BUZZ-ORBCOMM Inc: CalPERS exits remaining stake

Wed Aug 19, 2015 1:41pm EDT
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** Global machine-to-machine communication provider's shares up 1.7 pct at $6.00 as long-time sponsor CAlPERS Corporate Partners divests its remaining stake

** Company filed 3.9 mln share secondary offering after market close on Tuesday (

** Sources cite sole underwriter Raymond James priced shares at $5.75, a 2.5-pct discount to Tuesday's $5.90 close

** Offering follows an April filing noting No. 4 holder's intention to sell 5.6-pct of ORBC's 70.5 mln shares outstanding

** CalPERS had acquired shares in private placement financings prior to co's Nov 2006 IPO, which priced at $11; state pension fund was a 14.4-pct owner post the offering

** On Aug 6 ORBCOMM posted a bigger-than-expected Q2 loss due to FX headwinds, but co reaffirmed its full-year revenue guidance of $174-$194 mln and EBITDA guidance of $40-$45 mln

** All eight covering analysts recommend buying the stock with PTs in range of $8-$10

** ORBC's significant customers include OEMs Caterpillar Inc and Komatsu Ltd, as well as Canadian National Railway, Hub Group Inc, Target Corp and Walmart Stores

** Stock down 4.4 pct over last 12 months (RM: