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Rail News: Railroading Supplier Spotlight

Portec initiates IPO to reduce debt, expand product lines


On Jan. 22, Portec Rail Products Inc. announced plans to offer 2 million shares of its common stock at $10 per share in an initial public offering. The company previously estimated the price range to fall between $11 and $13 per share. Ferris Baker Watts Inc. serves as the IPO's sole underwriter.

After deducting underwriting fees and other expenses, Portec expects to receive $17.3 million from the sale, which will be used to repay about $7.5 million in debt and fund potential product-expansion plans.

"The additional capital will position us to pursue our overall growth objectives, which may include acquisitions of companies that will provide us with greater market share in our existing product lines or by acquiring companies with complimentary product lines," said Portec President and Chief Executive Officer John Cooper in a prepared statement. "The additional capital will also allow us to advance our technology and market position worldwide for our friction management and other products."

Portec supplies rail joints, anchors and spikes; friction-management products and systems; and load-securement devices.

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More News from 1/23/2004