Recent Public and Private Company Financings
Disappointing News from Germany: One IPO Postponed, One Canceled
July 6, 2010 – Monday was not a great day for German investment bankers. In a surprising move, the German construction company Bilfinger Berger postponed the initial public offering (IPO) of its Australian subsidiary. Bilfinger Berger had planned to raise between $1 billion and $1.2 billion. (Full Story)
Microsoft Seeks $2.25 Convertible Raise
Could this Be the Beginning of a Corporate Finance Trend?
June 10, 2010 - Surprisingly Microsoft Corp., not exactly a cash-poor company, is seeking to raise $1.15 billion of convertible notes. Many see this as helping the U.S. stock markets to recover from a two month or so corporate finance and investment banking slump. During May funds raised in the United States through sales of convertible debt or convertible preferred dropped over 40% to slightly under $2.25 billion from a high earlier this year of close to $4 billion.
The typical strategy by hedge funds and other private equity investors is to buy convertible securities including convertible debt and convertible preferred stock and then short the underlying shares seeking to obtain a profit. With a company that is as widely held as Microsoft, this more than likely is not a possibility. (Full Story)
No April Fools’ Day Joke: Meru Networks Completes IPO
Company Raises $65.8 Million
April 1, 2010 - The Sunnyvale, California based wireless network provider, Meru Networks went public through an initial public offering and raised $65.8 million. 4.4 million shares were sold in the IPO at $15.00, the top of the expected share price range.
Founded in 2002, Meru Networks provides a virtualized wireless LAN solution that cost-effectively optimizes the enterprise network to deliver the performance, reliability, predictability and operational simplicity of a wired network, with the advantages of mobility. (Full Story)
Apparel Retailer Express Plans IPO
Company Intends to Use Proceeds for Debt Repayment
February 21, 2010 – This past week the Columbus, Ohio based apparel retailer Express filed a registration statement with the U.S. Securities and Exchange Commission to go public through an initial public offering (IPO). The company indicated that it was seeking to raise up to $200 million.
Express announced that they plan to use proceeds of the IPO to prepay debt that is due in 2015. As of October 31, 2009, the company had a total of almost $417 million in debt. (Full Story)