The Deal Reports PIPE Market Shrinks With Volatility

NEW YORK, Jan. 16, 2015 /PRNewswire/ -- The Deal, TheStreet's TST institutional business, has issued a quarterly report that shows that 293 private-investments-in-public-equity (PIPEs) worth $22.1 billion were announced or completed in the fourth quarter, compared with 297 that raised $10.9 billion in the same period a year ago. The figures, generated with The Deal's PrivateRaise database, exclude PIPEs that raised less than $1 million and those by foreign companies that only trade over the counter in the U.S.

"The market grew more volatile in October with the rise of the terrorist group Islamic State and the Ebola outbreak in Africa," said Dan Lonkevich, Senior Editor for The Deal. "Volatile markets make it harder for PIPE-issuing companies and investors to negotiate pricing."

Some highlights from the report include:

• 293 PIPE transactions raised $22.1 billion in the fourth quarter of 2014.
• The number of unregistered PIPEs rose to 213 deals worth $10.4 billion from 201 worth $4.61 billion.
• The fourth quarter included only 15 confidentially marketed public offerings worth $621.1 million, compared with 38 worth $1.34 billion, a year ago.
• The quarter included 48 at-the-market offering facilities worth as much as $12.4 billion compared with 39 worth up to $4.88 billion a year earlier. The maximum amounts available under ATM facilities are rarely fully taken down.
• As usual, healthcare was the most active industry in the PIPE market, with 101 deals worth $2.07 billion. Technology was the second-most-active industry, with 38 deals worth $665.4 million. Energy was the third-most-active industry, with 36 deals worth $13.2 billion.
• For the full year, 2014 produced the most PIPEs in seven years and raised the most money in six.
• Companies announced at least 1,156 PIPEs last year, compared with 1,076 in 2013. The number of PIPEs was the most since 1,632 in 2007, the year before the financial crisis.
• PIPEs raised $57.8 billion in 2014. That was the most since 2008 when companies raised a record $118.5 billion as financial companies used PIPE financing structures to recapitalize after massive loan losses.

The full report is available online.  For more information on PrivateRaise, visit www.privateraise.com.

About The Deal

The Deal is a media and relationship capital company providing over 100,000 users with business opportunities sourced from proprietary deal news and a relationship discovery tool. Law firms, investment banks, private equity and hedge funds use The Deal's insight and analysis about potential and announced transactions to find their next deal and BoardEx's service and database for building relationships. The Deal is the institutional arm of TheStreet, Inc. and has offices in New York, London, Washington, D.C., Petaluma, CA and Chennai, India. For more information, visit www.thedeal.com.

Photo - http://photos.prnewswire.com/prnh/20140306/NY78400LOGO

Contact: Emily Scheer, TheStreet, Inc., emily.scheer at thestreet.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-deal-reports-pipe-market-shrinks-with-volatility-300021463.html

SOURCE TheStreet, Inc.