Rollins Announces Commencement Of Secondary Offering Of $1.35 Bln Of Shares; Stock Down

(RTTNews) - Rollins Inc. (ROL) announced the commencement of a proposed secondary public offering of $1.35 billion of shares of its common stock by LOR Inc., one of the company's existing stockholders.

ROL closed Wednesday's regular trading at $38.08 up $0.11 or 0.29%. But in the after-hours trading, the stock dropped $2.33 or 6.12%.

Rollins said it is not selling any shares and will not receive any proceeds from the offering.

The underwriters will have a 30-day option to purchase up to an additional $202.5 million of shares of common stock from the Selling Stockholder.

The Selling Stockholder is expected to enter into a lock-up agreement for a period of 365 days from the pricing date of the Offering, during which time the Selling Stockholder will be restricted from engaging in certain transactions with respect to its shares of the company's common stock.

In addition, the company said it intends to repurchase about $300 million of the shares of common stock being offered in the Offering at the same per share price to be paid by the underwriters to the Selling Stockholder in the Offering.