Extreme Networks files to sell 6.5 mln shares
WEDNESDAY, SEPTEMBER 29, 1999 7:11 PM
- Reuters
WASHINGTON, Sept 29 (Reuters) - Extreme Networks Inc. (NASDAQ:EXTR),
provider of switching for local area networks, filed Wednesday to sell 6.5 million
shares, a Securities and Exchange Commission filing showed.
The company plans to sell 1.275 million shares while stockholders including
Gordon Stitt, the company's president, chief executive officer, and chairman as
well as others, will sell the remaining 5.225 million shares, the filing said.
Extreme Networks, based in Santa Clara, Calif., will receive about $80.5 million
from the sale of its shares and said it plans to use the funds for general corporate
purposes, including capital expenditures and working capital.
The company won't receive any of the money from the sale of stockholders'
shares.
The underwriters, Morgan Stanley Dean Witter, BancBoston Robertson Stephens,
Dain Rauscher Wessels, Hambrecht & Quist and SG Cowen, have been allotted
975,000 extra shares in the event of heavy demand.
Extreme Networks' shares closed up 5/16 to 66-15/16 on Nasdaq.
((Jeremy Pelofsky, 202-898-8399))
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