Cree Raising Cash (CREE)

Cree, Inc. (NASDAQ: CREE) is raising cash.  The company, which makes lighting-class LEDs, LED lighting, and semiconductor solutions for wireless and power applications, announced that it is selling 11,000,000 shares of its common stock.   Before any price adjustments this comes to a level of $422.4 million.

Cree said that it intends to use the proceeds for an anticipated capital spending of approximately $150 million during its fiscal-2010 and for additional future capital expenditure needs.  Of course there is the “for general corporate purposes” for the remainder of the capital.

J.P. Morgan is the only book-running manager and Bank of America Merrill Lynch is the lead manager.  Co-managers are listed as Piper Jaffray, Morgan Keegan, Oppenheimer and America’s Growth Capital.  Underwriters will have a 30-day option for the underwriters to purchase up to 1,650,000 additional shares if they choose.

As far as how this $400+ million compares to the overall size, the market cap before adjusting for this dilution is listed as $3.45 billion.

Cree shares closed up 2,5% at $38.40 today, however are trading down 4.1% at $36.81.  The 52-week trading range was almost violated on the high-end today as that 52-week range is $12.57 to $38.97.  After a quick review, this is not just near a 52-week high.  This is actually within striking distance of a 5-year high.

JON C. OGG