Nucor Taps Capital After a Huge Run (NUE)

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Nucor Corporation (NYSE: NUE) is going to pursue a public offering of 25,000,000 shares of common stock and it granted underwriters an over-allotment option of up to an additional 3,750,000 shares.  This offering is expected to close on or around May 29, 2008.

Banc of America, Citigroup, and J.P. Morgan are listed as the joint book-runners for the offering.

Based on today’s closing price, the gross proceeds before fees would be about $2.03 Billion, and the company’s market cap is listed as nearly $23.5 Billion.  Net proceeds from the offering are listed as being for general corporate purposes, including acquisitions, capital expenditures, working capital needs and repayment of debt. 

In addition to this, Nucor intends to raise up to $1 billion in the debt capital markets in the near term, subject to market conditions.

Nucor shares closed down 0.9% in regular trading at $81.32, and shares are down about another 1.7% at $79.92 after-hours.  Its 52-week trading range is $41.62 to $82.40, so the company is capturing what it can at what it has seen as top dollar.  In 2004, this stock traded under $20.00 and traded under $10.00 in 2003.

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Jon C. Ogg
May 19, 2008

Jon Ogg produces and edits the "10 Stocks Under $10" newsletter and he does not own securities in the companies he covers.