The Deal Reports PIPEs Surge on Muted Liquidity Concerns in Third Quarter

NEW YORK, Oct. 9, 2014 /PRNewswire/ -- The Deal, TheStreet's (NASDAQ:TST) institutional business, has issued a quarterly report that shows that 275 private-investments-in-public-equity (PIPEs) worth $11.4 billion were announced or completed in the third quarter, compared with 267 that raised $10.2 billion in the same period a year ago. The figures, generated with The Deal's PrivateRaise database, exclude PIPEs that raised less than $1 million and those by foreign companies that only trade over the counter in the U.S.

"Small-cap and microcap companies returned to the PIPEs market as investors appeared to shrug off concerns about liquidity that plagued the market in recent years," said Dan Lonkevich, Senior Editor for The Deal. "As a result, we saw more PIPEs than we've seen in a third quarter since 2009 when there were 303 worth $8.56 billion."

Some highlights from the report include:

• 275 PIPE transactions raised $11.4 billion in the third quarter of 2014.
• Unregistered PIPEs, which are most sensitive to liquidity concerns, showed the biggest improvement, with 201 deals worth $6.92 billion. That compares with 174 deals worth $3.04 billion in the same period of 2013. It was the most unregistered PIPEs in a third quarter since 2009 when 210 deals raised $6.18 billion.
• The number of registered private placements, including confidentially marketed public offerings (CMPOs), declined during the quarter to 74 deals worth $4.51 billion from 93 deals worth $7.15 billion a year earlier.
• The recent period saw the fewest number of registered deals in a third quarter since 2011 when 64 registered PIPEs raised $3.25 billion.
• Only 16 CMPOs worth $422.5 million were announced in the recent period, compared with 26 worth $1.05 billion, a year earlier.
• The number of at-the-market offering facilities also fell to 30 deals worth up to $3.69 billion from 37 worth $5.68 billion, a year earlier.
• The number of equity-line PIPEs increased to 22 worth as much as $246.2 million from 16 worth $518.1 million, a year ago.
• Healthcare companies were once again the most active issuers of PIPEs with 70 deals worth a total of $1.23 billion, followed by the energy industry with 43 deals worth $2.65 billion and technology companies with 40 deals worth $942.5 million.

The full report is available online.  For more information on PrivateRaise, visit www.privateraise.com.

About The Deal

The Deal is a media and data company providing over 45,000 users with extensive coverage of M&A, private equity, restructuring, activism and ECM. As the No. 1 provider of deal intelligence in North America, law firms, investment banks, hedge funds and private equity firms rely on The Deal's analysis of potential and announced transactions for business development and research. The Deal is the institutional arm of TheStreet, Inc. and has offices in New York, London, Washington, D.C. and Petaluma, CA. For more information, visit www.thedeal.com.

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SOURCE TheStreet, Inc.