• Equity Placement Services for Public & Private Companies

Institutional Equity Finance

Companies sell stock for a number of different reasons, including funding internal growth, accretive acquisitions, recapitalizations, reorganizations, or buyouts of large shareholders. A company might want to clean up its balance sheet by getting rid of expensive debt or expand its institutional ownership by monetizing large restricted stock positions.

For publicly-traded companies, depending on the then current market conditions, a more traditional underwriting might not be available or a viable alternative, or a private financing might be a more attractive option than a public financing from a pricing standpoint.

Our deep experience and market intelligence with respect to the equity capital markets enable us to quickly get up to speed on which structures, investors and terms are the best fit for a specific client issuer, based upon the company’s size, capital structure, trading dynamics (if applicable) and existing institutional ownership. This efficiency in matching sources and uses of equity capital enables Reedland to achieve superior results for our client issuers and the institutional investors we work with.

WHY REEDLAND CAPITAL PARTNERS?

The key value drivers we bring to the table on equity transactions are:

Speed & Confidentiality

We have previously completed PIPE transactions in as little as a week. The boutique nature of our group, combined with our deep experience in the equity capital markets and long-standing relationships with the institutional investors we work with, enable us to quickly and efficiently identify the most appropriate investor(s) for a particular company and investment structure, and size and match the components of the investor group to better fit a particular investment opportunity. This provides our group with some unique capabilities in terms of maintaining the confidentiality and integrity of our equity transactions, helping to maximize shareholder value.

Quality Investors

We only work with large, qualified and experienced institutional investors who understand the sectors in which our client issuers operate.

No Syndication

Unlike many other Wall Street investment banks, we generally avoid over-syndicating PIPE transactions with a larger number of investors than might be appropriate for a specific issuer and investment opportunity. In our experience, placing the fewest number of investors in a transaction helps maintain the confidentiality of the offering and frequently creates a more efficient and responsible exit strategy for the investors, thereby maintaining the overall integrity of the transaction and maximizing shareholder value.

Exceptional Service & Results

Our goal is to establish long-term relationships with each of the companies that retain us, as well as the institutional investors we work with. We are selective in the transactions we pursue as we spend a considerable amount of time on each project we undertake. As a boutique firm, company management will always be dealing with a principal of Reedland who can make decisions on the spot and negotiate creative solutions to problems if they should arise.

Types of Equity Transactions Reedland Arranges:

A. Committed Equity Facilities

Reedland was an early pioneer of committed equity facilities (“CEFs”) as a financing tool for publicly traded emerging growth companies, having structured and arranged over sixty (60) of these transactions since 2000, which resulted in over $1B of funded investments into companies in a variety of industries.

The key features of the equity facility structure are as follows:

  • Its “committed” nature (rather than on a “best efforts” basis, the funds’ purchase agreement contains a pricing grid that establishes the minimum dollar amount of stock the fund is obligated to purchase at escalating stock prices);
  • Its tremendous flexibility, enabling issuers to sell stock opportunistically, on their own timetable, in such amounts and prices deemed most accretive to shareholders (eg no minimum usage required, no restrictions on other financings, ability to amend terms and upsize stock sales on an “Optional” basis in certain circumstances, etc);
  • Its low all-in cost of capital (e.g. typically single-digit discount pricing, minimal banking and implementation fees).

B. PIPES/Private Placements

Reedland has extensive experience structuring and arranging private placements for public issuers and select privately held companies in most industries in amounts ranging from $5 million and up. Our deep understanding of the equity capital markets enables us to quickly understand which structures, terms and investors are the best fit for a specific company, helping to maintain the confidentiality and integrity of the transaction and achieve superior results for our corporate clients and their shareholders.

C. Monetize Existing Shareholder Holdings & Insider Block Trades

Reedland has previously arranged private placements of large insider holdings of up to $200M for publicly traded companies, and maintains this capability within its institutional investor network.

D. 3A-9 Debt Exchanges

Reedland also structures and arranges debt-for-equity exchanges for companies with publicly traded debt, facilitating the retirement of existing (and sometimes expensive) debt while expanding and diversifying the institutional ownership of a particular issuer.

Contact us at your convenience to discuss how Reedland Capital Partners might be able to assist you with your company’s financing objectives.