A substantial block of U.S. Silica's (NYSE: SLCA ) common stock is about to hit the market. The company announced that a major shareholder, GGC USS Holdings, is selling 10.5 million shares in an underwritten public offering. Additionally, the issue's underwriter, Morgan Stanley, has been granted a 30-day purchase option for up to an additional 1.575 million shares.
In the press release announcing the news, U.S. Silica stressed that it will receive no monies from the offering, as it is not the selling party.
GGC USS Holdings is an affiliate of Golden Gate Capital. Following the consummation of the issue, two of the three GGC USS Holdings' officials on U.S. Silica's board will tender their resignations, effective January 2, 2014.
At the moment, U.S. Silica has just over 53 million shares outstanding, and its stock most recently closed at $32.74 per share.