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McCormick to raise $500 million in public stock offering

McCormick World of Flavors store in the Light Street Pavilion at the Baltimore Harborplace. (The Daily Record/Maximilian Franz)

McCormick World of Flavors store in the Light Street Pavilion at the Baltimore Harborplace. (The Daily Record/Maximilian Franz)

McCormick & Co. Inc. on Monday said it would sell shares of its stock to raise $500 million that it would use to help pay for its recently-announced $4.2 billion acquisition of Reckitt Benckiser Group Plc.

McCormick’s assumed offering price of $94.51 per share, which was the stock’s closing price on Aug. 4, means the company expects it will issue and sell about 5.29 million shares.

Underwriters Merrill Lynch, Pierce Fenner & Smith Inc.; Credit Suisse Securities (USA) LLC; SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC have an option to buy up to $75 million of additional shares at the public offering price, minus an underwriting discount.

If the deal doesn’t go through, the money raised in the public offering could be used for general corporate purposes, including paying down debt, the company said in a prospectus for the public offering.

 


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