Maverick Tube (NYSE:MVK)
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From Jul 2019 to Jul 2024
Maverick Tube Corporation (NYSE:MVK) announced today
that Morgan Stanley, the initial purchaser of its previously announced
private offering of $220 million aggregate principal amount of 1.875%
convertible senior subordinated notes due 2025, has exercised in full
its overallotment option to purchase $30 million of additional notes.
The issuance of the additional notes closed today.
In connection with both the original $220 million issuance and the
additional $30 million issuance, Maverick entered into convertible
note hedge and warrant transactions in respect of its common stock
with an affiliate of the initial purchaser of the notes. These
transactions are intended to reduce the potential dilution upon future
conversion of the additional notes by providing Maverick with the
option, subject to certain exceptions, to acquire shares which offset
the delivery of newly issued shares upon settlement of conversions of
the notes. This has the economic effect to Maverick of increasing the
conversion price of the notes to $52.00 per share.
Maverick also announced that it has committed approximately $190.9
million of the net proceeds of the $250 million offering to repurchase
approximately 5.6 million shares of Maverick common stock in
connection with the offering of the notes and in open market purchases
through November 18. Maverick also has used approximately $29.3
million of the net proceeds of the offering to enter into convertible
note hedge and warrant transactions. Maverick intends to use the
remainder of the net proceeds of the offering to repurchase additional
shares of Maverick common stock in the open market from time to time.
Maverick Tube Corporation is a St. Louis, Missouri based
manufacturer of welded tubular steel products used in the oil and
natural gas industry, as well as industrial tubing products (steel
electrical conduit, standard pipe, pipe piling, and mechanical tubing)
used in various industrial applications.
This news release may contain forward-looking information that is
based on assumptions that are subject to numerous business risks, many
of which are beyond the control of the Company. There is no assurance
that such assumptions will prove to be accurate. Actual results may
differ from these forward-looking statements due to numerous factors,
including those described under "Risk Factors" and elsewhere in
Maverick's Form 10-K for its year ended December 31, 2004.