Sanderson Farms (SAFM) Closes 2.3M Common Offering; Over-Allotment Exercised

Sanderson Farms, Inc. (NASDAQ: SAFM - News) announced today the closing of its underwritten registered public offering of 2,300,000 shares of its common stock, including 300,000 shares issued in connection with the underwriters exercise of their over-allotment option following the pricing of the offering. The offering price to the public was $53.00 per share.

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.

Morgan Stanley and J.P. Morgan acted as the joint book-running managers of the offering, and BMO Capital Markets and Stephens Inc. were co-managers.