PIPE transactions, or private investments in public equity, remain an important financing alternative. During the third quarter of 2017, PIPE transactions raised approximately $19 million. Volume in PIPE transactions appears to be on track for another approximately $50 million year. While more issuers may now be eligible to avail themselves of a shelf registration statement and may favor shelf takedowns for follow-on offerings, PIPE transactions may offer a solution especially in special situations. For example, for companies, such as energy companies, seeking to undertake a financing as part of a recapitalization, a PIPE transaction may prove the best alternative. Morrison & Foerster's Anna Pinedo discusses the basics of PIPE transactions in this ThinkingCapMarkets podcast.
Read more about PIPE transactions in our popular FAQs, which can be accessed here: Frequently Asked Questions about PIPEs.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Morrison & Foerster LLP. All rights reserved
