Friday, May 21, 2010

Trucking And Shipping Group Confirm Details Of Stock Offer

Con - way Incorporated to Raise $140 million
Shipping News Feature

US – Con – way Inc., which owns numerous trucking, freight, shipping and logistics interests, announced yesterday the completion of its previously announced offering of 4,300,000 shares of its common stock to the public at a public offering price of $35.00 per share. The Company intends to use the net proceeds from the offering for general corporate purposes including, but not limited to, working capital requirements and capital expenditures.

The net proceeds do not include any funds from the 30-day option granted to the underwriters to purchase up to 645,000 additional shares of common stock to cover over-allotments, if any, from the Company at the public offering price less the underwriting discount. Unless exercised, the 30-day option will expire on June 11, 2010. Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. served as the joint book-running managers for the offering.

In common with many similar operations Con-way have had turbulent times of late but have restructured and introduced new blood to strengthen their administration. The state of the US market means an ‘adapt or die’ approach has been necessary for all of the larger corporations and this current stock release is no doubt needed to bolster the company’s finances and invest in asset purchases. The group have spread the risk of their investments over a wide section of the shipping market with subsidiaries such as Menlo Logistics and Con-way Freight involved in various projects.