Financings in Brief: Palomar Medical Technologies
This article was originally published in The Gray Sheet
Executive Summary
Palomar Medical Technologies: Plans to spin out a portion of its Nexar personal computer business via an initial public offering of 2.5 mil. shares of common stock at $11-13 each. Anticipated proceeds of $25.9 mil. (assuming a price of $12) would go toward debt repayment -- including about $8.2 mil. to Palomar -- and general corporate purposes. Nexar contributed $18.7 mil. to Palomar's total 1996 revenues of $70.1 mil. The spin-out would reduce Palomar's stake from 87.4% to approximately 67.4%, according to a March 5 preliminary prospectus for the offering. The transaction is expected to be complete by mid-April, Palomar says...