Primoris Services Corporation Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Primoris Services Corporation (NASDAQ: PRIM) announced a public offering of 4,500,000 shares of common stock at $35.00 per share, aiming for net proceeds of approximately $150 million. The offering, which includes a 30-day option for underwriters to purchase an additional 675,000 shares, is set to close on March 22, 2021. Proceeds will be used for general corporate purposes, particularly to repay borrowings under its credit facility. Goldman Sachs, Morgan Stanley, and UBS are managing the offering.

Positive

• Net proceeds of approximately $150 million will strengthen the company's financial position.
• Funds will be used to repay a portion of outstanding borrowings, reducing debt.

Negative

• Issuing 4,500,000 shares may lead to shareholder dilution.
• The public offering could trigger negative market reactions due to increased share supply.

DALLAS, March 18, 2021 (GLOBE NEWSWIRE) -- Primoris Services Corporation (NASDAQ Global Select: PRIM) (“Primoris” or “Company”), a leading provider of specialty contracting services in North America, today announced the pricing of its previously announced underwritten public offering of 4,500,000 shares of its common stock at a public offering price of $35.00 per share (the “Offering”), for net proceeds of approximately $150 million, after underwriting discount but before estimated offering expenses payable by the Company. The Company has also granted the underwriters a 30-day option to purchase up to an additional 675,000 shares of the Company’s common stock at the public offering price. The Offering is expected to close on March 22, 2021, subject to customary closing conditions.

The Company intends to use the net proceeds from this offering for general corporate purposes, including to repay a portion of the borrowings outstanding under its credit facility.

Goldman Sachs & Co. LLC, Morgan Stanley, and UBS Investment Bank are acting as joint book-running managers for the Offering.

This Offering is being made pursuant to an effective shelf registration statement and prospectus and a related preliminary prospectus supplement filed by the Company with the Securities and Exchange Commission (“SEC”). This press release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these 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 any such state or jurisdiction. A preliminary prospectus supplement relating to, and describing the terms of, the Offering has been filed with the SEC and is available on the SEC’s website at www.sec.gov.

Copies of the preliminary prospectus supplement, accompanying base prospectus and, when available, prospectus supplement relating to the offering may be obtained free of charge on the Securities and Exchange Commission’s (the “SEC”) website at www.sec.gov or by sending a request to: Goldman Sachs & Co. LLC by mail at 200 West Street, New York, NY 10282, Attention: Prospectus Department, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; and UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, by telephone at (888) 827-7275 or by email at ol-prospectus-request@ubs.com.

The shares of common stock will be offered and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC. This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering is being made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”).

ABOUT PRIMORIS
Founded in 1960, Primoris is one of the leading providers of specialty contracting services operating throughout the United States and Canada. Primoris provides a wide range of specialty construction services, fabrication, maintenance and engineering services to a diversified and well-tenured blue-chip client base.

FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including the Company’s proposed public offering and the use of proceeds from the proposed public offering. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “potential”, “predicts”, “projects”, “should”, “will”, “would” or similar expressions. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of regulation and the economy, generally. Forward-looking statements inherently involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results may differ materially as a result of a number of factors, including, among other things, the risks described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020, and our other filings with the U.S. Securities and Exchange Commission (“SEC”). Such filings are available on the SEC’s website at www.sec.gov. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

For additional information, contact:

Brook Wootton
Vice President, Investor Relations
Primoris Services Corporation, 214-545-6773
bwootton@prim.com

 

FAQ

What is the stock offering price for Primoris Services Corporation (PRIM)?

The stock offering price is set at $35.00 per share.

How many shares is Primoris offering in the public offering?

Primoris is offering 4,500,000 shares in the public offering.

What is the purpose of the funds raised from the stock offering by PRIM?

The funds will be used for general corporate purposes, including repaying borrowings under its credit facility.

When is the expected closing date of Primoris' stock offering?

The expected closing date for the stock offering is March 22, 2021.

Who are the underwriters for the Primoris Services Corporation offering?

The underwriters are Goldman Sachs, Morgan Stanley, and UBS Investment Bank.