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.