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McCormick prices non-voting common stock offering

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McCormick prices non-voting common stock offering

McCormick & Co. Inc. said on Aug. 8 that it has priced an underwritten public offering of 5,524,862 shares of its non-voting common stock at $90.50 per share.

The net proceeds of the offering will be used to partly fund McCormick's previously announced $4.2 billion acquisition of British consumer goods company Reckitt Benckiser Group plc's food division.

The herbs and spices maker has granted the underwriters an option to buy up to an additional 828,729 shares of its non-voting common stock at the same price, less the underwriting discount, for 30 days.

Subject to customary closing conditions, the offering is expected to be completed on or around August 11.

The offering will generate net proceeds of about $482 million after taking into account estimated underwriting discounts, commissions and offering expenses payable by McCormick.

In addition to the proceeds, the company said it will fund the takeover and pay-related fees through debt financings, including a senior unsecured notes offering and borrowing under an unsecured term loan facility.

If the acquisition falls through, however, McCormick said it will use the money for general corporate purposes.

The joint book-running managers for the offering are BofA Merrill Lynch, Credit Suisse, SunTrust Robinson Humphrey and Wells Fargo Securities.