Albemarle (NYSE:ALB) has priced its previously announced offering of 40M depositary shares at a public offering price of $50 per share for $2B (upsized from $1.75B).
Underwriters have a 30-day option to purchase up to an additional 6M depositary shares, at the public offering price per share.
Closing date is March 8, 2024.
Net proceeds of ~$1.94B will be used for general corporate purposes, which may include, among other uses, funding growth capital expenditures, such as the construction and expansion of lithium operations in Australia and China that are significantly progressed or near completion, and repaying the Company’s outstanding commercial paper.
Unless earlier converted, each share of the Preferred Stock will automatically convert on or around March 1, 2027 into between 7.6180 and 9.1400 shares of common stock and each depositary share will automatically convert into between 0.3809 and 0.4570 shares of common stock,
Dividends on the preferred stock will be payable on a cumulative basis when, as and if declared by Albemarle’s board of directors (or an authorized committee thereof) at an annual rate of 7.25% on the liquidation preference of $1,000 per share of Preferred Stock (or $50 per Depositary Share).
