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Dana Holding Corporation (NYSE:DAN) today announced that it has priced a public offering of 34 million shares of its common stock at $6.75 per share. The size of the common stock offering was increased from the previously announced 27 million shares.
In conjunction with the offering, Dana has granted the underwriters a 30-day option to purchase up to 5.1 million additional shares. Goldman, Sachs & Co. is serving as the sole book-runner, with Citi, J.P. Morgan, Barclays Capital, Deutsche Bank Securities and UBS Investment Bank serving as co-managers for the offering.
Dana emerged from bankruptcy last February, and, as with most all suppliers, has struggled since then as the Global Great Recession marches on. Dana is in the process of cutting 5,800 jobs by year-end.
Dana closed four plants last year, and as many as 10 more closings are planned through 2010. The company is also combining its light-axle and driveshaft operations into a single, global unit.
Dana achieved break-even net income in the second quarter of 2009, compared to a loss of $122 million during the same period last year. Second-quarter sales were $1.2 billion, compared with sales of $2 billion during the same period last year. The decrease was caused by lower vehicle production across all market segments, notably within the off-highway sector.