Corning Incorporated announced 1 June 2005 a public offering of 20 million shares of its common stock for proceeds of approximately USD 325 million pursuant to its existing USD 5 billion universal she…
Corning Incorporated announced 1 June 2005 a public offering of 20 million shares of its common stock for proceeds of approximately USD 325 million pursuant to its existing USD 5 billion universal shelf registration statement. Goldman, Sachs & Co. is the sole underwriter for the offering. Net proceeds from the offering will be used to reduce debt by repurchasing for cash the remaining outstanding zero-coupon convertible debentures due on 8 November 2015, and for general corporate purposes. Such debentures, in an aggregate book value of approximately USD 275 million, are currently outstanding. Corning will invest the net proceeds from the stock offering in short-term interest-bearing, investment-grade obligations until they are applied as previously described. James B. Flaws, vice chairman and chief financial officer, said, “As a result of this offering and subsequent payment to our bondholders, our current debt-reduction program will be completed. We had a goal to drive our debt below USD 2 billion this year, and with this transaction, we will achieve this objective.” The shares of common stock represent new financing by Corning. The offering is made by means of a prospectus supplement to a prospectus that is part of Corning“s universal shelf registration statement previously filed with the SEC.