CSW Industrials Announces Public Offering of Common Stock
CSW Industrials (CSWI) has announced a public offering of 1,000,000 shares of common stock, with an option for underwriters to purchase an additional 150,000 shares. The company plans to use the net proceeds to repay outstanding debt and for general corporate purposes, including potential future acquisitions. J.P. Morgan, Goldman Sachs & Co. , and Truist Securities are acting as lead book-running managers. The offering is subject to market conditions, and there's no guarantee of completion or final terms. The shares will be offered under the company's shelf registration statement on Form S-3, which became effective on September 4, 2024.
CSW Industrials (CSWI) ha annunciato un offerta pubblica di 1.000.000 azioni di azioni ordinarie, con un'opzione per i sottoscrittori di acquistare ulteriori 150.000 azioni. L'azienda intende utilizzare i proventi netti per ripagare il debito in essere e per scopi aziendali generali, comprese potenziali acquisizioni future. J.P. Morgan, Goldman Sachs & Co. e Truist Securities stanno agendo come gestori principali dell'offerta. L'offerta è soggetta a condizioni di mercato, e non c'è garanzia di completamento o termini finali. Le azioni saranno offerte secondo la dichiarazione di registrazione shelf della società sul Modulo S-3, che è diventata efficace il 4 settembre 2024.
CSW Industrials (CSWI) ha anunciado una oferta pública de 1,000,000 de acciones de acciones ordinarias, con una opción para que los suscriptores compren 150,000 acciones adicionales. La empresa planea utilizar los ingresos netos para pagar deudas pendientes y para fines corporativos generales, incluidas posibles adquisiciones futuras. J.P. Morgan, Goldman Sachs & Co. y Truist Securities están actuando como gestores principales de la oferta. La oferta está sujeta a condiciones del mercado, y no hay garantía de que se complete o de que haya términos finales. Las acciones se ofrecerán bajo la declaración de registro en estante de la empresa en el Formulario S-3, que se volvió efectiva el 4 de septiembre de 2024.
CSW Industrials (CSWI)는 1,000,000주의 보통주 공개 발행을 발표하였으며, 인수자가 추가로 150,000주를 구매할 수 있는 옵션이 있습니다. 이 회사는 순수익을 기존 부채 상환 및 향후 잠재적인 인수와 같은 일반 기업 용도로 사용할 계획입니다. J.P. Morgan, Goldman Sachs & Co., Truist Securities가 주관 관리자로 활동하고 있습니다. 이 공모는 시장 조건에 따라 다르며, 완료 또는 최종 조건에 대한 보장은 없습니다. 주식은 2024년 9월 4일에 발효된 회사의 S-3 양식에 대한 선반 등록 명세서에 따라 제공됩니다.
CSW Industrials (CSWI) a annoncé une offre publique de 1.000.000 d'actions ordinaires, avec une option pour les souscripteurs d'acheter 150.000 actions supplémentaires. L'entreprise prévoit d'utiliser les produits nets pour rembourser des dettes existantes et pour des fins d'entreprise générales, y compris d'éventuelles acquisitions futures. J.P. Morgan, Goldman Sachs & Co. et Truist Securities agissent en tant que principaux gestionnaires de l'offre. L'offre est soumise aux conditions du marché, et il n'y a aucune garantie de réalisation ou de conditions finales. Les actions seront proposées dans le cadre de la déclaration d'enregistrement de shelf de la société sur le formulaire S-3, qui est entrée en vigueur le 4 septembre 2024.
CSW Industrials (CSWI) hat eine öffentliche Angebotsübermittlung von 1.000.000 Aktien von Stammaktien angekündigt, mit der Option für die Underwriter, zusätzliche 150.000 Aktien zu erwerben. Das Unternehmen plant, die netto Einnahmen zur Tilgung ausstehender Schulden sowie für allgemeine Unternehmenszwecke, einschließlich potenzieller zukünftiger Übernahmen, zu verwenden. J.P. Morgan, Goldman Sachs & Co. und Truist Securities fungieren als führende Buchmanager. Das Angebot unterliegt den Marktbedingungen, und es gibt keine Garantie für die Durchführung oder endgültige Bedingungen. Die Aktien werden im Rahmen der Regalregistrierungsanmeldung des Unternehmens auf Formular S-3 angeboten, die am 4. September 2024 wirksam wurde.
- Potential to reduce outstanding debt, improving the company's financial position
- Opportunity for funding future acquisitions, potentially driving growth
- Involvement of reputable financial institutions as lead book-running managers
- Potential dilution of existing shareholders' ownership
- Increased share count may negatively impact earnings per share
- Market uncertainty regarding the offering's completion and final terms
Insights
CSW Industrials' public offering of 1,000,000 shares with an option for an additional 150,000 shares is a significant move that could impact the company's financial structure. The primary goal to repay outstanding debt suggests a strategic effort to improve the balance sheet. This could potentially lead to reduced interest expenses and improved financial flexibility in the long term.
However, investors should note that this offering will likely result in dilution of existing shareholders' ownership. The market's reaction to this news will be important to watch, as it may affect the stock price in the short term. The company's mention of using proceeds for potential future acquisitions indicates a growth-oriented strategy, which could be positive if executed well.
The involvement of major underwriters like J.P. Morgan and Goldman Sachs lends credibility to the offering, potentially attracting institutional investors. Overall, while the offering may have short-term dilutive effects, it could strengthen CSW Industrials' financial position for future growth opportunities.
This public offering by CSW Industrials comes at an interesting time in the market. With interest rates still relatively high, the company's move to reduce debt is prudent. It could improve their credit profile and potentially lead to better borrowing terms in the future.
The offering's success will largely depend on investor appetite for industrial stocks. CSW Industrials' ability to articulate a clear growth strategy during their roadshow will be crucial. The mention of potential acquisitions suggests the company sees opportunities in the current market, which could be appealing to growth-focused investors.
However, the timing of the offering is worth noting. If the market perceives this as a desperate move for capital, it could negatively impact the stock price. Conversely, if viewed as a proactive step towards growth, it might be received positively. Investors should closely monitor the pricing of the offering and any subsequent market reaction to gauge overall sentiment.
DALLAS, Sept. 04, 2024 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (Nasdaq: CSWI), announced that it has commenced an underwritten public offering of 1,000,000 shares of common stock. In connection with this offering, the Company expects to grant the underwriters a 30-day option to purchase up to 150,000 additional shares at the public offering price, less the underwriting discounts and commissions. The offering is subject to market and other conditions, and there can be no assurances as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
The Company intends to use the net proceeds to repay outstanding debt, with the remainder for general corporate purposes, including potential future acquisitions. J.P. Morgan, Goldman Sachs & Co. LLC and Truist Securities are acting as lead book-running managers. Wells Fargo Securities and Citigroup are acting as joint book-running managers. CJS Securities, Comerica Securities, TPH&Co., the energy business of Perella Weinberg Partners and Zions Capital Markets are acting as co-managers of the offering.
The shares described above are being offered by the Company pursuant to the Company’s shelf registration statement on Form S-3, including a base prospectus, that was previously filed by the Company with the Securities and Exchange Commission (“SEC”) and that became automatically effective on September 4, 2024. The offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus, which are available for free on the SEC’s website located at http://www.sec.gov. Alternatively, the underwriters will arrange to send you the preliminary prospectus supplement and related base prospectus if you request them by contacting: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any shares of the Company’s common stock or any other security, nor shall there be any offer or sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Safe Harbor Statement
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words such as “expects” or “intends” or other similar expressions are intended to identify forward-looking statements. Such statements relate to the proposed public offering and the anticipated use of the net proceeds from the offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all.
The forward-looking statements included in this press release are based on our current expectations, projections, estimates, and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.
About CSW Industrials
CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. CSWI provides niche, value-added products with two essential commonalities: performance and reliability. The primary end markets we serve with our well-known brands include: HVAC/R, plumbing, general industrial, architecturally-specified building products, energy, mining, and rail transportation.
Investor Relations
Alexa Huerta
Vice President, Investor Relations, & Treasurer
214-489-7113
alexa.huerta@cswindustrials.com
FAQ
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