Palm Boosts & Prices Secondary Offering (PALM)

Palm, Inc. (NASDAQ: PALM) has priced its public secondary offering of 20 million shares at a price of $16.25 per share.  This is a fter a $17.07 close yesterday.  Palm noted that it will have 162,329,477 shares outstanding after the offering, excluding shares from the over-allotment option if exercised.

Palm noted that the net proceeds will be approximately $313,140,000, or $359,940,000 if the over-allotment option is exercised in full.

The underwriters have reserved for sale an aggregate of $35 million of the shares offered for Elevation Partners, L.P. and for the Elevation Employee Side Fund, LLC, and $2 million of the shares offered for Roger B. McNamee, one of the representatives of Elevation on Palm’s board of directors.

Goldman Sachs and J.P. Morgan are the joint-book running managers, while RBC Capital Markets is co-manager in the deal.  An additional 3 million shares have been granted to the underwriters as an over-allotment option.

As a reminder, before the earnings the short interest was something to the tune of 40% of its entire float.   Shares are indicated just under $17.00 and its 52-week high is now $17.50, although that same 52-week high is from yesterday.

JON C. OGG