High-speed Internet access firm StarBand files IPO
biz.yahoo.com
WASHINGTON, Oct 11 (Reuters) - StarBand Communications Inc., a provider of high-speed Internet access via satellite and a joint venture between Gilat Satellite Networks Ltd. (NasdaqNM:GILTF - news), EchoStar Communications Corp. (NasdaqNM:DISH - news) and Microsoft Corp. (NasdaqNM:MSFT - news), on Wednesday filed to go public.
StarBand is looking to raise as much as $287.5 million in an initial public offering of common stock, using the net proceeds to fund continued growth of business and operations, expand subscriber base, and for general corporate purposes, it said in a filing made with the Securities and Exchange Commission.
The number of shares and their estimated price range will be disclosed later by the company, which has applied for a Nasdaq listing under the symbol ``STRB'' (Nasdaq:STRB - news). The $287.5 million figure cited in the filing was done merely to calculate the SEC registration fee, the company said.
Merrill Lynch will manage the IPO with assistance from Credit Suisse First Boston, Salomon Smith Barney, CIBC World Markets and ING Barings.
Microsoft has agreed to sell high-speed Internet access, using StarBand's wholesale service through more than 7,000 RadioShack Corp. (NYSE:RSH - news) locations.
Gilat, with a 44.7 percent stake through its wholly-owned subsidiary Spacenet Inc., will supply advanced networking technology.
EchoStar, a U.S. direct broadcast satellite firm with more than 4.5 million subscribers, has agreed to co-market both high-speed Internet and television services in a bundled package.
Microsoft and EchoStar each hold a 19 percent stake in the McLean, Va.-based company, the SEC filing shows.
It added that it could lose access to equipment and technology if Hughes Electronics Corp. (NYSE:GMH - news) prevails in a lawsuit against Gilat and Spacenet concerning a patent for personal computer-based receiver cards that Gilat sells to StarBand.
The company generated revenues of $7,000 since its inception on Jan. 11 through Aug. 31 and posted a net loss of $66.8 million, according to the prospectus. |
