3D printer maker to use funds for acquisitions, pay debt
Trading resumed for shares of 3D Systems Corporation, the nation’s top 3D printer manufacturer, after a two-hour halt Wednesday morning, following an announcement it will price its $250 million public offering after Thursday’s close.
Rock Hill, S.C.-based 3D Systems is a publicly traded (NYSE: DDD) manufacturer and marketer of commercial and consumer 3D printers, printing materials and software services as well as CAD modeling, reverse engineering and inspection software tools.
The company filed a $500 million mixed shelf registration with the Securities and Exchange Commission on Tuesday, detailing its intention to sell a mix of registered securities, including common and preferred stock shares, warrants and debt securities, at some time in the future.
The company said it will not receive any proceeds from the sale of offered securities but expects to use them to finance future acquisitions and for working capital, which may include paying off debt.
3D Systems’ stock was trading after the halt at $40.43, down more than 5 percent. The company’s shares closed Tuesday at $42.62, down 1.3 percent. But investors got spooked after hours, dropping the stock almost another 7 percent. The 52-week stock price ranges from $17.04 to $47.99. The company has a market capitalization of $3.96 billion and a P/E ratio of 93.38.
The SEC registration also announced the sale of 1.3 million shares, valued at $53 million, owned by existing stockholders, “including certain officers and directors and their affiliates.”
3D Systems and those stockholders also expect to grant 30-day options to the underwriters, exercisable on a pro rata basis, to purchase up to an additional 15 percent of the offered shares if the other offered shares are sold.
The underwriters include Needham & Company, LLC, acting as the offering’s sole book-running manager, and Canaccord Genuity Inc. and Piper Jaffray & Co. acting as co-lead managers.
Late last month, 3D Systems reported record quarterly revenue of $102.1 million, up 31 percent, on 81 percent higher printer sales.
The company reported first quarter net income dropped to $5.9 million, or 6 cents per share, but excluding one-time items, the company earned 21 cents per share meeting analysts’ expectations.
“We expect 2013 to be our most exciting and most productive new product introduction year in the history of the company,” said 3D Systems CEO Avi Reichental.
Shares of 3D Systems Corporation were up nearly 10 percent in trading Monday after Standard & Poor’s announced the 3D printer maker would be added to its MidCap 400 Index after the closing bell Wednesday.
