24/7 Wall St. » STNG

Ten Big Secondary Stock Offerings at Once, Almost $1.7 Billion Total (BNNY, TEU, EROC, ESC, HTWR, IMRS, STNG, SUI, WAGE, YNDX)

Jon C. Ogg — Wed, 13 Mar 2013 15:45:44 +0000

As the stock market keeps rising and rising, investors need to pay attention to how many companies are raising capital via secondary stock offerings. Some of these secondary stock offerings are for the benefit of the company, and others are for the benefit of the corporate insiders or backers who are able to sell shares while the market is strong.

Below are just some of the offerings we have seen today, but be advised that this represents a sum of close to $1.7 billion in gross sales that has to be absorbed by equity buyers. It is also after eight straight days of gains on the Dow Jones Industrial Average.

Annie’s Inc. (NYSE: BNNY) is back at the fountain and sold 3,500,000 shares at a price to the public of $40.00 per share. Be advised that these shares were sold exclusively by participating selling stockholders. The stock is down 3.7% at $39.79 and is down about $9 from its prior post-IPO high since the company has sold stock and had some food quality issues.

Box Ships Inc. (NYSE: TEU) sold 4 million common shares at $5.25 per share for gross proceeds of about $21 million, versus a $124 million market cap. The company plans to use the proceeds of the offering for general corporate purposes, such as the repayment of debt and the acquisition of ships.

Eagle Rock Energy Partners L.P. (NASDAQ: EROC) joined the master limited partnerships (MLPs) in selling units and bumped the offering up to 9 million units at $9.31 per unit. The reaction has the listed units down more than 3% from yesterday’s close at $9.32. Eagle Rock said that it intends to use the net proceeds to repay a portion of the outstanding borrowings under its credit facility. Be advised that the distribution yield here is about 9.2%.

Emeritus Corp. (NYSE: ESC) sold 7.97 million shares of common stock on behalf of the senior living services provider at $27.00 per share, versus the $27.54 closing price yesterday. Be advised that these shares were sold by affiliates of AREA Property Partners. Also be advised that the CEO and directors also were selling shares here. The company itself granted the underwriters a 30-day overallotment option to purchase up to an additional 1,196,040 common shares, and those proceeds (if exercised) would be used for general corporate purposes. Shares are down 2% at $26.96 against a 52-week range of $14.24 to $30.95.

HeartWare International Inc. (NASDAQ: HTWR) sold 1.5 million shares at $86.45, which was at yesterday’s closing bell price. This is an extra 10% of the float, but the proceeds are for the company itself, which is planning to use the net proceeds for working capital and general corporate purposes.

IMRIS Inc. (NASDAQ: IMRS) sold 5.75 million shares at $3.50 per share to raise just over $20 million. Shares are down at $3.29 after the offering. The good news is that IMRIS intends to use the net proceeds from this offering for working capital and general corporate purposes.

Scorpio Tankers Inc. (NYSE: STNG) sold a whopping 29.01 million shares at $8.10, versus an $8.53 close. Shares are only down 0.9% at $8.45 after the offering. Be advised that a firm we are unaware of named RS Platou Markets was the sole manager and lead placement agent. The net proceeds of the offering are expected to be used for vessel acquisitions, working capital and other general corporate purposes. The prior market cap before the effects of the offering is about $390 million, and the gross proceeds were about $235 million in the offering.

Sun Communities Inc. (NYSE: SUI) sold 5 million shares in an upsized offering at $45.25 per share. Net proceeds are for general corporate purposes, and the stock is down 0.85% at $45.29 against a 52-week range of $36.15 to $47.84.

WageWorks Inc. (NYSE: WAGE) sold 5.631 million shares at $24.00 per share, versus a $24.07 close. While shares are actually up on the day, we would point out that selling stockholders were selling 5,131,115 shares in the offering. This company has performed very well since its IPO, with its stock having risen more than 100%.

Yandex N.V. (NASDAQ: YNDX) is called the “Google of Russia” by traders, and its ADRs took a big hit on Tuesday ahead of the offering, from $25 down to almost $23.00. The company’s selling shareholders (BC&B Holdings B.V., Belka Holdings Limited, Ilya Segalovich and Emerald Trust) sold 24,253,987 Class A shares at a price to the public of $22.75 per share. None of the shares were sold by Yandex, and the company will not receive any proceeds from the offering. The saving grace here is that shares have bounced almost 4% to $23.92, against a 52-week range of $16.65 to $28.14.

Be advised that these are not quite all the offerings, when you include some fresh filings and what are some offerings too small to matter. The total offerings come to about $1.67 billion that the market has to pony up cash for instead of buying existing shares. About $550 million was the Yandex offering alone, but seven of these 10 offerings were $100 million or more in gross proceeds raised.

Filed under: Active Trader, IPOs & Secondaries Tagged: BNNY, EROC, ESC, featured, HTWR, IMRS, STNG, SUI, TEU, WAGE, YNDX

24/7 Wall St. Closing Bell (GOOG, IAG, ERTS, STX, ONXX, CRZO, GIL, BKS, LULU, ISLE, KR, TLB, PEIX, LAVA, CLWR, STNG, HOVNP)

Paul Ausick — Thu, 01 Dec 2011 21:05:52 +0000

Equity markets opened slightly lower this morning, following yesterday’s big share price increases. For most of the day stocks traded slightly lower, although they have moved to a very slight gain in the final hour of trading. China’s purchasing managers index was weaker than expected, which is probably the reason for the slow start this morning, and then new US unemployment claims were higher than expected adding more pressure on prices. The dollar has traded weaker relative to the euro, but strengthened against the yen. Crude oil is trading down marginally at $100.18/barrel and gold is also down slightly at $1,743.870/ounce.

The unofficial closing bells put the DJIA down more than 25 points to 12,020.48 (-0.21%), the NASDAQ rose nearly 6 points (0.22%) to 2,626.20, and the S&P 500 fell -0.19% or more than 2 points to 1,244.58.

There were several analyst upgrades and downgrades today, including Google Inc. (NASDAQ: GOOG) raised to ‘buy’ at Citigroup. Other ratings action included IAMGOLD Corp. (NYSE: IAG) started as ‘outperform’ with a $25 price target at Credit Suisse; Electronic Arts Inc. (NASDAQ: ERTS) raised from ‘neutral’ to ‘buy’ at Citigroup; Seagate Technology PLC (NYSE: STX) raised to ‘buy’ at Argus; Onyx Pharmaceuticals Inc. (NASDAQ: ONXX) cut from ‘buy’ to ‘neutral’ at BofA/Merrill Lynch; and Carrizo Oil & Gas (NASDAQ: CRZO) reiterated ‘buy’ with a new price target of $49 at Canaccord Genuity.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: Gildan Activewear Inc. (NYSE: GIL) is down -30.8% at $16.53, after setting a new 52-week low of $16.52; Barnes & Noble, Inc. (NYSE: BKS) is down -16.9% at $14.50; Lululemon Athletica Inc. (NASDAQ: LULU) is down -4.8% at $47.34; Isle of Capri Casinos, Inc. (NASDAQ: ISLE) is down -8.5% at $4.51; The Kroger Co. (NYSE: KR) is up 1% at $23.41; and The Talbot’s Inc. (NYSE: TLB) is down -17.1% at $1.65, after posting a new 52-week low of $1.63. We have more details on Lululemon’s earnings and on the November sales reports from a number of retailers, including Talbot’s.

Several other standouts from today are as follows…

Pacific Ethanol Inc. (NASDAQ: PEIX) is up 26.7% at $1.33. The ethanol maker has regained compliance with Nasdaq listing requirements and has increased ownership of its four ethanol production plants to 27%.

Magma Design Automation Inc. (NASDAQ: LAVA) is up more than 25% at $7.16. The design automation firm has agreed to be acquired by Synopsys Inc. (NASDAQ: SNPS) for $7.35/share.

Clearwire Corp. (NASDAQ: CLWR) is up more than 17% at $2.09. The wireless broadband provider received a $1.6 billion investment from its majority owner Sprint Nextel Corp. (NYSE: S) that will enable Clearwire to meet its $237 million debt payment. We have more details here.

Scorpio Tankers Inc. (NYSE: STNG) are down more than -20% at $5.31. The Monaco-based petroleum shipping company priced a secondary offering this morning at $5.50/share.

Hovnanian Enterprises Inc. (NASDAQ: HOVNP) is down more than -14% at $1.31. The homebuilder has been batted around for nearly a year now, and even improving news on construction spending can’t stop the slide.

Stay tuned for Friday. We have noted speeches due from Dallas Federal Reserve President Richard Fisher, Philadelphia Fed President Charles Plosser, and Boston Fed President Eric Rosengren. Here’s another noteworthy event scheduled for tomorrow (all times Eastern):

8:30 a.m. – Non-farm payroll report

Paul Ausick

Filed under: Active Trader, HI/LOW, Market Close Tagged: BKS, CLWR, CRZO, ERTS, GIL, GOOG, HOVNP, IAG, ISLE, KR, LAVA, LULU, ONXX, PEIX, STNG, STX, TLB

More IPO Filings: Higher One, Oxford Resources, NA-Uni, Scorpio

Jon C. Ogg — Thu, 25 Mar 2010 19:13:14 +0000

You have seen the floodgates opening for secondary offerings dues to the market strength, but we are also seeing more legitimate filings from private companies looking to come public via an initial public offering. Higher One Holdings Inc. and Oxford Resource Partners, LP are two initial public offerings we have seen this week. We have also seen a quasi-IPO from National American University Holdings, Inc. (OTC: NAUH), although that is an offering to move up to NASDAQ. Another company outside of the U.S. named Scorpio Tankers Inc. is out with an amended filing for an IPO.

We have listed the basic terms of each, underwriters, a description, and added color where applicable.

Higher One Holdings Inc.

Higher One Holdings Inc., a provider of technology and payment services to higher education institutions, did not disclose the terms but it listed up to $100 million in common stock would be sold in its IPO. The company also offers campus communities with convenient and student-oriented banking services. It plans to trade on the NASDAQ, although no stock ticker was proposed.

Goldman Sachs is the sole bookrunner, UBS is a co-lead and co-managers are listed as Piper Jaffray, Raymond James, William Blair, and JMP Securities. Lightyear Capital holds a 32% pre-IPO stake.

Oxford Resource Partners, LP

Oxford Resource Partners, LP, a a low cost producer of high value steam coal listed as the largest producer of surface mined coal in Ohio, filed this week for an initial public offering. The IPO terms are not disclosed, but it is planning to sell up to $250,000,000.00 in common units. It has a proposed ticker of “OXF”" on the NYSE and the lead underwriters are listed so far as Barclays Capital and Citigroup. Its reserves and operations are strategically located in Northern Appalachia and the Illinois Basin to serve our primary market area of Illinois, Indiana, Kentucky, Ohio, Pennsylvania and West Virginia; and it currently has 19 active surface mines that are managed as eight mining complexes.

It produced 5.8 million tons of coal during 2009; and as of December 31, 2009, it controlled 91.6 million tons of proven and probable coal reserves, of which 68.6 million tons were associated with its surface mining operations and the remaining 23.0 million tons consisted of underground coal reserves that it has subleased to a third party in exchange for an overriding royalty.

National American University Holdings, Inc.

National American University Holdings, Inc. (OTC: NAUH) is trying to move from the OTC to NASDAQ, so this is not exactly a genuine IPO. The company filed to sell up to $80.5 million in its IPO and the 7 million shares is listed as 3.5 million by holders and 3.5 million by the company. Stifel Nicolaus is the sole bookrunner, William Blair is the co-lead manager, and Signal Hill is co-manager. Its self-description is as follows:

We are a regionally accredited, for-profit, multi-campus institution of higher learning founded in 1941. We offer academic programs to our students through campus-based and online instruction. We provide Associate, Bachelor’s and Master’s degree programs in business-related disciplines, such as accounting, applied management, business administration and information technology, and in healthcare-related disciplines, such as nursing and healthcare management. Currently, our students may choose from 38 different degree and diploma programs.

Scorpio Tankers, Inc.

Scorpio Tankers, Inc. is a pending IPO selling 12.5 million shares in a range of $14 to $16 per share to raise up to $230 million. The company is incorporated in Republic of The Marshall Islands and it offers seaborne transportation of crude oil and other petroleum products worldwide. It plans to trade on the New York Stock Exchange under the symbol “STNG”. Lead underwriters are Morgan Stanley and Dahlman Rose. The company owns and operates three Panamax tanker vessels in its fleet.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: IPOs, IPOs & Secondaries Tagged: NAUH, OXF, STNG