Shares of Costa Mesa-based Ceradyne Inc. slumped about 7% early Friday on concerns about a debt and stock offering by the maker of bulletproof vests and other industrial ceramics.
Late Thursday, Ceradyne said it plans to sell 1.8 million shares and $100 million in debt that converts to stock.
Ceradyne plans to use the proceeds to pay down about $111 million in debt on a credit line.
The plan could dilute profits per share for investors, said Friedman Billings Ramsey analyst Michael E. Hoffman.
“2007 earnings are clearly under pressure from both volume and margins,” Hoffman said.
