Major Wave of Secondaries Hitting Market (DHR, VELT, BBEP, KMP, CPF, MHR, TCO, FVE)
Secondaries, Secondaries, and more Secondaries!!! Companies must be nervous about the market and picking up capital when and where they can after a large move in the market. We are seeing many secondary offerings which have either priced or which are soon to price. Besides those there are many companies filing shelf registration statements that will allow capital raises in the near-future if and when they see fit.
Some of the companies in this are Danaher Corp. (NYSE: DHR), Velti Plc (NASDAQ: VELT), BreitBurn Energy Partners L.P. (NASDAQ: BBEP), Kinder Morgan Energy Partners LP (NYSE: KMP), Central Pacific Financial Corp. (NYSE: CPF), Magnum Hunter Resources Corp. (NYSE: MHR), and Taubman Centers Inc. (NYSE: TCO). Another pending deal which needs to be watched is coming from Five Star Quality Care Inc. (NYSE: FVE).
We have looked at the pricing and/or trading action on each, along with how the deal looks against a market capitalization and how the shares have traded. We have also added some color if it is applicable.
Danaher Corporation (NYSE: DHR) announced that it is selling 17.5 million shares of common stock at $51.75 per share. The closing price on Tuesday was $51.33 and the 52-week trading range is $35.19 to $56.09. Prior to the effects of this offering, Danaher has a market cap of $34.8 billion. The offering is expected to close on June 21, 2011. Citi, Morgan Stanley, Barclays, and UBS are acting as joint book-running managers for the offering. Baird, Jefferies, Banca IMI, Mitsubishi UFJ Securities and Wells Fargo are acting as co-managers.
Velti Plc (NASDAQ: VELT) has announced a secondary offering of 8 million shares at $15.25. The closing price on Tuesday was $15.78 and the 52-week trading range is $9.91 to 19.32. Before the effects of this offering, Velti has a market cap of $803 million. Jefferies & Company, Inc. is acting as sole book-running lead manager of the offering, with RBC Capital Markets, Needham & Company acting as lead managers and Canaccord Genuity Inc. and ThinkEquity LLC acting as co-managers.
BreitBurn Energy Partners L.P. (NASDAQ: BBEP) has announced the offering of announced today a registered underwritten public offering of 7 million partnership units at $19.78. The closing price on Tuesday was $20.60 and the 52-week trading range is $13.12 – 22.31. Before the effects of this offering, BreitBurn has a market cap of $1.2 billion. The lead underwriters for the offering are: Deutsche Bank Securities, BofA Merrill Lynch, Citi and Wells Fargo Securities.
Kinder Morgan Energy Partners LP (NYSE: KMP) just filed to sell ‘units’ on Monday has sold 17.5 million shares in a secondary offering at $ per share. The closing price on Tuesday was $71.12 and the 52-week trading range is $59.34 to $77.85. Before the effects of this offering, Kinder Morgan Energy Partners has a market cap of $22.7 billion. BofA Merrill Lynch, Barclays Capital, Credit Suisse, J.P. Morgan, and Wells Fargo Securities will act as joint book-running managers of the offering. More details are here on that full offering.