Actionable Ideas for Companies and Sponsors
Using ATMs To Provide Immediate Access To Equity Capital
In the volatile markets we are currently experiencing, the ATM (At-The-Market) equity product provides immediate access to equity capital to strengthen balance sheets and improve liquidity when traditional equity capital raising alternatives may not be available. An ATM allows a company to discretely sell primary stock into the market with complete control over timing, price and volume of shares sold. The only upfront disclosure for an ATM is the filing of a sales agency agreement that includes the maximum dollar amount to be sold under the program. Public disclosure of the primary stock sales occurs in the company’s subsequent quarterly filings.
Since volatility started to move higher around February 20th, 55 ATMs have been filed with the potential to raise over $10 billion in primary equity proceeds. These ATM filings have occurred across most sectors including, real estate, healthcare, technology, energy, utilities, industrials, and financial services. Jefferies has filed 33% of these ATM programs and remains the industry leader in the ATM product.