Susser Holdings Corporation (NASDAQ: SUSS) has been soft despite a much more positive overall stock market after Wednesday’s rally. The reason is because of a pending secondary offering. The company operates convenience stores and distributes motor fuels in Texas, New Mexico, Oklahoma, and Louisiana.
Investors should soon see the pricing of approximately 3.5 million shares of common stock, and the underwriters will get an overallotment option of up to 525,000 additional shares. BofA Merrill Lynch is the book-running manager, and other underwriters in the syndicate are BMO Capital Markets, Morgan Keegan, RBC Capital Markets, Wells Fargo, Imperial Capital, and Sidoti & Company.
Susser’s filing shows that the proceeds are for growth capital for new store development; and it also gave the “general corporate purposes” line to include opportunistic debt reduction, from time to time, based on market conditions.
Susser has a market cap of only $375 million and investors need to consider one thing here. This is a company that is grossly unheard of by most investors in the country and it is not a widely followed stock by analysts. About a month after this secondary it is likely that many analysts at firms in the underwriting group will be issuing new reports.
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