The deals are Britannia Bulk Holdings (IPOScoop.com profile) and RHI Entertainment (IPOScoop.com profile). Each is expected to be priced Tuesday evening and to trade on Wednesday morning.
Here’s the lowdown on this week’s IPO traffic.
Out to Sea
Britannia Bulk Holdings (NYSE: DWT proposed) is a United Kingdom-based provider of drybulk shipping and maritime logistics operating in the Baltic region. The company’s fleet consists of 22 vessels, including 13 drybulk vessels. Britannia is scheduled to receive an additional six Panamax ice-class drybulk vessels, which are to be delivered between June 2009 and September 2010. Following delivery of these ships, the company believes it will own one of the largest and most modern fleets of ice-class Panamax drybulk vessels in the world.
Britannia plans to price 8.3 million shares at $17 to $19 each to raise $150 million.
The company’s financials are impressive:
For the year ending December 31, 2007, Britannia reported net income of $46 million, or $2.38 per share, on revenues of $566.4 million, compared with net income of $2.4 million, or 12 cents per share, on revenues of $191.5 million for the same period a year ago.
For the three months ending March 31, 2008, Britannia reported net income of $31.5 million, or $1.69 per share, on revenues of $300.2 million, compared with a net loss of $66,000, or a loss of 0.3 cents per share, on revenues of $61.3 million for the same period a year ago.
Formed in 2004, Britannia has about 61 employees.
Underwriters: Goldman Sachs and Banc of America Securities are the joint-lead managers. Acting as co-managers are Dahlman Rose and Oppenheimer.
The last two drybulk carriers to have gone public have run into rough seas. Consider the following:
Safe Bulkers (NYSE: SB), an Athens, Greece-based provider of marine drybulk transportation services worldwide operating a fleet of 11 drybulk Panamax, Kamsarmax, and Post-Panamax vessels, priced its IPO of 10 million shares at $19 each on May 28, 2008. That was below is original filing range of $20 to $22 per share. On Friday, June 13, Safe Bulkers closed at $17.97, DOWN 5.42 percent from its initial offering price.
Navios Martine Partners (NYSE: NMM), an Athens, Greece-based provider of drybulk carriers operating a fleet of seven vessels, including six Panamax vessels and a Capesize vessel, priced its IPO of 10 million shares at $20 each on Nov. 12, 2007. On Friday, June 13, Navios closed at $14.27, DOWN 28.7 percent from its initial offering price.
The DJ US Marine Transportation Index (Chart) has turned weak over the last three weeks. On June 13, it closed at 330.71, DOWN 10.7 percent from 370.42 on May 20.
RHI Entertainment (NASDAQ: RHIE proposed) is a New York City-based producer of new made-for-television movies, mini-series and other television programming worldwide. The company believes it is the leading provider of new long-form television content with a 22 percent market share of domestic made-for-television (MFT) movies and mini-series and a 52 percent market share of domestic mini-series. Also, RHI owns an extensive library of existing long-form television content, licensed primarily to broadcast and cable networks worldwide.
RHI Entertainment plans to price 12.5 million shares at $16 to $18 each to raise $212.5 million.
For the year ending December 31, 2008, RHI reported a net loss of $22.6 million on total revenues of $232 million, compared with a net loss of $9.2 million on total revenues of $191.5 million for the same period a year ago.
For the three months ending March 31, 2008, RHI reported a net loss of $20.2 million on total revenues of $22.2 million, compared with a net loss of $17.3 million on total revenues of $6.7 million for the same period a year ago.
Formed in 2006, RHI has about 61 employees.
Underwriters: JPMorgan and Banc of America are the joint-lead managers. Acting as co-managers are Cowen and Thomas Weisel Partners
RHI’s prospectus had some interesting notes, such as:
- Total debt about $509.5 million
- Plans to repay about $260 million existing senior second-lien credit facility in full
- Plans to distribute about “$35.7 million to fund a distribution to KRH intended to return capital contributions by KRH”
- Plans to pay about $21.2 million in “fees and expenses in connection with the reorganization and offering transactions and the concurrent financing transactions, including $6.0 million to Kelso in exchange for the termination of our fee obligations under our existing financial advisory agreement.”
The DJ US Broadcasting & Entertainment Index (Chart) has turned weak over the last month. On June 13, it closed at 402.68, DOWN 7.0 percent from 433.04 on May 15.
There you have it for June 2008 – just two deals on the calendar.