Albemarle Corporation (NYSE: ALB) has announced an upsize and pricing of a public offering of depositary shares, representing a 1/20th interest in a share of series A mandatory convertible preferred stock of the company. The offering was priced at $50 per share, totaling $2.0 billion of depositary shares, reflecting an increase from the previously announced $1.75 billion offering.
The net proceeds from the offering are expected to be approximately $1.94 billion, which will be used for general corporate purposes, including funding growth capital expenditures such as the construction and expansion of lithium operations in Australia and China, as well as repaying the company’s outstanding commercial paper.
The depositary shares will entitle holders to a proportional fractional interest in the rights and preferences of the preferred stock, including conversion, dividend, liquidation, and voting rights. Each share of the preferred stock will automatically convert into between 7.6180 and 9.1400 shares of common stock of the company on or around March 1, 2027.
The annual rate of dividends on the preferred stock is set at 7.25% on the liquidation preference of $1,000 per share of preferred stock, with dividends payable on a cumulative basis when declared by Albemarle’s board of directors. The company has applied to list the depositary shares on the New York Stock Exchange under the symbol “ALB PR A.”
The joint book-running managers for the offering are J.P. Morgan and BofA Securities, with HSBC, Mizuho, Santander, Jefferies, and Truist Securities acting as bookrunners, and Goldman Sachs & Co. LLC, MUFG, US Bancorp, Loop Capital Markets, and Siebert Williams Shank as co-managers.
Albemarle Corporation has filed a shelf registration statement with the Securities and Exchange Commission for the offering. The company's stock is listed on the NYSE under the ticker symbol "ALB."
Albemarle Corporation is a global leader in providing essential elements for mobility, energy, connectivity, and health, with a focus on transforming essential resources into critical ingredients for various industries. Check out the company's full 8-K submission here.
