Miller Tabak Adds Important Feature

Miller Tabak + Co. Adds Important Feature to Strategic Equity Offerings

By Gene Marbach
Several months back, I penned a column on the growing interest in Strategic Equity Offerings (SEO), also known as ATMs ("at the market" offerings). I received a number of comments and calls seeking additional information; hence, I thought an update would be in order. First a bit of a refresher: An SEO is a registered secondary offering that, unlike a traditional spot offering, is traded "from time to time" over the course of up to two years. The SEO allows issuers to tailor their equity raising to their financing needs. The issuer is in complete control of the pricing limits of where stock is sold. Furthermore, the SEO does not need to be used at all, but is available when and if capital is required. Moreover, the issuer is free to pursue other financing options while the SEO is in place if the company so chooses. The issuer would simply discontinue the program, which can be subsequently resumed at the company’s discretion. In addition, the SEO product can be used by large selling shareholders...

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