Axalta Coating Systems Ltd. (NYSE: AXTA) has filed with the U.S. Securities and Exchange Commission for a secondary offering. This offering will consist of 35 million shares, with an overallotment option for an additional 5.25 million. Based on the $33.13 closing price from Monday, the total offering would be valued at roughly $1.33 billion.
The underwriters for the offering are Citigroup, Goldman Sachs, Deutsche Bank, JPMorgan, Merrill Lynch, Barclays, Credit Suisse, Jefferies, UBS Investments, Morgan Stanley, BB&T Capital Markets, Nomura, SMBC Nikko and Academy Securities.
This company is a leading global manufacturer, marketer and distributor of high-performance coatings systems. It generates roughly 90% of its revenue in markets where it holds the top or number two global market position, including the number one position in the core automotive refinish end-market, with about a 25% global market share.
Axalta has a global footprint of 35 manufacturing facilities, seven technology centers, 45 customer training centers and 12,600 employees, which allows it to serve the needs of customers in over 130 countries.
In the filing, Axalta described its finances:
For the year ended December 31, 2014, our net sales were $4,362 million, Adjusted EBITDA was $841 million, or 19.3% of net sales, and net income was $35 million. For the LTM Period, our net sales were $4,304 million, Adjusted EBITDA was $836 million, or 19.4% of net sales, and net income was $85 million. We have renewed the organization’s focus on profitable growth, achieving year-over-year Adjusted EBITDA growth for seven of the eight full quarters following the Acquisition… As of March 31, 2015, we had cash and cash equivalents of $223 million and outstanding indebtedness of $3,608 million, which may limit the availability of financial resources to pursue our growth initiatives.
The company will not receive any proceeds from this offering; instead the selling stockholders will. The primary selling stockholders are investment funds affiliated with the Carlyle Group L.P. (NASDAQ: CG), which will reduce its stake in the company from 44.34% to 27.23%, if the full overallotment option is utilized.
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Shares of Axalta closed Monday at $33.13, in a 52-week trading range of $20.11 to $36.50. In early trading Tuesday, shares were down 0.3% at $33.03. The stock has a consensus analyst price target of $36.09.
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