Seeking Alpha

U.S. Silica in 4.5M-share secondary offering, -3.5% AH

  • U.S. Silica (SLCA) -3.5% AH after announcing a public offering of more than 4.5M common shares by selling shareholder GGC USS Holdings, an affiliate of Golden Gate Capital.
  • SLCA will receive no proceeds from the offering, and the total number of shares outstanding will not change.
Comments (2)
  • Philip Marlowe
    , contributor
    Comments (849) | Send Message
     
    Furthermore, it should be noted that these are the last of GGC's shares, so this is the last of the offerings. These 4.5 mil shares were hanging over the stock for the past month I am glad we are done with them.
    5 Dec 2013, 05:27 PM Reply Like
  • manfredthree
    , contributor
    Comments (1328) | Send Message
     
    We expect the perception of the overhang has been a major drag on SLCA share price. Once this is done, the brakes should come off. We believe that the stock will trade down for only a very short period, then move on to new 52 week highs. We are 2/3 allocation deployed and will commit to our final third on tomorrow's dip. Hopefully a market selloff compounds what we think will be the last of the bargain pricing.
    5 Dec 2013, 07:47 PM Reply Like
DJIA (DIA) S&P 500 (SPY)