Apollo Cashes Out With Metals USA
Zachary Scheidt submits:
MUSA)" hspace="6" vspace="6" width="200" height="54" />Late last week Metals USA Holdings Corp (MUSA) made it’s stock debut being offered to the public at $21.00 per share. The deal was relatively small with just 11.4 million shares being offered and a broad assortment of underwriters took the lead in distributing the shares to the public. Recently, new issues have performed well in the after-market but MUSA was an exception. It may be that the underwriters reached too far on this one, setting the bar a bit too high with the $21 offer price.While at first blush the prospectus states that the shares are primary (with the shares being distributed to the company) further reading highlights the fact that private equity holders will actually retain the majority of funds from this transaction. In no more than 60 days, the company is required to make an offer to purchase Payment In Kind (or PIK) notes which are held by the asset manager Apollo Group and some of its subsidiaries. So while all the information is public, it appears this is a bit of a stealth deal to allow Apollo to cash out.Complete Story »
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