Lionbridge Technologies Inc., a money-
losing Internet company that produces foreign language versions
of software and advertising, sold $67.1 million of shares to
repay debt.
Lionbridge sold 11 million shares at $6.10 each, a 4.2
percent discount to the stock’s closing price of $6.37 on Thursday.
Friedman Billings Ramsey Group Inc. managed the sale that fetched
fees of as much as $3.7 million.
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Lionbridge, based in Waltham, Massachusetts, had a net loss
of $229,000 in the first three months of this year and lost $1.9
million last year. The company had total debt of $27.2 million as
of the first quarter and its debt to equity ratio was 1,720
percent, according to Bloomberg data.
A 22 percent gain in the Standard & Poor’s 500 Index from
its March low is encouraging more companies to sell stock. Equity
sales in the U.S. in the first-half were $27.9 billion. Bankers
at J.P. Morgan Chase & Co., the second-biggest U.S. bank by
assets, expect initial public share sales and secondary sales in
the second-half to surpass that amount.
Lionbridge shares may have more than tripled since the
beginning of the year compared to the 11 percent gain in the
Standard & Poor’s 500 Index.
Lionbridge sold shares in an initial public offering in
August 1999, in a sale managed by Prudential Securities Inc., and
has never made money.
Bloomberg News
