Investing

Secondary Offerings Keep Coming (GTY, JAZZ, OCR, RCKY, BEE)

The markets go way up, then down, then back up.  And to raise capital and to bolster the books it seems that Corporate America will sell stock.  There have been many secondary offerings in the market of late.  This morning’s news on secondary offerings is from Getty Realty Corp (NYSE: GTY), Jazz Pharmaceuticals, Inc. (NASDAQ: JAZZ), OmniCare, Inc. (NYSE: OCR), Rocky Brands, Inc. (NASDAQ: RCKY), and Strategic Hotels & Resorts, Inc. (NYSE: BEE).  We have added color, underwriters, details and a reaction to each where applicable.

Getty Realty Corp (NYSE: GTY) filed last night to sell 4.5 million shares of common stock.  It plans to use the proceeds “for the acquisition of properties in the gas station and convenience store sector, repayment or refinancing of outstanding indebtedness under its credit agreement and general corporate purposes.”  J.P. Morgan and BofA Merrill Lynch are acting as joint book-running managers for the offering.  Shares closed at $24.08, and shares are indicated down 2.8% at $23.27.

Jazz Pharmaceuticals, Inc. (NASDAQ: JAZZ) filed to sell up to $12,247,438 worth of common stock, which would be 7 million shares, via Barclays. All of the net proceeds from the offering will be used to repay a portion of its outstanding senior secured notes. Shares are indicated down around $8.50 after a $9.06 close.

OmniCare, Inc. (NYSE: OCR) filed an automatic shelf registration statement with the SEC for it and its numerous subsidiaries.  OCR did not disclose terms nor amounts, but listed that it could sell any combination of Debt securities, Guarantees of Debt Securities, Common Stock, Preferred Stock, and/or Warrants.

Rocky Brands, Inc. (NASDAQ: RCKY) is trading lower this morning after pricing a 1.8 million share secondary offering at $8.40 per share.  The close yesterday was $9.15.  Proceeds to the company will be about $14.1 million, assuming no overallotment option is exercised, to be used to repay debt. The book runner was Robert W. Baird and the co-manager was D.A. Davidson.

Strategic Hotels & Resorts, Inc. (NYSE: BEE) filed to sell 40 million shares of common stock for debt exchange tenders.   J.P. Morgan Securities Inc., Deutsche Bank Securities Inc. and BofA Merrill Lynch will act as joint book-running managers for the Offering, and Citigroup Global Markets Inc. will act as co-manager.  Shares closed at $5.93 yesterday, and shares are indicated down 13% at $5.14.

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JON C. OGG