Stock Offerings: Federal Signal
Federal Signal said it priced an offering of 10.5 million shares at $6.25 per share, which will result in net proceeds of $61.7 million. The offering price represents a 3.3% discount to Thursday's closing price. Underwriters were granted a 30-day option to purchase up to 1.57 million additional shares to cover overallotments, if any.
Federal Signal said net proceeds will be used to repay indebtedness under a revolving credit facility associated with the recent acquisitions of Sirit and VESystems.
Federal Signal shares were down 1.7% to $6.35. Volume in the first few minutes of trading topped 400,000 shares, quickly eclipsing the average daily volume of 322,000 shares.Elsewhere, The Greenbrier Companies (GBX) shares also traded lower after railroad freight car equipment maker priced an offering of 4 million common shares at $12.50 per share. Underwriters were granted an option for 30 days to purchase up to 600,000 additional shares to cover overallotments, if any. Greenbrier shares were sliding 3.2% to $13.20. Meanwhile, several companies filed shelf registrations with the Securities and Exchange Commission for mixed securities offerings. PowerSecure International (POWR) said it may offer, from time to time, up to $70 million of an indeterminate number of common shares, preferred stock and warrants. Additionally, selling stockholders may offer up to approximately 1.02 million common shares, although PowerSecure will not receive any proceeds from the sales by selling stockholders. PowerSecure shares were down 6.7% to $9.19. The Great Atlantic & Pacific Tea Company (GAP) said it may sell up to $500 million of any combination of common shares, debt securities or preferred stock in one or more offerings Great A&P Tea shares were rising 1.3% to $6.47. Elsewhere, DXP Enterprises (DXPE) filed a $75 million mixed securities shelf offering late Thursday. DXP shares were down 3.6% to $16.18. Echelon (ELON) filed for a $200 million mixed shelf offering. The filing came as Echelon said first-quarter revenue fell to $18.1 million from $38.8 million in the fourth quarter and $18.2 million in the year-ago quarter. Echelon said it net loss widened to 26 cents a share in the first quarter from a loss of 9 cents a share in the fourth quarter. Echelon shares were dropping by 12.6% to $8.13. -- Written by Robert Holmes in Boston. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.
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