Business Briefs: New stock issue cuts Chattanooga-based Dixie Goup's value

Business Briefs: New stock issue cuts Chattanooga-based Dixie Goup's value

May 13th, 2014 by Staff Reports in Business Around the Region

Donna Shook removes used spools of thread from the creeling area at the Dixie Group carpet plant in Eton, Ga.

Photo by Staff File Photo/Times Free Press.

New stock issue cuts Dixie Goup's value

Shares in Dixie Group Inc. fell by $2.13 per share, or more than 16.2 percent, to close at $11 per share on Monday after the Chattanooga-based carpet maker announced plans to issue up to 2.8 million shares of new stock.

Dixie said the issue, which will be managed by Wells Fargo Securities and Raymond James, includes 2.5 million shares to the public and an additional 375,000 shares of common stock for the underwriters to cover over-allotments, if any. The issue could raise more than $25 million for Dixie to help pay for is recent $17.5 million purchase of Atlas Carpet Mills.

But investors were wary about the new issue, driving down shares in Nasdaq trading Monday to the lowest level since last October even as the overall stock market rose to record highs.

TVA to refuel Sequoyah unit

The Tennessee Valley Authority began refueling the Unit 2 reactor at the Sequoyah Nuclear Plant Unit Monday after TVA completed 438 consecutive days of operation at the nuclear unit.

Sequoyah Vice President John Carlin said more than 600 contractor workers will supplement TVA's own staff during the refueling, which occurs about every 18 months. Sequoyah's Unit 1 will continue to generate electricity during the Unit 2 refueling.