FI.Chapter19 - : 0-4n '4 I . ) ",-.jJ. 1":;j. T':':";' [t]...

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: 0-4 n '4 I . . A c6- ",-.jJ. . 1":;j. . - T'::':";'' o 6 .-l 7 P*.{!i ;:]11# ;:;-it ./:,' &. [t] i;-:il: i ii i i,'r iii:l ijr (4" i!;;,;i l . ii i .1.!lr i !.; .i::.; .,,; ?ror! ) f,tb) Chaptcr n9 Clxapter 20 Chapter 2tr Initial Public Offerings, Investrnent Bankinc, and Financial Rcstructuring 674 Lease Financing 714 Hybrid Financing: Prcfcrred Stock, Wauiints, and Convertiblcs 742
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".**J /t .?r.^ 76 r' c o ErsetE*E FarbEEe Sf€erEregsu Hseves*ffies?t ffi en"p&ae*eg, se'xs.E FEsEaffi esa6 ffi e*€raeet*cr6mg n any tiven diry, thousands of businesscs go to thc narkct to raisc capiial. Follos'ing are sonre exnm- ples or sccuriiics sold during August 20(16l 1. Aircastle l-initect, a finn that loases jeis to passcnger and cargo airlines, sold 9.0909 mtlr(rr lurL. ot Lom,,ron 5l.'cl ir.rn rnilidl public offenng. It plarned to us€ fte pro ceeds of this issue b repay dcbt thai had been iaken on undcr a senior secure.t re\ ' 'lvrIl9 '-ll. .lrl f,. i,t\. hs c.,d rIlrderhrrt ers, lPMorgan Chase & Co., Bcar Stenrns Cos., and Citigroup hrc., aniicipated that the.h\l.uLrllbe.oldll,ther.'ngeofc2l o $.Zl ThF.r,tlr.rl offenn8 pri(. wd. $21,I1 and the stock closed on its firsi day of trnd urA.,n rhp \YSF dl c26 h0. Akh(ir8h dr" llU dal hvestors paid 923 per sharc, AircastLc rF.,r!, J orrly 12l 10 lhe Jil( rcrr' e w, nl io thc und€rwriters as n fee for bringnrg the :-.up r., ndrL,l. Th r-, ,r I of th. $20o.,rol mili()ll paid by n1\'esiors, Aircastlc fecejvcd nbout 'tlo I .lil millron, ,rnd lhc under\\ it- ers and their sales forccs receivcd $14.637 n]il]i(,n. Because the skrck e|dcd tlrc day 53.60 higher than the offernrg pricr', Arr. .r-rle l"al .rn .,ddIr,,nal $12 727 millrr,rl "or lhc tdb-,. fl,e inrrirl fvq'tor, rlu bought the sbck gahed this anrcrDli- 2. Leap Wireless Internaiional Inc. (il louncl(r or ( rr.^Ft .effuf"r pfr,,r. *rv i.e). .'lr(.rdv ., pubir.lv lrnded .omp.,n,. announced plans to scll an additional q.6 nlIllror. lrrrr- of r, 'rnmon n, 'ct d. +12 per shnre. It planned k) use thc proc€€ds lo prrrchi.F wrr.lp-- .pi', lrullr -,nn lo b. ir, li,.n,.l bv rh, l-CC a. ldm,n sdclF & ao. dnd Crr8r",,p \\er. lhe 1",1.1 Lnda- '. a irrl.r- t,rrp. ., ld $2ql] ,rir':on ,'f ralldl.l( 30 year bon.ts \ ith a 6.15% coupon rate, ,,.ing l,)Bin. a, rhc l,ad und,Jl\ri,- The bonds r .ere ratec:l A2 bv Moody's ard Abv Standard & I'oor's. At the tnrle ofthe i,'ue. lhe bonJ. hn,l .r )i,ld 'p er.l .i .)ferLerr,ltse puirl, ihu\L rlrL.)i.r.l oir 30'l,elr U.S. lieasury bonds. Allh"'rSh l\Ln tl,,(c i--Lrc- repic-(n jL,-l d fr.,.lron ,'f rl,e {curirip. '-.ued rl.,r n.,,nth. th.y do rllLr-.r.rr, .rn inrlr.rl pubrc "f(,:f8 .r,) ad,lrri,'nal .,ocl oflerinB by,1,' .tlre.rdr-1'rrblic. .n,pJny .,,,d,] Jebr arl(F irq. Al(r re.,dinA lhi. !lrcplcr \.rLr .r'rrlJ have a better understanding of the procc- dure' th.'e dnd other frrrn5
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The tinon€iol Lib Cyclo of o Sbd{p Compony The previous thrce chapters described how a company makes capital structure and dividmd policy decisions. Those decisions affect both the firm's need for new capital and the form or forms in \^/hich this capital is raised. We now discuss the actual process of mising capital includint the roles played by investment banlc and regulatory agencies.
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This note was uploaded on 06/08/2009 for the course FI 601-602 FI601-602 taught by Professor Prof.geary during the Spring '09 term at New Haven.

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FI.Chapter19 - : 0-4n '4 I . ) ",-.jJ. 1":;j. T':':";' [t]...

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