LAUREL — Sanderson Farms Inc. has closed its underwritten registered public offering of 2.3 million shares of its common stock, including 300,000 shares issued in connection with the underwriters exercise of their over-allotment option following the pricing of the offering. The offering price to the public was $53 per share.
Sanderson intends to use the net proceeds from the offering, together with other funds, to finance the construction of its new retail poultry complex in Kinston, N.C., and a potential new big bird poultry complex to be located near Goldsboro, N.C.. Pending such uses, net proceeds from the offering may be used to reduce indebtedness and to invest in cash and cash equivalents. The company may use some of the invested proceeds as working capital and for general corporate purposes.
Morgan Stanley and J.P. Morgan acted as the joint book-running managers of the offering, and BMO Capital Markets and Stephens Inc. were co-managers.