Dixie Group to issue more stock

Dixie Group to issue more stock

May 12th, 2014 by Dave Flessner in Local - Breaking News

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

Donna Shook removes used spools of thread from...

Photo by Staff File Photo /Times Free Press.

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.