Seeking Alpha

GT Advanced launches stock/convertible debt offering, shares -4.1% AH

  • GT Advanced (GTAT) is issuing $125M worth of convertible senior notes due 2020, and 12M shares (worth $114M at current levels). Underwriters will have overallotment options to purchase another $18.75M in debt and 1.8M shares. (PR)
  • GT only says it will use the proceeds for "working capital and general corporate purposes, which may include the acquisition of companies or businesses and capital expenditures."
  • But it's hard to overlook the fact the offering follow GT's massive sapphire supply deal with Apple, which calls on GT to install and run sapphire furnaces at an Apple facility. Apple is providing GT with a $578M prepayment as part of that deal.
  • GT ended Q3 with $258.5M in cash/equivalents, and over $252M in debt.
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Comments (3)
  • dknow
    , contributor
    Comments (57) | Send Message
     
    good move! the Company now has the capital to fire on all cylinders before the grand acceleration. I was worried that the other burgeoning markets GTAT already leads in could get sidetracked by the Mesa plant opportunity. Right thing to do at the right time!
    3 Dec 2013, 08:58 AM Reply Like
  • ahhnjo
    , contributor
    Comments (4) | Send Message
     
    Yeah great, I just lost 6.7 percent of my investment.
    3 Dec 2013, 08:48 PM Reply Like
  • dknow
    , contributor
    Comments (57) | Send Message
     
    only if you sell...i don't recommend it.
    4 Dec 2013, 10:44 AM Reply Like
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