Deal will fund working capital, debt repayment and corporate purposes
By Devika Patel
Knoxville, Tenn., May 4 – Sterling Construction Co., Inc. said on Tuesday that it priced an $18 million public sale of stock with a $2.7 million greenshoe. The offering was announced on Monday.
The company will sell 4.5 million common shares at $4.00 per share. The price per share reflects a 13.04% discount to the May 2 closing share price of $4.60.
Chief executive officer Paul Varello plans to participate for $500,000.
D.A. Davidson & Co. will be the lead managing underwriter.
Proceeds will be used for working capital, to repay debt under the revolving loan portion of the company’s equipment-based credit facility and for general corporate purposes.
Sterling is a heavy civil construction company based in The Woodlands, Texas.
| Issuer: | Sterling Construction Co., Inc.
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| Issue: | Common stock
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| Amount: | $18 million
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| Greenshoe: | $2.7 million, or 675,000 shares
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| Shares: | 4.5 million
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| Price: | $4.00
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| Warrants: | No
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| Underwriter: | D.A. Davidson & Co.
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| Investor: | Paul Varello (for $500,000)
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| Announcement date: | May 2
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| Pricing date: | May 3
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| Stock symbol: | Nasdaq: STRL
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| Stock price: | $4.60 at close May 2
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| Market capitalization: | $86.99 million
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