Smithfield closes stock offering
September 23, 2009
by Bryan Salvage
SMITHFIELD, VA. — Smithfield Foods Inc. has closed its previously announced underwritten registered public offering of 21,660,649 shares of its common stock at $13.85 per share. The company has also granted the underwriters a 30-day option to purchase up to an additional 3,249,097 shares of common stock to cover over-allotments, if any, in connection with the offering.
Morgan Stanley, Goldman, Sachs & Co., Barclays Capital and J.P. Morgan are the joint book-running managers of the offering.
Net proceeds from the offering will be used for working capital and general corporate purposes, with a goal of continuing to strengthen the company’s balance sheet, which may include the retirement of debt, Smithfield said.