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PowerShares Financial Preferred ETF Message Board

  • ltbhdollars ltbhdollars Nov 19, 2004 3:36 PM Flag

    3rd IDS Hits US Markets

    DRY, have no other info but the following IPO NR but it appears the issues that have been backlogged waiting further reg/IRS clarifications, are filly gonna start hitting the market. These are half interest half dividend payments modeled after the Canadian Split share trust sructure. Some are paying monthly and others quaterly, do nt know which for this one.

    Begin Quote

    NEW YORK, Nov 19 (Reuters) - Coinmach Service Corp. became the third company to use the hybrid income deposit security (IDS) structure in the U.S. on Friday, after its initial public offering priced below the expected range.

    The Plainview, New York-based company raised $250.1 million after the IPO priced 18.3 million IDSs at $13.64 per IDS, the underwriter said. Coinmach had originally filed for an offering of 22 million IDSs at $15 per IDS but reduced the size of the offering to 18.3 million at a price range of $14.25 to $15.75 per IDS.

    The IDSs are hybrid securities combining Class A common stock and a senior secured note into a single unit that is sold into public markets and trades like a stock.

    Coinmach's IDSs combine 18.3 million shares of Class A stock with $123.75 million aggregate principal amount of senior notes.

    The company joins B&G Foods Holding Corp. (BGF.A: Quote, Profile, Research) , whose IPO priced in October, as the only other company this year to successfully issue the hybrid security. In December 2003, CenterPlate Inc. (CVP.A: Quote, Profile, Research) , formerly Volume Services America Holdings Inc., became the first company to come to market in the United States using the IDS structure.

    Coinmach leases laundry rooms in multi-family housing properties, installs and services laundry equipment, collects revenue from laundry machines and operates retail laundromats.

    The company will use proceeds from the offering to redeem preferred stock and outstanding notes, repay debt and to terminate interest rate swaps.

    According to a regulatory filing, the deal's underwriters, led by Merrill Lynch & Co., have the option to purchase an additional 2.75 million IDSs to cover any over-allotments.

    Coinmach's IDSs are expected to trade on the American Stock Exchange under the symbol "DRY" (DRY.A: Quote, Profile, Research) .

    Concurrent with the offering, the company is also selling a separate senior secured note with $20 million in aggregate principal amount which is not in the form of the IDSs.

 
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