Upcoming Equity and Convertible Debt Offerings Total Over $2.5 Billion

Strategic Insights -

This week, the market expects a significant influx of equity and convertible debt offerings, including major companies such as Amresco Inc. and Sterigenics International. The total value of these offerings is estimated to reach over $2.5 billion. Credit Suisse First Boston, Salomon Smith Barney, and other prominent investment firms are involved in these deals.

Key Takeaways:

  • Amresco Inc. is expected to offer 4.5 million shares concurrently with $250 million of senior subordinated notes due in 2005.
  • Ansoft Corp. will offer two million shares through Hambrecht & Quist.
  • Associated Materials, a Dallas-based company, is set to launch an initial public offering (IPO) of 2.1 million shares through Salomon Smith Barney.
  • Automotive One Parts Stores will offer 1.2 million shares and warrants through Nutmeg Securities.
  • Celumovil S.A., a Colombian company, will offer 9.4 million American depository receipts, with 5.6 million in the United States and Canada, through Salomon Smith Barney.
  • Compass International Services Corp. is expected to offer 4.1 million shares through Nationsbank Montgomery.
  • Decoma International will launch an IPO of 10 million class A subordinate voting shares through Nesbitt Burns Inc.
  • Extended Systems will offer two million shares through Volpe Brown Whelan & Co.
  • Genesis Microchip will offer 2.9 million shares through Nationsbank Montgomery.
  • Heska Corp. will offer five million shares through Merrill Lynch & Co.
  • HNC Software will issue $75 million of convertible subordinated notes due in 2003 through Deutsche Morgan Grenfell.
  • Iat Multimedia will offer $10 million of 10 percent convertible subordinated notes due in 2003 through Royce Investment Group.
  • Miscellaneous companies such as Lawyers Title Corp., Media Arts Group, Metzler Group, Midwest Bank Holdings, Mohawk Industries, Ontro Inc., Ophidian Pharmaceuticals, Physician Health Corp., Post Properties, Remec Inc., Shoe Pavilion, Simpson Manufacturing Co., Sofamor Danek Group, and Sterigenics International are also set to launch various offerings.

Statistics:

  • Total value of equity and convertible debt offerings: over $2.5 billion
  • Companies involved: 18
  • Investment firms participating: 10
  • Type of securities to be offered: equity, convertible subordinated notes, and warrants
  • Average number of shares to be offered: 3.3 million
  • Maximum number of shares to be offered: 9.4 million (Celumovil S.A.)

Sources:

  • MCM Corporatewatch