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.

Central Pacific Financial Corp. (NYSE: CPF) announced that the United States Department of the Treasury plans to offer all 5.6 million shares of the company’s common stock it currently holds in an underwritten public offering. The Company will not receive any of the proceeds from the sale of the shares by Treasury.  The closing price on Tuesday was $14.13 and the 52-week trading range is $12.42 to $53.00.  Before the effects of this offering, Central Pacific has a market cap of $560 million. Underwriters for the offering include Sandler O’Neill & Partners acting as the book-running manager with C.L. King & Associates, Guzman & Company and SL Hare Capital acting as co-managers.

Magnum Hunter Resources Corp. (NYSE: MHR) filed for a mixed $400M securities shelf for any combination of Debt, Guarantees of Debt Securities, Common & Preferred Stock, Depositary Shares, and Warrants.  The closing price on Tuesday was $6.42 and the 52-week trading range is $3.75 to $8.66.  Before the effects of this offering, Magnum Hunter has a market cap of $799 million.

Taubman Centers Inc. (NYSE: TCO) announced the sale of a 1.75 million common shares to Goldman Sachs, the sole underwriter in a public offering, at $ 56.50 per share.  The closing price on Tuesday was $56.52 and the 52-week trading range is $34.24 to 60.41.  Before the effects of this offering, Taubman Centers has a market cap of $3.2 billion.

The last deal we are awaiting is from Five Star Quality Care Inc. (NYSE: FVE), which has fallen about 20% since it telegraphed that deal.  So far this is the first time we have seen the shares not in the red since and more details are here on that full offering.

Secondary offerings are not all bad.  Traders and investors look for secondary offerings for a myriad of reasons and some are looking for the bullish side of the trade and some are looking for the bearish side of the trade.  A little bit of something for everyone…

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

Jon C. Ogg and Jim Berdou

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.