SPARTANBURG, S.C., Sept. 25, 2013 (GLOBE NEWSWIRE) -- Synalloy Corporation (Nasdaq:SYNL) today announced that it has upsized its previously announced underwritten public offering from 1,500,000 to 2,000,000 shares of its common stock and priced the offering at a price of $15.75 per share. The underwriters have a 30-day option to purchase up to an additional 300,000 shares of common stock from Synalloy at the public offering price (less the underwriting discount) to cover over-allotments, if any.
Net proceeds to Synalloy from the sale of 2,000,000 shares, after underwriting discounts and estimated expenses, are expected to be approximately $29.5 million. We intend to use the net proceeds from the offering to invest approximately $3.5 million in new equipment for our CRI Tolling facility, to invest approximately $2.0 million in new equipment for our fabrication facilities, and to pay down the senior indebtedness outstanding under a line of credit that we have through a loan agreement. The offering is expected to close on September 30, 2013, subject to customary closing conditions.
Sterne, Agee & Leach, Inc. and BB&T Capital Markets are acting as joint book-running managers for the offering. When available, copies of the prospectus supplement and related base prospectus for the offering may be obtained on the website of the Securities and Exchange Commission, http://www.sec.gov , or from Sterne, Agee & Leach, Inc., Prospectus Department, 277 Park Avenue, 24th Floor, New York, NY 10172, phone: 212-338-4708, fax: 205-414-6373, email: firstname.lastname@example.org.The common stock will be issued pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.