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February 27, 2007
BigBand Networks Sets IPO
VentureWire
Underwriters for BigBand Networks Inc. set the terms of the company's pending initial public offering at 10.7 million shares with an estimated price range of $10 to $12 a share.
At this price range, the IPO is valued at up to $128.4 million, and is expected to generate proceeds of up to $90 million for BigBand.
On Dec. 22, BigBand Networks filed an IPO to sell up to $140 million in common stock but didn't detail the terms of the offering.
According to an amended prospectus filed with the Securities and Exchange Commission, BigBand Networks plans to offer 7.5 million shares in the IPO, while 3.2 million shares will be sold by selling holders.
About 57.1 million shares of company stock will be outstanding after the offering, giving the company a suggested market capitalization of up to $685.4 million. Existing shareholders have invested $128.6 million at an average share price of $2.59 per share.
Among the company's backers, Redpoint Ventures, which held 25.8% of the company before the filing, will see its stake reduced to 22.5% after the offering; Charles River Partners will hold 19% post-IPO, down from 21.8%; Meritech Capital will hold 8.5%, down from 9.8%; Evergreen Partners will hold 5.9%, down from 8.3%; Pilot House Ventures will hold 5.6%, down from 7.8%; and Cedar Funds will hold 4.4%, down from 6%.
As part of the IPO, some of the company's VC backers will sell some of their shares. Evergreen will sell about 734,000 shares, with an expected return of up to $8.8 million; Pilot House will sell about 690,000 shares, providing them with proceeds of up to about $8.3 million; and Cedar Funds will sell about 446,000 shares, reaping up to about $5.4 million.
The Redwood City, Calif., company develops platforms that enable cable operators and telephone companies to offer video, voice and data services across networks.
The company said it intends to use the net proceeds from the IPO to repay about $14 million in debt, and the rest for working capital, capital expenditures, acquisitions and other general corporate purposes. It won't receive any proceeds from the sale of shares by the selling holders, the filing said.
Morgan Stanley, Merrill Lynch & Co., Jefferies & Co., Cowen & Co. and ThinkEquity Partners LLC are underwriting the IPO.
The underwriters also have the right to buy up to an additional 1,605,000 shares to cover overallotments, the SEC filing said.
For the year ended Dec. 31, BigBand Networks reported net income of about $8.9 million, swinging from a loss of $25.5 million in 2005.
Redwood City, Calif.-based BigBand Networks raised more than $100 million since 1998 from several venture capital firms. Its largest shareholder is Redpoint Ventures, which invested alongside ADC Telecommunications Inc., Cedar Funds, Charles River Partners, Meritech Capital and Pilot House Ventures.
The company said its common stock has been approved for listing on the Nasdaq Global Market under the symbol BBND.
BigBand Networks Sets IPO
VentureWire
Underwriters for BigBand Networks Inc. set the terms of the company's pending initial public offering at 10.7 million shares with an estimated price range of $10 to $12 a share.
At this price range, the IPO is valued at up to $128.4 million, and is expected to generate proceeds of up to $90 million for BigBand.
On Dec. 22, BigBand Networks filed an IPO to sell up to $140 million in common stock but didn't detail the terms of the offering.
According to an amended prospectus filed with the Securities and Exchange Commission, BigBand Networks plans to offer 7.5 million shares in the IPO, while 3.2 million shares will be sold by selling holders.
About 57.1 million shares of company stock will be outstanding after the offering, giving the company a suggested market capitalization of up to $685.4 million. Existing shareholders have invested $128.6 million at an average share price of $2.59 per share.
Among the company's backers, Redpoint Ventures, which held 25.8% of the company before the filing, will see its stake reduced to 22.5% after the offering; Charles River Partners will hold 19% post-IPO, down from 21.8%; Meritech Capital will hold 8.5%, down from 9.8%; Evergreen Partners will hold 5.9%, down from 8.3%; Pilot House Ventures will hold 5.6%, down from 7.8%; and Cedar Funds will hold 4.4%, down from 6%.
As part of the IPO, some of the company's VC backers will sell some of their shares. Evergreen will sell about 734,000 shares, with an expected return of up to $8.8 million; Pilot House will sell about 690,000 shares, providing them with proceeds of up to about $8.3 million; and Cedar Funds will sell about 446,000 shares, reaping up to about $5.4 million.
The Redwood City, Calif., company develops platforms that enable cable operators and telephone companies to offer video, voice and data services across networks.
The company said it intends to use the net proceeds from the IPO to repay about $14 million in debt, and the rest for working capital, capital expenditures, acquisitions and other general corporate purposes. It won't receive any proceeds from the sale of shares by the selling holders, the filing said.
Morgan Stanley, Merrill Lynch & Co., Jefferies & Co., Cowen & Co. and ThinkEquity Partners LLC are underwriting the IPO.
The underwriters also have the right to buy up to an additional 1,605,000 shares to cover overallotments, the SEC filing said.
For the year ended Dec. 31, BigBand Networks reported net income of about $8.9 million, swinging from a loss of $25.5 million in 2005.
Redwood City, Calif.-based BigBand Networks raised more than $100 million since 1998 from several venture capital firms. Its largest shareholder is Redpoint Ventures, which invested alongside ADC Telecommunications Inc., Cedar Funds, Charles River Partners, Meritech Capital and Pilot House Ventures.
The company said its common stock has been approved for listing on the Nasdaq Global Market under the symbol BBND.
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