Albemarle Corp

ALB: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$677.00	Slfhhw	Hmqnzdhb

Albemarle: Stock Plummets on Convertible Preferred Share Issuance

Seth Goldstein

Mar 4, 2024

Albemarle announced a proposed public offering of depository shares, with each share representing one twentieth of a mandatory convertible preferred share that will convert to common equity. The total offering size is a little over $2 billion, including a share grant to the underwriters. The company plans to use the proceeds to help fund capital expenditures and repay short-term debt. This was unexpected news, as we view Albemarle's balance sheet as healthy, with a 1.1 times net debt/ adjusted EBITDA ratio at the end of 2023.

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