13.03.2005

JLG raises its share offer

JLG Industries, Inc. has issued the pricing for its previously announced underwritten public offering of common stock and increased the volume from 4.7 million to five million shares. The price has been set at $21.97 per share raising almost $110 million gross.

The $21.97 is a small premium on the average price for last week, but trading on Friday saw JLG stock jump to $23.46 a new record.

JLG intends to use approximately $68.1 million of the proceeds from the offering to redeem $61.25 million in principal amount of its outstanding 8 3/8 percent Senior Subordinated Notes due 2012 and to use the balance for general corporate purposes. As with the earlier announcement JLG reserves the right to issue a further 750,000 shares to the underwriters to cover any over allotments,(see JLG to sell shares) click here

Vertikal Comment

JLG have been very timely with this public offering and will benefit from the strong improvement in its share price since late February when it announced its second quarter earnings following dire first quarter numbers. The price began its rise from around $16/17 a share on or around February 22nd to over $21 last week topping at over $23 on Friday.

With a rising market and the scope for significant market share gains possible in Europe for all of its product ranges, the future prospects are potentially very bright.