Enterprise raises $25 million, sees $62 million more; Empyrean gets $10 million line; Momenta sells stock

By Kenneth Lim

Boston, Dec. 12 - Enterprise Financial Services Corp. gave its balance sheet a boost with a $25 million placement of convertible preferreds.

Empyrean Holdings, Inc. arranged a new $10 million equity facility for the next three years with a private equity fund.

Momenta Pharmaceuticals, Inc. plans to raise $25.2 million of working capital through a private placement of its common stock.

Brulines Group plc seeks £4.7 million through a private offering of its common stock as the company said it completed an acquisition.

Enterprise takes in $25 million

Enterprise Financial raised $25 million through a private placement of 9% convertible trust preferred securities.

The 30-year securities are initially convertible into common stock at $17.37 per share. Enterprise Financial common stock (Nasdaq: EFSC) gained 10.77% or $1.41 on Friday to close at $14.50. The company has a market capitalization of $184.54 million.

The convertible trust preferred securities qualify as tier I regulatory capital subject to certain limitations.

After Dec. 12, 2010, the company may terminate the conversion rights if the price per share of its common stock exceeds $22.58 for 20 consecutive trading days.

Clayton, Mo.-based Enterprise Financial is a financial holding company.

Enterprise Financial also announced that it had obtained preliminary approval to sell up to $62 million of senior preferred stock and warrants under the U.S. Treasury Department's Capital Purchase Program. The preferreds sold under the federal program will bear a dividend of 5% for five years and 9% thereafter. The warrants will have a strike price of $15.34.

"We view the private convertible trust preferred investments, along with the U.S. Treasury Department's selection of Enterprise to participate in its Capital Purchase Program, as strong votes of confidence in our company from both the private and public sectors," Enterprise Financial president and chief executive Peter Benoist said in a statement. "Even though Enterprise already is well-capitalized, we believe securing additional capital is prudent in this unsettled economic environment. Additionally, it allows us to continue our growth and take advantage of opportunities that may arise in the future."

Empyrean takes $10 million equity line

Empyrean Holdings negotiated a $10 million three-year equity financing facility with Dutchess Private Equities Fund, Ltd.

Under the deal, Empyrean may put its common stock to Dutchess during the term of the facility in tranches of $250,000 or double the average market value of Empyrean stock being traded at the time of the put. The shares will be priced at 93% of the lowest closing bid price of the common stock during the pricing period.

Empyrean common stock (OTCBB: EMPYE) closed unchanged at $0.005 on Friday. The company has a market capitalization of $240,200.

Empyrean is a Houston-based diversified holding company that aims to spin off its subsidiaries into publicly traded entities.

"This financing will provide us with access to substantial capital over a period of time, and will ensure that we have the funds necessary to implement the initial phase of our business plan," said Empyrean chief executive Robert L. Lee in a statement.

"The structure of the agreement also provides us with a measure of flexibility by allowing us to access this capital at our option, thus protecting our investors from any unnecessary dilution. It is also our intention to pursue alternative financing that is more project specific to the development plans being pursued for each of the company's subsidiaries."

Momenta to raise $25.2 million

Momenta Pharmaceuticals plans to place $25.2 million of its common stock in a registered direct deal.

The company will sell 2.8 million common shares at $9 per share. Momenta, a $400.6 million market capitalization company, saw its shares (Nasdaq: MNTA) gain 1.4% or $0.15 to close at $10.85 on Friday.

Proceeds will be used for general corporate and working capital purposes.

Momenta is a Cambridge, Mass.-based biotechnology company specializing in the characterization and engineering of complex drugs.

Brulines to raise £4.7 million

Brulines Group will offer £4.7 million of its common stock through a private placement.

The company is selling up to about 3.79 million ordinary shares at 125p apiece. Brulines common stock (LSE: BRU) closed at 124p on Friday, lower by 0.4% or 0.5p. The company has a market capitalization of £29.92 million.

Proceeds will be used to strengthen the company's balance sheet and enable it to pursue future acquisition opportunities.

Brulines is a Stockton-on-Tees, England-based pub operations services provider.

The placement came shortly after Brulines announced an acquisition of Vianet Ltd. for an undisclosed amount.

"I am delighted at the level of institutional support, which endorses our growth strategy," said Brulines chief executive James Dickson in a press release. "We are excited about the opportunity to build a stronger business and to capitalize on the opportunity to expand our core capabilities into adjacent markets."

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