VSE Corporation (VSEC), a leading provider of aftermarket distribution and repair services, has announced the pricing of its underwritten public offering of approximately 2.11 million shares of its common stock at $71.00 per share to the public.
Additionally, VSE has granted the underwriters a 30-day option to purchase up to an extra 316,901 shares of common stock. The offering is anticipated to close on May 17, 2024.
On Tuesday, VSEC's stock closed at $74.37, reflecting a decrease of $1.26 or 1.67%. In after-hours trading, the stock experienced a further decline of $2.60 or 3.50%.
The company estimates net proceeds from this offering will be about $141.0 million, after deducting underwriting discounts, commissions, and excluding estimated offering expenses.
VSE plans to utilize substantially all the net proceeds from the offering to repay outstanding borrowings under its revolving loan facility. This includes borrowings that funded the acquisition of Turbine Controls, Inc., supporting potential future strategic acquisitions, and for general corporate purposes.