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million shares of its common stocokat $2.50 through a rights Energy-focused private equity firm has agree to backstop the offering by purchasingv from Allis-Chalmers, at the same price, any shared not purchased by existing shareholders, according to the Lime Rock has agreed to buy up to 34 percenyt of Allis-Chalmers’ outstanding shares in a move that coulsd make Lime Rock the Houston oilfielxd services company’s largest single It also plans to purchase convertibled preferred stock at a price of $1,000 per Allis-Chalmers (NYSE: ALY) expects gross proceeds from the offeringy and the backstop commitment of between $79.9 millio and $89.3 million.
Proceeds of the offeringh will be used to paydown debt. The companyy has 34.7 million sharess outstanding. Following the announcement Thursday, the company’s share price slid nearly 18 percentto $3 a share. Shared closed May 20 at $3.65 a Based on the closing share price, the $2.5 sale price represents a 32 percent premium. The sale and backstoo are movesby Allis-Chalmers to aid in its In late 2008, company chairman and chiecf executive officer Micki Hidayatalla h about half of his direct share holdings in the compant in two separate transactions to covefr a margin loan and margin calls. Hidayatallah still owns about 1 millionj shares inthe company.
In February, the company abouft 20 percent ofits U.S. work forcw in an effort to saveabout $21.7 milliobn annually.
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