ALEXANDRIA, Va. - VSE Corporation (NASDAQ: VSEC), a provider of aftermarket distribution and repair services, has launched an underwritten public offering of its common stock. The company also plans to provide underwriters a 30-day option to purchase additional shares, up to 15% of the total offered.
The proceeds from the offering are intended to repay outstanding borrowings under VSE's revolving loan facility. This includes debt incurred from the acquisition of Turbine Controls, Inc. Remaining funds will support future strategic acquisitions and general corporate purposes.
Jefferies, RBC Capital Markets, and William Blair are leading the offering as joint book-running managers. The offering is based on a shelf registration statement previously filed with the SEC and declared effective. Details of the offering will be available through a preliminary prospectus supplement and accompanying prospectus, accessible on the SEC's website.
This announcement is not an offer to sell securities, nor a solicitation of an offer to buy. Sales will only occur in jurisdictions where such an offering would comply with registration or qualification requirements under the relevant securities laws.
VSE operates in two primary segments, providing aftermarket parts distribution, maintenance, repair, and overhaul services for aviation, and part distribution and supply chain management services for medium and heavy-duty fleets.
The press release includes forward-looking statements regarding the stock offering, the company's expectations, and potential impacts on operations and financial performance.
These statements are subject to risks including supply chain disruptions, government program dependencies, integration of acquired businesses, competition, economic conditions, workforce management, compliance with regulations, cyber-attacks, indebtedness, and market volatility.
These forward-looking statements are based on current beliefs and expectations and are not guarantees of future performance.
This article is based on a press release statement from VSE Corporation.
InvestingPro Insights
VSE Corporation's strategic financial maneuvers, including the recent public offering of common stock, are underpinned by a mix of metrics that could interest investors. According to InvestingPro data, VSE boasts a market capitalization of $1.19 billion as of Q1 2024, indicating a substantial presence in its sector. The company has also experienced a significant revenue growth of approximately 30.92% over the last twelve months leading up to Q1 2024, highlighting its expanding operations.
Despite a recent dip in stock price with a 10.83% decrease over the past week, VSE has maintained an impressive long-term performance with a one-year price total return of 63.57%. This suggests that while the company faces short-term volatility, as confirmed by one of the InvestingPro Tips, its long-term trajectory has been strong.
Moreover, VSE has upheld dividend payments for an impressive 47 consecutive years, which could be a reassuring sign for income-focused investors, especially in an environment where consistent dividends are increasingly valued.
Investors considering capitalizing on VSE's current position can find additional insights and metrics on InvestingPro. There are 10 more InvestingPro Tips available, providing a deeper analysis of VSE's financial health and market performance. For those interested in gaining access to these valuable insights, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Visit https://www.investing.com/pro/VSEC to explore these resources and make more informed investment decisions.
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