Seacoast Banking raises $250 million; Dynavax prices units deal; Seadrill gets NOK 1.9 billion

By Stephanie N. Rotondo

Portland, Ore., April 13 - PIPE deals were more diverse Tuesday, as deals ranged from big to small and came from a variety of sectors, including financials, biopharmaceuticals and mineral exploration.

Seacoast Banking Corp. of Florida announced it had pocketed $250 million from a private placement of two series of preferred shares. The funding will be used as permanent capital, as well as for a "possible assisted transaction."

Meanwhile, Dynavax Technologies Corp. priced its $44 million registered direct offering of equity units. Several investors have already lined up to take part in the financing, including Federated Kaufmann Funds.

Seadrill Ltd. said it had wrapped an NOK 1.89 billion placement of stock. The company intends to use the proceeds, in part, for an acquisition.

Lyris Inc. also completed a financing, taking in $6 million from the sale of common shares. The company's chairman subscribed for more than half of the offered shares and the proceeds will be used to reduce debt and to fund expansion.

In the mining sector, Continental Nickel Ltd. announced a plan to raise C$5 million via a private placement of units. Vulcan Minerals Inc. will also sell units - along with equity - in its quest to raise C$4.21 million.

Seacoast raises $250 million

Seacoast Banking took in $250 million from a private placement of two series of preferred shares, according to a regulatory filing.

The deal settled April 9.

The Stuart, Fla.-based bank holding company issued $50 million of series B mandatorily convertible noncumulative nonvoting preferred shares. The shares are convertible into common stock at $1.45 per share.

And Seacoast raised another $200 million via the issuance of series C mandatorily convertible noncumulative nonvoting preferred shares. The shares are also convertible into common shares, at $1.55 each.

"The series B preferred stock is permanent capital to support the company's and the bank's capital adequacy and growth," the company said in a press release issued April 9. "All proceeds of the series C preferred stock are being held in escrow to support the bank's efforts related to a possible assisted transaction, and will be returned to investors if the transaction is not completed."

Additionally, the bank's largest shareholder, CapGen Capital Group III, has agreed to purchase an additional $14 million of the series B shares. The investment requires the approval of the Federal Reserve.

"We are very pleased with this offering and appreciative of the support we received from our largest shareholder, CapGen, and other long-term institutional investors," remarked Dennis S. Hudson, III, chairman, in the release. "This positions us to pursue opportunities in our markets, and otherwise supports our growth and financial strength."

Seacoast's equity (Nasdaq: SBCF) gained $0.2536, or 11.53%, to $2.4536. Market capitalization is $135 million.

Dynavax deal priced

Dynavax Technologies priced a $44 million registered direct offering of units.

Participating investors include Federated Kaufmann Funds, Great Point Partners and Vivo Ventures.

The company will issue approximately 30.29 million of the units at $1.4525 per unit. Each unit will hold one common share and one half-share warrant. Whole warrants are exercisable at $1.50 for five years.

"Dynavax intends to use the net proceeds from the sale of the common stock and warrants for general corporate purposes and to further advance the development of the company's lead product candidate, Heplisav, including phase 3 studies to support registration in the U.S., Canada and European Union," the company said in a press release.

Settlement is expected by April 16.

Calls seeking further comment were not returned Tuesday.

Dynavax's shares (Nasdaq: DVAX) improved by 4 cents, or 2.88%, to $1.43. Market capitalization is $77.2 million.

Dynavax Technologies is a Berkeley, Calif.-based developer of treatments for cancer and allergies, and is also creating a vaccine for hepatitis B.

Seadrill gets NOK 1.89 billion

Hamilton, Bermuda-based Seadrill wrapped an NOK 1.89 billion, or approximately $322 million, private placement of ordinary shares, the company said in a press release.

The company sold 12.5 million of the shares at NOK 151.50 per share.

"The net proceeds from the private placement will be used to part finance the mandatory offer for Scorpion Offshore, for equity in the potential acquisition of the CJ70 design jack-up rig, and for further opportunistic expansion of the company," Seadrill said in the release.

Seadrill's stock (Pink Sheets: SDRLF) dropped 80 cents, or 3.07%, to $25.25.

Seadrill is an offshore drilling contractor.

Lyris wraps stock sale

Lyris, a Wilmington, Del.-based digital marketing technology and services firm, settled a $6 million private placement of common shares, according to a regulatory filing and subsequent press release.

The deal settled April 12. William T. Comfort, III, chairman of the board, and Meudon Investments were the investors.

Lyris issued approximately 18.18 million of the shares at $0.33 each. Comfort purchased approximately 12.12 million of the shares, while Meudon bought 6.06 million.

Proceeds will be used to reduce debt and to fund expansion.

"We have experienced continued market adoption of Lyris HQ, our industry-leading online marketing platform, and the proceeds from this transaction will enable us to accelerate our market development efforts," said Luis Rivera, chief executive officer, in the press release. "This will include an expansion of our sales force and marketing programs both in the U.S. and in international markets."

Additionally, Rivera said that the funding would allow the company to renegotiate its current credit agreement with Comerica Bank.

"We believe this infusion of capital will enable us to amend our credit agreement and incorporate more favorable terms," he said. "By revising the financial covenants that require certain levels of cash flow, we will now gain the flexibility to pursue what we believe are substantial near-term growth opportunities for the company."

Lyris' shares (OTCBB: LYRI) ended steady at $0.36. Market capitalization is $45.4 million.

Continental plans unit placement

Continental Nickel is seeking C$5 million from a private placement of common share units.

There is a 15% greenshoe.

The company will sell the units at C$0.70 each on a best-efforts basis. Each unit will contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.90 for two years.

Proceeds will be used for exploration activities at the Nachingwea nickel project in Tanzania, as well as for general corporate purposes.

Continental Nickel's stock (TSX Venture: CNI) declined by 10 cents, or 13.33%, to C$0.65. Market capitalization is C$19.7 million.

Continental Nickel is a Toronto-based mineral exploration company.

Vulcan to issue units, equity

Vulcan Minerals intends to sell units and stock in a private placement to raise C$4.21 million.

The Canadian mining company will sell 4.3 million flow-through common shares at C$0.70 each for proceeds of C$3.01 million. The company will also sell 2 million units at C$0.60 for proceeds of C$1.2 million.

The units will consist of one common share and one half-share warrant. Whole warrants are exercisable at C$0.80 for 18 months.

The funding will go toward petroleum exploration activities in western Newfoundland and for working capital.

Vulcan's stock (TSX Venture: VUL) slipped 5 cents, or 7.69%, to C$0.60. Market capitalization is C$28.5 million.

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