Steel Technologies Prices Offering of Common Stock
03/26/2004 -
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Steel Technologies
Prices
Offering of Common Stock
March 26, 2004 — Steel Technologies Inc. has priced an underwritten public offering of 2,700,000 shares of common stock at a price of $17.25 per share.
Of the 2,700,000 shares offered, 2,500,000 are being sold by the company. The offering is expected to result in net proceeds to the company of approximately $40.6 million. The remaining 200,000 shares are offered by selling shareholders. Steel Technologies will not receive any portion of the proceeds from the sales by the selling shareholders.
Steel Technologies has granted the underwriters an option to purchase up to 405,000 additional shares to cover over-allotments. CIBC World Markets, McDonald Investments Inc., SunTrust Robinson Humphrey, and BB&T Capital Markets served as underwriters for the offering.
Steel Technologies intends to use the net proceeds from this offering for its expansion activities, including possible acquisitions, facility expansions, greenfield construction, development of its joint venture operations, and working capital to support the company's growth. Pending deployment for these purposes, Steel Technologies will use the net proceeds to repay a portion of the outstanding indebtedness under its existing credit facility.
Steel Technologies cautions that this announcement does not constitute an offer to sell or the solicitation of an offer to buy, and that there shall not be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for a wide range of industries and applications. The company has 21 facilities, including its joint-venture operations, located throughout the United States and Mexico.
Copies of the final prospectus may be obtained from the offices of CIBC World Markets Corp., 417 Fifth Avenue, New York, New York 10016, facsimile (212) 667-6136, email useprospectus@us.cibc.com.
