Synalloy Prices Upsized Underwritten Public Offering At Of $15.75/shr

(RTTNews) - Synalloy Corp. (SYNL) announced that it has upsized its underwritten public offering to 2.00 million shares of its common stock from 1.50 million shares and priced the offering at a price of $15.75 per share.

The underwriters have a 30-day option to purchase up to an additional 300,000 shares of common stock from Synalloy at the public offering price (less the underwriting discount) to cover over-allotments, if any.

The company expects that net proceeds to the company from the sale of 2.00 million shares, after underwriting discounts and estimated expenses, to be approximately $29.5 million.

The company stated that it intends to use the net proceeds from the offering to invest approximately $3.5 million in new equipment for its CRI Tolling facility, to invest approximately $2.0 million in new equipment for its fabrication facilities, and to pay down the senior indebtedness outstanding under a line of credit that it has through a loan agreement. The offering is expected to close on September 30, 2013, subject to customary closing conditions.