Fleetwood Enterprises public offering prices

In morning trading, the stock dropped 17 cents, or 4.6 percent, to $3.53, after hitting a 52-week low of $3.35 earlier in the session. Fleetwood's stock has lost more than half of its value over the past year as soaring gas prices and tightening consumer spending have cut into sales of its recreational vehicles.

Fleetwood plans to use net proceeds to repay part of its outstanding 5 percent senior secured convertible debentures and for general corporate purposes.

The offering is expected to close on or about Wednesday, subject to customary closing conditions.

Lehman Brothers is the sole underwriter for the offering. Fleetwood has granted Lehman the option to buy up to 1.8 million additional shares to cover any overallotments.