Cree offers 11 million shares at $35.50
Cree will use the $390.5 million proceeds of its share issue for capital expenditures and potential strategic investments.
|Chart 1: one-week view|
The company, traded on the Nasdaq under the symbol CREE, then announced on September 10 that the shares would be priced at $35.50 per share for gross proceeds of $390.5 million.
The company’s share price recently peaked at $38.97 (see chart 1), having risen from 52-week low of $12.57 in December 2008 (chart 2).
Cree intends to use the proceeds for anticipated capital expenditures of approximately $150 million in its (current) fiscal year 2010 and additional future capital expenditure needs. The remainder will be used for general corporate purposes, including working capital and potential strategic investments.
|Chart 2: one-year view|
J.P. Morgan Securities, Inc. was the sole book-running manager for the offering, Bank of America Merrill Lynch was the lead manager, and Piper Jaffray, Morgan Keegan, Oppenheimer and America’s Growth Capital acted as co-managers.