Key Secondary Offerings Impacting Stocks (AHT, CTIC, SYNM, SKT)

The impact of secondary offerings is being felt this morning.  Some key deals announced are from Ashford Hospitality Trust, Inc. (NYSE: AHT), Cell Therapeutics, Inc. (NASDAQ: CTIC), Syntroleum Corporation (NASDAQ: SYNM), Tanger Factory Outlet Centers Inc. (NYSE: SKT).  We have identified the offering terms of each deal and provided the appropriate color on each deal.

Ashford Hospitality Trust, Inc. (NYSE: AHT) was supposed to sell 6 million shares but sold 7 million shares at $12.50 per share.  Ashford will repay its outstanding debt under its senior credit facility, for general corporate purposes, financing future hotel-related investments, capital expenditures and working capital or repayment of other debt or obligations. Morgan Stanley, Credit Suisse, KeyBanc Capital Markets, and UBS are managers for the offering and Ashford granted the underwriters a 30-day option to purchase up to an additional 1,050,000 shares to cover over-allotments. Ashford closed at $12.44 yesterday and shares are indicated up around $12.50 after being at $13.20 earlier in the week.  Its 52-week range is $6.46 to $14.32

Cell Therapeutics, Inc. (NASDAQ: CTIC) is down almost 15% at $1.66 after going back to the capital well after closing at $1.96 yesterday.  The company sold $30 million of shares of its Series 13 Preferred Stock and warrants to six institutional investors, with each preferred share convertible at the option of the holder into 588 shares of common stock at $1.70 per share as the conversion price for a total of approximately 17,647,059 shares of common stock.  The adjusted 52-week range is $1.26 to $3.30.

Syntroleum Corporation (NASDAQ: SYNM) sold 15,900,000 shares of common stock and warrants to purchase up to 7,950,000 shares of our common stock at a price of $1.58 per share with 0.5 of a 5 year warrant to purchase one share of common stock at an exercise price of $2.36. Syntroleum is set to get gross proceeds of $25.1 million from the stock sale and an additional $18.8 million if all the warrants are exercised.  The deal was sold for the company’s benefit and by the company through JMP Securities LLC; net proceeds are for general corporate purposes, working capital for its Dynamic Fuels, LLC investment and initial natural gas to liquids project development.  Shares are getting pounded as a result of the offering by almost 25% of a drop to $1.49.  The new adjusted market cap before the effects of this offering is about $122 million.

Tanger Factory Outlet Centers Inc. (NYSE: SKT) announced the pricing of a 4 million share offering at $25.95 per share.  The shares were previously sold to Jefferies & Company, Inc., who also happens to be the sole underwriter of the offering.  There is a 30-day option to purchase up to 600,000 additional shares to cover overallotments. The company said that it intends to use the net proceeds to pay down funds in its senior unsecured lines of credit and for general corporate purposes.  Tanger was at $26.80 earlier in the week and closed at $26.32 yesterday.  Oddly, it is getting a boost and shares are up 1.7% at $26.76 on the offering.  What helped this morning was that Credit Suisse began coverage with an Outperform rating and a $30 price target.

JON C. OGG