Shares of PW Eagle(PWEI Quote) were among the Nasdaq's losers Wednesday, falling 8% after the maker of PVC pipe products priced a stock offering at a significant discount to its Tuesday closing price.
The company agreed to sell 1 million shares to 10 institutional investors for $18.75 apiece, representing a 22% discount to Tuesday's closing price of $24.05. PW Eagle, which expects to receive proceeds of about $17.5 million from the sale, plans to use proceeds from the offering to deleverage its balance sheet. The company also, as part of the stock sale, issued warrants to buy an additional 300,000 shares. The warrants are exercisable at $27 a share until 2010.
As a result of the increase in shares, PW Eagle now sees fourth-quarter earnings of at least $3.55 a share. The company continues to expect full-year earnings of at least $4.50 a share. Shares were trading down $1.87 to $22.18. ...
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