Allete Inc. last week announced the offering of 2.8 million shares of its common stock at $49.75 per share to help pay for capital investments.
"In a nutshell, 2014 is the largest capital expenditure year ever for Allete," said Tim Thorpe, Allete's vice president of investor relations. "We're going to be spending about $650 million on various capital projects. So that requires us to raise some financing."
The underwriters have been granted the option to buy up to 420,000 additional shares of the Duluth-based energy company's common stock to cover over-allotments, according to a company news release.
Through this transaction, Allete has raised more than $150 million dollars, Thorpe said.
"It's basically raising funds to help pay for these capital improvements," he said. "So that's the purpose of this offering."
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J.P. Morgan and Baird are serving as the book-running managers for the offering, while RBC Capital Markets and Wells Fargo Securities are the co-managers.
