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Article: Debt offerings come to the Alley ;Dot-com firms turn to borrowing as market shuns secondary offerings.(Brief Article)(Statistical Data Included)
- Article from:
- Crain's New York Business
- Article date:
- January 31, 2000
- Author:
CopyrightCOPYRIGHT 2000 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Instead of high-flying IPOs, Silicon Alley is kicking off the new year with a flurry of less glamorous debt offerings.
Junk bond deals by EarthWeb Inc., Globix Corp. and Mail.com Inc. may signal a shift toward borrowing by local dot-coms as the market for equity offerings softens.
Like capital from their equity offerings, proceeds from the debt deals will help fund aggressive acquisition strategies and internal expansion by these companies.
EarthWeb's $86 million debt offering last week was a way to raise additional capital without further diluting its stock. "This is a way of getting new investors into the company," says Irene Math, EarthWeb's ...