Sanderson Offers Stock for New Poultry Complex

US - Sanderson Farms, Inc. has announced a common stock aimed at financing the construction of its new retail poultry complex in Kinston, North Carolina.
calendar icon 30 March 2010
clock icon 3 minute read

Sanderson Farms, Inc. has announced that it has commenced an underwritten registered public offering of 2,000,000 shares of its common stock. In connection with this offering, the Company intends to grant the underwriters a 30-day option to purchase up to an additional 300,000 shares of common stock to cover over-allotments, if any. Morgan Stanley and J.P. Morgan are the joint book-running managers of the offering, and BMO Capital Markets and Stephens Inc. are co-managers.

The Company intends to use the net proceeds from the offering, together with other funds, to finance the construction of its new retail poultry complex in Kinston, North Carolina, and a potential new big bird poultry complex to be located near Goldsboro, North Carolina. Pending such uses, net proceeds from the offering may be used to reduce indebtedness and to invest in cash and cash equivalents. The Company may use some of the invested proceeds as working capital and for general corporate purposes.

The offering is being made pursuant to an effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission on 9 October 2008. A prospectus supplement relating to the offering has been filed with the Securities and Exchange Commission.

The offering is being made only by means of a prospectus supplement and the accompanying prospectus. Copies of the prospectus supplement and accompanying prospectus relating to the offering, when available, may be obtained from Morgan Stanley & Co. Incorporated, 180 Varick Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department or by e-mail at [email protected], or from J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island Ave, Edgewood, NY 11717.

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