Kemet (KEM) said after market close on Friday that it has unveiled the pricing of a previously announced public secondary offering of 8.4 million shares.
The shares offered are subject to issuance upon exercise of a currently outstanding and exercisable warrant held by the selling security holder, K Equity, an affiliate of Platinum Equity Capital Partners II, that will be sold to an exercised by UBS Investment Bank, the underwriter in connection with its sale of the underlying shares.
The underwriter has agreed to buy and exercise the warrant for $181.6 million (or $21.6 per underlying share), which includes the cash exercise price of $1.05 per underlying share to be paid by the underwriter to the company.
The company said it will not receive any proceeds from the deal, except for the underwriter’s payment of $1.04999 per underlying share to the company for the exercise of the warrant.
Completion of the exercise is expected to occur on Sept. 11.