Registered Direct Offerings

ThinkingCapMarkets Podcast Series

10/26/2017

Corporate Finance | Capital Markets and Private Placements

Audio

For an issuer that has an effective shelf registration statement and is contemplating a follow-on offering, or an issuer that has a resale registration statement that is effective and selling stockholders eager to sell, a registered direct offering remains an important financing alternative.  The marketing of a registered direct offering is targeted, much like the process undertaken in connection with a PIPE transaction, but given that the securities sold in a registered direct offering are freely transferable, it has certain advantages when compared to PIPE transactions.  In recent months, a number of energy companies that have undertaken follow-on offerings have structured these as registered direct offerings.  Usually, there are a limited number of institutional investors that participate in the offering.  Of course, there is no limit on the type of investor that may participate. 

Morrison & Foerster’s Anna Pinedo gives the basics of registered direct offerings in this ThinkingCapMarkets podcast. Our recently updated FAQs can be accessed here: Frequently Asked Questions about Registered Direct Offerings.

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