Nucor Corp., the largest U.S. steelmaker by market value, said it will raise about $3 billion from share sales and loans to fund expansions and acquisitions.
The company plans to sell 25 million new shares to investors in a public offering and will borrow as much as $1 billion in “the near term,” Charlotte-based Nucor said Monday in a statement. The money may also be used to repay existing loans, the company said.
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Nucor chief executive Dan DiMicco is investing in acquisitions and new projects in the U.S. and Europe to boost production and gain greater control of raw-material supplies as costs rise. In April, he committed to spending “billions” of dollars to increase international sales above the current 10percent of total output as a weak dollar and higher prices in other regions increase competitiveness abroad.
“Nucor intends to use the net proceeds from the offering for general corporate purposes, including acquisitions, capital expenditures, working capital needs and repayment of debt,” the company said. The share offer is expected to close on or about May 29, Nucor said.
Nucor fell 75 cents to $81.32 in regular trading Monday on the New York Stock Exchange and has risen 39 percent this year through May 16. The shares fell as low as $77.85 after the sale was announced.