public offering price of $12.75 per share and has granted the underwriters an option to purchase up to an additional 3 million shares of common stock on the same terms and conditions to cover over-allotments, if any. Tyson also said the pricing of its public offering of $450 million aggregate principal amount of 3.25% convertible senior notes. Tyson has granted the underwriters an option to purchase up to an additional $67.5 million in aggregate principal amount of convertible senior notes on the same terms and conditions to cover over-allotments, if any.
An entity controlled by Don Tyson, the company’s former chairman and current director, will be purchasing 3 million shares in the offering, Tyson said.
The company said it intends to use the net proceeds from the common stock offering and the convertible senior notes offering toward the repayment of borrowings under Tyson’s accounts receivable securitization and for other general corporate purposes which may include, without limitation, acquisitions, strategic investments and initiatives to grow its business. The two offerings are not dependent on each other.
Source: Tyson Foods Inc.
