Ecovyst Announces Secondary Offering of 16,000,000 Shares of Common Stock by Selling Stockholders and Repurchase of Common Stock
Ecovyst Inc. (NYSE: ECVT) announced the sale of 16 million shares by funds associated with CCMP Capital Advisors. The Selling Stockholders have granted a 30-day option for underwriters to buy an additional 2.4 million shares. The company plans to repurchase 8 million shares from the underwriters at the offering price, funded by cash on hand and operations. This transaction is expected to close simultaneously with the offering, subject to market conditions. The total offering is part of a shelf registration statement filed with the SEC.
- Ecovyst intends to repurchase 8 million shares, potentially supporting share price.
- The offering could provide liquidity to existing shareholders.
- Selling 16 million shares may dilute existing shareholder value.
- The company is not raising new capital through this offering.
The Selling Stockholders will receive all of the net proceeds from the Offering. No shares are being sold by the Company.
Subject to the completion of the Offering, the Company intends to repurchase from the underwriters 8,000,000 shares of the common stock being sold in the Offering at a price per share equal to the price per share paid by the underwriters to the Selling Stockholders in the Offering. The Company intends to fund the share repurchase with cash on hand and cash from operations. The closing of the share repurchase is conditioned on, and expected to occur simultaneously with, the closing of the Offering. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed.
An automatic shelf registration statement (including a prospectus) relating to the Offering was filed with the
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date.
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Note on Forward-Looking Statements
This press release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, including risks and uncertainties relating to the consummation of the proposed Offering by the Selling Stockholders, the repurchase of common stock, and the risks identified, or incorporated by reference, in the prospectus supplement or accompanying prospectus.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221114006087/en/
Investors:
Gene.Shiels@ecovyst.com
Source:
FAQ
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