Albemarle Corp
ALB: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$384.00 | Gggpnt | Mbdddpk |
Albemarle: Stock Plummets on Convertible Preferred Share Issuance
Albemarle announced a proposed public offering of depository shares, with each share representing one twentieth of a mandatory convertible preferred share that will convert to common equity. The total offering size is a little over $2 billion, including a share grant to the underwriters. The company plans to use the proceeds to help fund capital expenditures and repay short-term debt. This was unexpected news, as we view Albemarle's balance sheet as healthy, with a 1.1 times net debt/ adjusted EBITDA ratio at the end of 2023.