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Waves and Waves of Secondary Pricings (CVGI, CPA, G, HIG, HRP, NLST, SB, TSL)

Administrator — Fri, 19 Mar 2010 14:14:03 +0000

This week week may have been a record for any recent period on how many secondary offerings came to market combined with how many specific filings were made to raise funds for public companies. And the filings became pricings as corporations decided to use the unusual market strength to bolster their books. In some cases it was just for insiders or holders to sell. The key pricings were in Commercial Vehicle Group Inc. (NASDAQ: CVGI), Copa Holdings, S.A. (NYSE: CPA), Genpact Ltd. (NYSE: G), The Hartford Financial Services Group, Inc. (NYSE: HIG), HRPT Properties Trust (NYSE: HRP), Netlist, Inc. (NASDAQ: NLST), Safe Bulkers, Inc. (NYSE: SB), and Trina Solar Limited (NYSE: TSL).

We have provided the size and price of each deal with the relative price movement, underwriters, share impact, and comparisons on the size of the company if applicable.

Commercial Vehicle Group Inc. (NASDAQ: CVGI) filed this week for a secondary offering and this morning it priced 3,800,000 shares of common stock at a price of $6.25 per share. The offering is by the company and the approximately $22 million is earmarked for general corporate purposes and Robert W. Baird & Co. acted as underwriter for the offering. Shares are down 0.3% at $6.66 on over 300,000 shares versus 91,000 shares per day on average. The market cap before any effects of this stock is $146.7 million and the 52-week range is $0.51 to $8.08.

Copa Holdings, S.A. (NYSE: CPA) was not seen this week in the filings but this morning priced 1,600,000 of its Class A non-voting shares by its selling holder CIASA at $56.00 per share. Morgan Stanley was the sole book-runner. Shares are flat now at $57.05, so it held above the offering despite the funds going to a holder rather than the company; its market cap is $2.47 billion.

Genpact Ltd. (NYSE: G) was at $14.91 after the company registered to sell 28 million shares of common stock for selling shareholders, but this morning the pricing is for 33.6 million shares at a price of $15.00 per share. Now shares are up 1% at $15.30 this morning. Those holders include General Electric Co. (NYSE: GE) and Wells Fargo & Company (NYSE: WFC) affiliates, as well as General Atlantic and Oak Hill Capital Partners. Morgan Stanley and Goldman Sachs are lead book-running managers; Citigroup, UBS Securities, and Credit Suisse are joint book-running managers; JPMorgan Securities and Wells Fargo are co-lead managers.

The Hartford Financial Services Group, Inc. (NYSE: HIG) announced last night the pricing of its public offering of $1.1 billion aggregate principal amount of its senior notes after it had priced its stock offering the day before: that equity offering was 52.253 million shares of common stock at $27.75 per share AND a concurrent offering of 20 million depositary shares representing a 1/40th interest in The Hartford’s 7.25% Mandatory Convertible Preferred Stock (Series F) at $25.00 per depositary share. As previously noted, this is to repay the TARP.

Filed under: Secondary Offering, Trading Alert Tagged: CPA, CVGI, G, HIG, HRP, NLST, SB, TSL

Airlines Hit By UBS & Swine Flu (CAL, AMR, LCC, UAUA, XJT, CPA)

247wallst — Mon, 27 Apr 2009 13:12:54 +0000

Airlines are getting hit hard this morning before the open on two issues: swine flu and an analyst downgrade. UBS has downgraded the US legacy airline sector in a broad call and the impact on some of these stocks looks exacerbated by the swine flu news. The new sector ratings were taken to NEUTRAL from BUY. Among the downgrades were Continental Airlines (NYSE: CAL). AMR Corp. (NYSE: AMR), US Airways (NYSE: LCC), and IAL Corp. (NASDAQ: UAUA). There is also a secondary tie here for both ExpressJet Holdings Inc. (NYSE: XJT) and Copa Holdings SA (NYSE: CPA).

On the Swine Flu front, health advisories to and from Mexico are starting to allow travelers to change their flight plans to or from Mexico. Continental’s former unit called ExpressJet Holdings Inc. (NYSE: XJT) operates many of the Continental flights from Mexico to the U.S..

Copa Holdings SA (NYSE: CPA) is not exactly a Mexican airline, but it was tied to Continental and is based in Panama. This may not be fair at all, but this may be close enough for US investors to avoid as it has operations in Brazil, Argentina, Chile, Mexico, Colombia, Panama, and the United States.

UBS’s note has brought to light that bankruptcy remains a risk for many of the legacy carriers even if there is a recovery. It is not forecasting that these will go into bankruptcy, but has noted that it will get close at some.

JON C. OGG

Posted in Airlines, Analyst Calls, Entertainment, Luxury, Trading Alert, Transports Tagged: AMR, CAL, CPA, LCC, UAUA, XJT

Continental Unloading Copa Shares (CPA, CAL)

247wallst — Tue, 13 May 2008 15:54:16 +0000

Copa Holdings, S.A. (NYSE: CPA) announced today that it has filed a registration statement for a proposed offering of 3,977,300 Class A non-voting shares of Copa Holdings by selling shareholder Continental Airlines, Inc. (NYSE: CAL).

Morgan Stanley will be the sole book-running manager, while UBS Investment Bank will be the joint lead manager of this offering. The underwriters also have an over-allotment option to purchase up to an additional 397,700 shares from Continental Airlines.

Continental will hold about 1.3% of the outstanding Class A shares if the underwriters do not exercise the over-allotment option; and it will not own any more Class A shares if the underwriters exercise the full over-allotment option.

Copa Holdings will not receive any proceeds from the offering.

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Jon C. Ogg
May 12, 2008