News

11 September 2009

 

Cree common stock offering targets $150m CapEx in fiscal 2010

Cree Inc of Durham, NC, USA, which manufacturers LED chips, lamps and lighting fixtures as well as gallium nitride and silicon carbide power-switching and RF/wireless microelectronic devices and SiC substrates, has commenced an underwritten public offering of 11 million shares of its common stock.

The offering includes a 30-day option for the underwriters to purchase up to 1.65 million additional shares to cover overallotments, if any. Cree is conducting the offering pursuant to an effective registration statement under the Securities Act of 1933.

Cree says that it intends to use the proceeds from the offering for anticipated capital expenditures (CapEx) of about $150m in its fiscal 2010 (from 1 July 2009 to end-June 2010) and additional future capital expenditure needs, with the remainder being used for general corporate purposes, including working capital and potential strategic investments. By comparison, CapEx was about $55m in fiscal 2009.

J.P. Morgan Securities Inc is the sole book-running manager for the offering, Bank of America Merrill Lynch is the lead manager, and Piper Jaffray, Morgan Keegan, Oppenheimer and America’s Growth Capital are acting as co-managers.

See related items:

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Cree grows 24% year-on-year to record $140m revenue

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Visit: www.cree.com