Poultry processor Sanderson Farms plans to offer 2 million shares of common stock to help finance the construction of its new poultry complex in Kinston, N.C., and a potential new large-bird complex near Goldsboro, N.C. The proceeds could also be used to reduce debt, to invest in cash and cash equivalents, for general corporate purposes and as working capital.
Sanderson Farms said in a press release that it intends to grant underwriters a 30-day option to purchase up to an additional 300,000 shares of common stock. Morgan Stanley and J.P. Morgan are the joint bookrunning managers of the offering, and BMO Capital Markets and Stephens Inc. are co-managers.
Sanderson Farms has not announced pricing. It has filed a prospectus supplement relating to the offering with the Securities and Exchange Commission.