U.S. Companies Raised $4.3 Billion with At-the-Market (ATM) Offerings in Second Quarter of 2013, Reports Brinson Patrick
– Quarter-Over-Quarter Increase is 43% vs. $3.0 Billion Raised in the First Quarter –
NEW YORK, October 4, 2013 – Brinson Patrick, a division of Meyers Associates LP, reported today that U.S. companies raised $4.3 billion through ATMs across all industries in the second quarter of 2013, a 43% increase from the $3.0 billion raised in the first quarter. The year-over-year increase is 90%, compared to $2.3 billion raised in the second quarter of 2012.
Companies whose ATMs were active in the second quarter included: Energy Transfer Partners, LP (NYSE: ETP), Dallas, TX; Federal Realty Investment Trust (NYSE: FRT), Rockville, MD; Regency Energy Partners, LP (NYSE: RGP), Dallas, TX; Host Hotels & Resorts, Inc. (NYSE: HST), Bethesda, MD.
“Since 2009 U.S. companies have been raising billions each quarter through ATM offerings,” said Todd Wyche, President of Brinson Patrick. “In particular, oil and gas companies are leveraging this offering type more than we have ever seen.”
An ATM provides an efficient means of raising equity capital over time by enabling a publicly traded company to tap into the existing secondary market for its shares on an as-needed basis. With an ATM, an exchange-listed company incrementally sells newly issued shares into the trading market through a designated broker-dealer at prevailing market prices, rather than via a traditional underwritten offering of a fixed number of shares at a fixed price all at once. ATMs are also generally less expensive and less complicated to execute than traditional equity offerings and do not require a lot of executive time.
About Brinson Patrick
Brinson Patrick draws on a 17-year track record of employing the DOCS® (Dynamic Offering of Common Stock) at-the-market (ATM) financing facility to raise the capital for clients as they need it. The DOCS® ATM is a low-profile equity offering appropriate for publicly traded companies across multiple industries and market capitalizations. It has been successfully utilized by companies in the energy, life sciences, technology, real estate, financial services and hospitality industries with market capitalizations that range from $50 million to over $1 billion.