This week's IPOs include: Backcock and Brown Air Ltd. (NYSE:FLY), a company formed by Babcock and Brown to acquire and lease commercial aircraft; Duff & Phelps (NYSE:DUF) a provider of independent financial advisory and investment banking services; and Venture Financial Group (VNBK), the bank holding company for Venture Bank, a Washington state-chartered bank.
All quotations are from the companies' most recent S-1 filings with links provided.
BABCOCK AND BROWN AIR LIMITED (FLY)
Business Overview (from prospectus)
We are a newly organized company formed by Babcock & Brown to acquire and lease commercial jet aircraft and other aviation assets. Our aircraft are leased under long-term contracts to a diverse group of airlines throughout the world. Our strategy is to grow our portfolio through accretive acquisitions of aircraft and to increase our distributable cash flows, while paying regular quarterly dividends to our shareholders.Offering: 18.7 million shares at $22.00 - $24.00 per share. Net proceeds of approximately $1,596.4 million will be used to pay for formation expenses and for general corporate purposes.
Lead Underwriters: Morgan Stanley, Citi, Merrill Lynch
Operating lease revenues increased to $56.6 million in 2006 from $0.6 million in 2005...Depreciation increased to $18.0 million in 2006 compared to $0.2 million in 2005...Interest expense, net and interest expense – related party increased to $43.0 million in 2006 compared to $0.7 million in 2005 as a result of additional interest cost from the debt funding of the additional investment in aircraft in 2006 of $854.7 million.
DUFF & PHELPS CORPORATION (DUF)
Business Overview (from prospectus)
We are a leading provider of independent financial advisory and investment banking services. Our mission is to help our clients protect, maximize and recover value. The foundation of our services is our ability to provide independent advice on issues involving highly technical and complex assessments of value. We principally support client needs in financial and tax valuation (especially in the context of business combinations and other corporate transactions), mergers and acquisitions ("M&A"), restructuring and litigation and disputes. We believe the Duff & Phelps brand is associated with a high level of professional service and integrity, knowledge leadership and independent, trusted advice. With over 680 highly experienced and credentialed client service professionals at June 30, 2007, we serve a global client base through offices in 21 cities, comprised of offices in 15 U.S. cities, including New York, Chicago and Los Angeles, and six international offices located in Amsterdam, London, Munich, Paris, Tokyo and Zurich.
Offering: 8.3 million shares at $16.50 - $18.50 per share. Net proceeds of approximately $129.3 million will be used to redeem approximately $137.9 million of New Class A Units held by the existing unitholders of D&P Acquisitions, to repay debt, and for general corporate purposes.
Lead Underwriters: Goldman Sachs, UBS Investment Bank
Revenues, excluding reimbursable expenses, increased $172.8 million, or 233.8%, to $246.7 million for the year ended December 31, 2006 from $73.9 million for the year ended December 31, 2005...Operating expenses increased $48.7 million, or 176.8%, to $76.3 million for the year ended December 31, 2006 from $27.6 million for the year ended December 31, 2005...Operating income increased $26.4 million, to $16.3 million for the year ended December 31, 2006 from $(10.1) million for the year ended December 31, 2005...Adjusted EBITDA increased $33.2 million, to $44.1 million for the year ended December 31, 2006 from $10.8 million for the year ended December 31, 2005.
VENTURE FINANCIAL GROUP (VNBK)Business Overview (from prospectus)
We are the bank holding company for Venture Bank, a rapidly growing Washington state-chartered bank. We foster an entrepreneurial, innovative culture focused on creating (i) a positive environment for employees, (ii) a unique customer experience and (iii) superior results for our shareholders...We operate 18 full-service financial centers located primarily along the Interstate 5 corridor in the Puget Sound region of western Washington. We were established in 1979 and have grown through a combination of de novo branching and acquisitions. Since 1993, we have completed the following acquisitions:
Offering: 1.8 million shares at $21.00 - $23.00 per share. Net proceeds of approximately $36.2 million will be used to finance acquisitions, open new branches, pay off debt, and for capital expenditures.
Lead Underwriters: Keefe Bruyette Woods, D.A. Davidson
Our net income grew by 22.6% to $11.1 million for the year ended December 31, 2006 as compared to $9.0 million for the year ended December 31, 2005... Net interest income in 2006 increased over 2005 by $7.4 million or 25.9%. In 2006, net interest income increased largely from the increased volume in loans and investments coupled with the fact that the volume of assets earning interest increased at a faster rate than interest-earning liabilities...Total interest income earned from loans in 2006 increased by $19.7 million; the net effect of an increase of $14.8 million due to an increase in the average volume of loans during the year plus an increase in the average yield on loans of $4.9 million.