Hughes Communications, Inc. (NASDAQ: HUGH) is under a little pressure after the company announced plans to offer a shelf registration for up to 2 million shares of common stock.
The broadband satellite network solutions and services global leader intends to offer 2 million common shares and an additional 239,000 shares will be offered by selling stockholders, including senior management members.
Joint book-runners will be Goldman Sachs and Lehman Brothers; and co-managers are Banc of America, Cowen & Co., Morgan Stanley, UBS, and Wachovia Securities. The underwriting syndicate will also be granted an option to purchase an additional 335,940 shares of common stock for over-allotments.
The proceeds from the public offering valued at approximately $100 million from the company itself will be used for the purchase of a satellite or for general corporate purposes. Hughes will not receive any proceeds from selling stockholders.
Shares of Hughes are down over 3% at $50.00 in early morning trading. The 52-week range is $42.00 to $61.00. The market cap currently sits around $965 million.
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May 13, 2008