CHARLOTTE, N.C. - Albemarle Corporation (NYSE: NYSE:ALB), a company specializing in essential elements for various industries, announced today the launch of a public offering of depositary shares, with each share representing a 1/20th interest in its Series A Mandatory Convertible Preferred Stock.
The offering is valued at $1.75 billion, with an additional option for underwriters to purchase up to $262.5 million more in depositary shares within 30 days.
The net proceeds from the offering are earmarked for general corporate purposes. Specifically, Albemarle plans to allocate funds towards growth capital expenditures, such as the expansion of lithium operations in Australia and China, which are either nearing completion or significantly underway. The company also intends to use part of the proceeds to repay outstanding commercial paper.
Holders of the depositary shares will have rights proportionate to those of the Preferred Stock, including dividends, conversion, and voting rights, as set out in a deposit agreement. Each share of Preferred Stock, unless converted earlier, will automatically become shares of common stock on or around March 1, 2027, based on a predetermined conversion rate.
Currently, there is no public market for these depositary shares or the Preferred Stock. However, Albemarle aims to list the depositary shares on the New York Stock Exchange under the symbol "ALB PR A."
The offering is being managed by J.P. Morgan and BofA Securities as joint book-running managers. Albemarle has filed the necessary documentation with the Securities and Exchange Commission (SEC), including a shelf registration statement and related preliminary prospectus supplement.
This press release serves informational purposes and is not an offer to sell or a solicitation to buy the depositary shares. The offering is subject to market conditions, and no sale will occur in jurisdictions where it would be unlawful.
The information in this article is based on a press release statement from Albemarle Corporation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.