Chip maker LSI Logic led a host of technology companies that have either closed funding or filed for offerings this week. LSI said it raised $300m through a private placement to institutional investors of 4.25% convertible subordinated notes due 2004. The Milpitas, California-based company said the total could be increased by up to an additional $45m pursuant to an over- allotment option. The notes are convertible into LSI Logic common stock at $31.353 per share. LSI plans to use the net proceeds of the offering to repay a portion of the bank debt incurred to acquire Symbios Inc in August.
Meanwhile, design software and multimedia tools firm Autodesk Inc has completed an offering of 3.0 million shares of common stock at $41 per share, raising $123m before expenses. An additional 450,000 shares may be sold by underwriters Goldman Sachs, Piper Jaffray and BancBoston Robertson Stephens to cover over- allotments. As the San Rafael, California-based company had previously stated, the principal purpose of the offering was to qualify its acquisition of Discreet Logic Inc for accounting under the pooling of interests method. Separately, Autodesk announced Tuesday that it had closed the deal. It will issue 10 million shares of Autodesk stock, based on an exchange ratio of 0.33 shares for each outstanding Discreet Logic share, valuing the transaction at roughly $410m based on Tuesday’s closing price.
Internet advertising house DoubleClick Inc also pocketed some cash, having completed the sale of $200m in 4.75% convertible subordinated notes due 2006 through a private offering. The New York-based company has also granted the initial purchasers a 30- day option to buy an additional $50m to cover any over-allotments and the notes are convertible into shares of common stock at a conversion price of $165. Proceeds from the offering are expected to be used for working capital, the expansion of international operations and sales and marketing capabilities, and for product development. The company also says it may use a portion of the net proceeds for acquisitions.
Atlanta-based internet service provider MindSpring Enterprises Inc is looking to raise some capital itself and has filed a shelf registration statement with the SEC for the public offering from time to time of up to $800m in debt and equity securities. Getting a quick start in that direction, the company has already filed a supplement to the shelf registration for offerings of up to 2.3 million shares of common stock, including 300,000 shares to cover over-allotments and up to $149.5m in convertible subordinated notes, including $19.5m for possible over- allotments, all of which will be issued by the company. The debt and stock sales are being managed by Goldman Sachs, ING Baring, Bradford & Co, DLJ, First Union and Jefferies & Co and are expected to be completed in April.
Beyond.com Corp, the Sunnyvale, California-based online software retailer, joined MindSpring in filing for the sale of 4.0 million common shares in a secondary offering of its own, with 3.0 million being sold by the company and the rest by existing stockholders. The shares are being offered through an underwriting syndicate managed by Credit Suisse First Boston, DLJ, BancBoston Robertson Stephens and CE Unterberg, who have been granted an option for another 600,000 shares. The company intends to use the proceeds from the offering for general corporate purposes including working capital, principally sales and marketing for brand development, potential acquisitions and debt service payments.
