The Dixie Group announced today it will issue another 2.5 million share of stock to raise more than $30 million, in part, to help pay for its recent $17.5 million purchase of Atlas Carpet Mills.
The Chattanooga-based carpet maker plans to make a public offering, jointly managed by Wells Fargo Securities and Raymond James. Dixie currently has more than 12.5 million shares of stock outstanding so the new issue will increase the number of outstanding shares by nearly 20 percent.
In connection with the offering, Dixie intends to grant the underwriters an option for 30 days to purchase up to an additional 375,000 shares of common stock to cover over-allotments, if any.
"The company expects to use the net proceeds from this offering for general corporate purposes and to reduce the balance under its revolving credit facility, which includes borrowings associated with the recent acquisition of Atlas Carpet Mills," DIxie said in a statement today.
Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...