Avanti aims for £86 million; NetLogic plans direct offering; IND DairyTech wraps first tranche

By Stephanie N. Rotondo

Portland, Ore., Dec. 21 - The PIPEs market saw no need to quiet down despite a short holiday week and looming year-end.

Avanti Communications Group plc brought an £86 million private placement of ordinary stock to market. The funds raised, along with a £194 million debt facility, will help the company launch its second satellite.

Meanwhile, NetLogic Microsystems Inc. announced a $29.7 million registered direct offering of equity. The proceeds will be used, in part, to repay existing debt.

IND DairyTech Ltd. wrapped the first tranche of its private placement of preferred shares, taking in C$15.6 million. SAIF Partners III LP is the investor.

Also, ChipMOS Technologies (Bermuda) Ltd. said it was seeking more than $9.5 million from a private placement of convertible notes, while Tethys Petroleum Ltd. is aiming for $5 million from a private stock sale.

Tennessee Commerce Bancorp Inc. said it raised $3.2 million from a direct stock placement. The financing will help to improve liquidity.

Avanti aims for £86 million

Avanti Communications, a London-based satellite broadband internet services provider, is seeking £86 million from a private placement of ordinary shares.

The company intends to sell 21.5 million of the shares at 400p per share.

Avanti is also in process of securing "£194 million [in] debt facilities to be provided or guaranteed by U.S. and French export credit agencies at rates below 6%," according to a press release. The funding from both transactions will be used to advance the company's planned 2012 launch of a second satellite.

Avanti's John Brackenbury and Alan Foster have subscribed for a total of 40,000 of the shares to be issued under the placement. M&G Ltd., an existing shareholder, has subscribed for 4.66 million shares.

"I am delighted to announce the financing of Hylas 2, which has been made in a manner which is highly efficient for shareholders," said David Williams, chief executive officer, in the release.

"With this second satellite, we achieve three important objectives. Firstly, we diversify our risks by launch, satellite manufacturer and geography, meaning that Avanti is a lower risk company. Secondly, we can provide in orbit resilience and redundancy, an important factor in the maturity of our offer to larger customers. Finally, we gain access to some exciting high growth markets whilst also providing existing customers in Europe with further capacity once Hylas 1 is filled.

"Hylas 2 is a much larger satellite and therefore greatly increases our revenue and profit potential. With equity dilution of less than 50%, we gain additional satellite revenue generating capacity of 275%.

"It is clear to Avanti that the market for Ka band broadband services is growing at a much higher rate than originally anticipated," Williams continued. "This project enables us to secure our position as a world leader in satellite broadband and one of the only companies with more than one Ka band satellite.

Avanti's equity (London: AVN) closed at 460p. Market capitalization is £197 million.

NetLogic brings direct placement

NetLogic Microsystems will raise $29.73 million via a registered direct offering of equity, the company announced.

The Mountain View, Calif.-based company will issue 700,400 common shares at $42.45 million in the non-brokered financing.

Proceeds will be used to repay debt, as well as for general corporate purposes. Settlement is expected by Dec. 23.

Calls seeking comment were not returned Monday.

NetLogic's stock (Nasdaq: NETL) gained 21 cents, or 0.45%, to $47.12. Market capitalization is $1.3 billion.

NetLogic Microsystems is a semiconductor manufacturer.

IND wraps first tranche

IND DairyTech took in C$15.6 million in the first tranche of its previously announced private placement of series A preferred stock.

The deal originally priced Nov. 20.

The company is selling the preferred shares at a weighted average of C$0.52 per share to SAIF Partners III LP. Of the 59.66 million shares expected to be issued, approximately 36.27 million were issued in the first closing.

If the company meets certain milestones, SAIF will be required to purchase another 9.34 million shares in a second tranche.

The shares are convertible into common stock on a 1 for 1 basis.

"SAIF is one of Asia's leading private equity firms and we view their investment in our company as strong belief and confidence in our business," said Jesse Zhu, president, chief executive officer, and founder, in a press release.

"This investment will help the company accelerate the company's expansion including by build-up of its herd size, by establishing new farms, and by increasing the company's production of milk in China. We look forward to working with SAIF and continuing to successfully grow our business."

IND's shares (TSX Venture: IND) closed unchanged at C$0.55. Market capitalization is C$62.9 million.

IND DairyTech is a Delta, B.C.-based raw milk producer.

ChipMOS to issue convertibles

ChipMOS Technologies (Bermuda) will conduct a $9.62 million private placement of convertible senior notes.

The 8% notes are convertible into common stock at $1.25 per share.

Shih-Jye Cheng, the company's CEO and chairman, has subscribed for $1 million of the notes. PacMOS technologies Holdings Ltd. is also expected to participate, though closing for that portion will be later than the broader deal.

Proceeds will be used for general corporate purposes. Aside from the PacMOS tranche, the deal is expected to settle by Dec. 29.

ChipMOS' stock (Nasdaq: IMOS) inched up 2 cents, or 2.94%, to $0.70. Market capitalization is $56.1 million.

ChipMOS Technologies is a Hsincho, Taiwan-based semiconductor test and assembly services provider for liquid-crystal and flat-panel display semiconductors.

Tethys seeks $5 million

Tethys Petroleum is looking to pocket $5 million from a private placement of common shares, according to a press release.

The company will sell 10 million shares in the non-brokered placement at $0.50 per share.

Proceeds will be used for project development and capital expenditures. Settlement is expected in the first week of January.

Tethys' equity (Toronto: TPL) finished steady at C$0.58. Market capitalization is C$78.04 million.

Tethys Petroleum is a Toronto-based oil and gas exploration company.

Tennesse Commerce deal done

Tennessee Commerce Bancorp settled a $3.2 million registered direct offering of stock.

The company sold 903,394 common shares in the non-brokered deal at $3.65 per share to affiliates and at $3.63 per share to non-affiliates.

The Frankiln, Tenn.-based bank holding company expects to use proceeds for general capital purposes and to improve liquidity.

Calls seeking comment were not returned Monday.

Tennessee Commerce's stock (Nasdaq: TNCC) improved by 15 cents, or 4.62%, to $3.40. Market capitalization is $16.1 million.

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