Linn Energy pockets $360 million from PIPE; Geron gears up to close $40 million stock offering

By Sheri Kasprzak

New York, Dec. 14 - With several large private placements and direct placements wrapping up Thursday, Linn Energy, LLC led the pack with a $359,960,295 offering of trust units.

In the broader market, several large deals, mostly from biotech companies, dominated the day.

"It's the end of the year, issuers are trying to get cash infusions before the year ends," said one sellside market source. "At this point, companies are looking at their books and what their needs are going to be in the coming year. It becomes a little clearer at the end of the year what the financing needs are."

Another sellsider focused on biotech companies agreed.

"Most of the big deals are done at the end of the year," he said. "It's easier to figure out what you need."

Moving to specific offerings, Linn sold 6,650,144 trust units and 7,465,946 class C units at a blended price of $25.50 each, a 15.4% discount to the company's $30.14 closing stock price on Wednesday.

After the deal was announced Thursday morning, the stock gained 4.98%, or $1.50, to end the session at $31.65 (Nasdaq: LINE).

The investors in the deal include Zimmer Lucas Partners, LLC; GPS Partners LLC; Lehman Brothers MLP Partners, LP; Principal Strategies Group of Goldman, Sachs & Co.; Alerian Capital Management LLC; RCH Energy; and funds managed by Fiduciary Asset Management, LLC.

Lehman Brothers Inc., Citigroup Global Markets Inc., RBC Capital Markets Corp. and Jefferies & Co., Inc. were the placement agents.

The offering was conducted to help pay for the company's acquisition of a private oil and gas company and properties in the Appalachian Basin.

The acquisitions are expected to close Feb. 1.

Linn closed another very large offering for $305 million in October. In that deal, the company sold 5,534,687 class A trust units at $21.00 each and 9,185,965 class B units at $20.55 each.

The company used the proceeds from that deal to repay a $250 million bridge facility and a $55 million revolving credit facility.

Houston-based Linn is an oil and natural gas development and acquisition company.

Geron raises $40 million

Looking to the biotech sector, Geron Corp. secured $40 million from a registered direct placement of its stock.

A group of institutional investors agreed to buy 5 million shares in the deal. The price per share is a 14.3% discount to the company's $9.34 closing stock price on Wednesday.

The investors will also receive warrants exercisable for up to 1.875 million shares, exercisable for 75 days at $8.00 each. The investors will also receive warrants for up to 3 million shares, exercisable at a premium for 180 days. The strike price of the longer-term warrants could not be determined.

The shares will be sold under the company's registration statement.

Proceeds will be used for clinical trials of the company's telomerase inhibitor GRN 163L and its cancer vaccine.

The stock gave up 69 cents, or 7.4%, to close at $8.65 (Nasdaq: GERN).

Geron, based in Menlo Park, Calif., develops therapeutic treatments for cancer, degenerative diseases and chronic diseases.

Also in direct placement news, Introgen Therapeutics, Inc. settled an offering of its shares for $23,935,200.

The company sold 4,986,500 shares at $4.80 each to a group of institutional investors. The price per share is a 5.2% premium to the company's $4.56 closing stock price on Tuesday.

The shares were sold under the company's shelf registration.

Mulier Capital Ltd. was the placement agent.

Proceeds will be used for the development of the company's clinical programs, including that of Advexin, INGN 241 and others.

The company's stock gave up 3.58%, or 17 cents, to close at $4.58 (Nasdaq: INGN).

Introgen, based in Austin, Texas, develops molecular therapies for cancer and other diseases.

GTx stock climbs

A day after announcing the terms of a $60,793,600 direct placement of its stock, biotech company GTx, Inc.'s stock advanced by 3.54% Thursday.

The company's stock gained 59 cents to end at $17.25 (Nasdaq: GTXI). When the deal was announced Wednesday, the stock gave up 13 cents, or 0.77%, to close at $16.66, losing another 11 cents in after-hours activity.

In the offering, a group of institutional investors agreed to buy shares at $16.00 each.

Lazard Capital Markets LLC was the bookrunner.

Based in Memphis, GTx is a biopharmaceutical company focused on treatments for cancer and men's health problems.

Altair plans offering

In the tech sector, Altair Nanotechnologies Inc. negotiated its own direct placement of its stock for up to $25 million.

News of the offering sent the company's stock dipping 12.7% on the day. The stock began its descent early, giving up 12.67% at 10 a.m. ET. The stock went on to lose 38 cents to close at $2.62 (Nasdaq: ALTI). In after-hours activity, the stock lost another penny.

The offering includes up to 9,295,295 units at $2.70 each.

The units consist of one share and one quarter-share warrant. Each whole warrant is exercisable at $2.70 through Dec. 18, 2007.

The underlying shares will be sold under the company's shelf registration.

Cowen and Co., LLC is the placement agent for the deal, which is scheduled to close Dec. 18.

Located in Reno, Nev., Altair develops nanomaterials used in paints, coatings and other materials, as well as photocatalytic materials used in air and water cleansing systems, sensors, power systems and alternative energy devices like fuel cells.

LodgeNet's $23.35 million deal

Elsewhere, LodgeNet Entertainment Corp. finished a $23.35 million stock offering.

PAR Capital Management, Inc. bought 1 million shares in the deal.

The offering was conditional upon the completion of LodgeNet's acquisition of Ascent Entertainment Group. The deal closed Dec. 13.

The stock jumped by 15.3% after the deal was announced early Thursday. The stock gained $3.55 to close at $26.75 but lost 80 cents in after-hours trading. By 10:20 a.m. ET, the company's stock gained 18.28%, or $4.24.

Based in Sioux Falls, S.D., LodgeNet provides broadband and television services to hotels and resorts.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.