Tyson priced 23,810,000 shares of Class A common stock at $37.80 a share and 30 million of its 4.75% tangible equity units at $50 each. These two offerings are separate.
The common stock offering includes a 30-day option for underwriters to purchase up to an additional 3,571,500 shares. The company expects net proceeds from this offering of $873 million, or $1.004 billion if underwriters exercise their full option. Tyson expects net proceeds of $1.454 billion from the equity units offering. The company plans to use these proceeds to help fund its acquisition of Hillshire Brands (HSH).
The stock was down 1.91% to $37.47 at 10:17 a.m. Nearly 12 million shares had changed hands, compared to the average volume of 4,609,930.
Separately, TheStreet Ratings team rates TYSON FOODS INC as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TYSON FOODS INC (TSN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, attractive valuation levels and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins."