Redwire sinks 15% after pricing 15.5M share offering at $16.75

Redwire (RDW) announced the pricing of its upsized underwritten registered public offering of 15.525M shares of its common stock, at a price to the public of $16.75 per share, for total gross proceeds of approximately $260M. Redwire shares are down 15%, or $3.17, to $17.40 in premarket trading, are now up 41c to $27.70. The offering is expected to close on or about June 18. Redwire intends to use the net proceeds for general corporate purposes, including cash to the company’s balance sheet to fund growth, the repurchase of a portion of Redwire’s convertible preferred stock, ad repayment of the previously disclosed seller note issued in connection with the company’s acquisition of Edge Autonomy Intermediate. J.P. Morgan, BofA Securities and Morgan Stanley are acting as lead bookrunning managers and Texas Capital Securities, Truist Securities and Roth Capital Partners are acting as joint book-running managers for the offering. Alliance Global Partners, B. Riley Securities and H.C. Wainwright are acting as co-managers.