Cree begins stock offering of 11M shares

DURHAM, N.C. (AP) -- Cree Inc., which makes LED lightbulbs, said Tuesday it began a public offering of 11 million common shares.

Durham, N.C.-based Cree said it would use the proceeds to fund capital expenditures worth $150 million in fiscal 2010 as well as general corporate expenses, including working capital and potential strategic investments.

The underwriters have the option to buy an additional 1.65 million shares to cover any overallotments.

J.P. Morgan Securities Inc. is the book-running manager. Bank of America Merrill Lynch is the lead manager, and Piper Jaffray, Morgan Keegan, Oppenheimer and America's Growth Capital are co-managers.

Cree shares rose 96 cents to close the regular session at $38.40 Tuesday, but they fell $1.43, or 3.7 percent, to $36.97 when the offering was announced in after-hours trading.