Ferro Corp prices offering of 35.75m common shares

Technology-based performance materials company Ferro Corp (NYSE:FOE) said on Tuesday that the company has priced an offering of 35,750,000 shares of common stock at USD5.60 per share, subject to customary closing conditions. A In addition, the underwriters have been granted a 30-day over-allotment option to purchase up to an additional 5,362,500 shares of common stock at the public offering price, less the underwriting discount, to cover over-allotments, if any. A Net proceeds of approximately USD186.9m are expected from this offering (assuming no exercise of the underwriters' over-allotment option), after deducting underwriting discounts and estimated offering expenses payable by Ferro.

The company plans to use up to USD50m of the net proceeds to pay the costs associated with its restructuring programmes and strategic initiatives. The remaining will be used to reduce borrowings under its credit facility and to pay fees and expenses in connection with the amendment and restatement of such facility. A Credit Suisse Securities (USA) LLC and J.P. Morgan Securities Inc are acting as joint book-running managers for the offering.

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