WHERE IS THE MONEY????
DJ Hawkeye Holdings Boosts IPO Size To $523M From $350M
Wednesday, August 09, 2006 7:13:45 AM (GMT-04:00)
Provided by: Dow Jones Capital Markets Report
WASHINGTON (Dow Jones)--Underwriters for Hawkeye Holdings Inc. on Wednesday increased the offering size of the company's pending initial public offering to $523 million from $350 million, according to an amended Form S-1 filed with the Securities and Exchange Commission.
The Iowa-based ethanol producer didn't disclose details about the number of shares to be offered or an estimated price range for the IPO.
The $523 million valuation for the IPO was estimated solely for calculating the registration fee, Hawkeye said in the filing.
Hawkeye Holdings said it intends to use approximately $200 million of the net proceeds from the IPO to redeem a portion of its 8% mandatorily redeemable preferred stock, $150 million to fund its growth strategy and $50 million to repay debt.
Any proceeds from the exercise of the underwriters' overallotment option to purchase additional shares will be used to pay a dividend to the company's stockholders of record prior to the IPO. Investors in the IPO won't receive any portion of the dividend, Wednesday's filing said..
Credit Suisse, Morgan Stanley, Banc of America Securities LLC, Goldman, Sachs & Co., Cowen and Co. and Jefferies & Co. were listed as underwriters for the offering.
For the six months ended June 30, Hawkeye Holdings reported net income of $1.5 million, swinging from a loss of $3.1 million in the 2005 comparable period. The company also said revenue for the latest six-month period jumped to $94.6 million, compared with $33.4 million in the 2005 six-month period.
The company said it intends to list its common stock on the New York Stock Exchange under the symbol HWY.
