INAP Announces Pricing of Public Offering of Common Stock
October 19 2018 - 9:17AM
Internap Corporation (NASDAQ: INAP) announced today the pricing of
an underwritten public offering of 4,210,527 shares of common stock
at a public offering price of $9.50 per share. The gross proceeds
from the sale of the common stock, before underwriting discounts
and other offering expenses, are expected to be approximately $40
million. The offering is expected to close on or about October 23,
2018, subject to customary closing conditions. INAP granted the
underwriters a 30-day option to purchase up to 631,579 additional
shares of common stock on the same terms and conditions as the
shares offered in the public offering.
Jefferies and Credit Suisse acted as joint
book-running managers for the proposed offering. Craig-Hallum
Capital Group, Raymond James and The Benchmark Company acted as
co-managers. INAP intends to use the net proceeds of the
offering of shares to repay the outstanding amounts under its
revolving credit facility and the balance of the net proceeds for
general corporate purposes, including but not limited to working
capital, capital expenditures, acquisitions and other business
opportunities.
A shelf registration statement relating to these
securities has been filed with the U.S. Securities and Exchange
Commission (“SEC”). The offering is being made only by means of a
written prospectus and a prospectus supplement forming a part of
the effective shelf registration statement. A
preliminary prospectus supplement relating to the offering was
filed with the SEC on October 18, 2018, and a final prospectus
supplement relating to the offering will be filed with the SEC.
Copies of the final prospectus supplement and accompanying
prospectus relating to the offering may be obtained via EDGAR on
the SEC’s website at www.sec.gov; by contacting Jefferies LLC,
Attention: Equity Syndicate Prospectus Department, 520 Madison
Avenue, New York, NY 10022, by e-mail at
prospectus_department@jefferies.com or by telephone at (877)
821-7388; or by contacting Credit Suisse Securities (USA) LLC,
Attention: Credit Suisse Prospectus Department, 11 Madison Avenue,
New York, New York, 10010, by e-mail at
newyork.prospectus@credit-suisse.com or by telephone at (800)
221-1037.
This press release shall not constitute an offer
to sell, or the solicitation of an offer to buy, these securities,
nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale is not
permitted.
About INAP
Internap Corporation (NASDAQ: INAP) is a global
provider of high-performance data center services, including
colocation, cloud and network. INAP partners with its customers,
who range from the Fortune 500 to emerging start-ups, to create
secure, scalable and reliable IT infrastructure solutions that meet
the customer’s unique business requirements. INAP operates in 56,
primarily Tier 3, data centers in 21 metropolitan markets and has
99 POPs around the world. INAP has over 1 million gross square feet
in its portfolio, and approximately 600,000 square feet of sellable
data center space.
Forward-Looking Statements
This press release contains forward-looking
statements. These forward-looking statements include statements
related to the offering of our common stock and the use of proceeds
from such offering. Our ability to achieve these forward-looking
statements is based on certain assumptions, including our ability
to execute on our business strategy, leveraging of multiple routes
to market, expanded brand awareness for high-performance IT
infrastructure services and customer levels. These assumptions may
prove inaccurate in the future. Because such forward-looking
statements are not guarantees of future performance or results and
involve risks and uncertainties, there are important factors that
could cause INAP’s actual results or actions to differ materially
from those expressed or implied in the forward-looking statements,
due to a variety of important factors. Such important factors
include, without limitation: to drive growth while reducing costs;
our ability to maintain current customers and obtain new ones,
whether in a cost-effective manner or at all; the robustness of the
IT infrastructure services market; our ability to achieve or
sustain profitability; our ability to expand margins and drive
higher returns on investment; our ability to sell into new and
existing data center space; the actual performance of our IT
infrastructure services and improving operations; our ability to
correctly forecast capital needs, demand planning and space
utilization; our ability to respond successfully to technological
change and the resulting competition; the geographic concentration
of the company’s data centers in certain markets and any adverse
developments in local economic conditions or the demand for data
center space in these markets; ability to identify any suitable
strategic transactions; INAP's ability to realize anticipated
revenue, growth, synergies and cost savings from the acquisition of
SingleHop LLC (“SingleHop”); INAP's ability to successfully
integrate SingleHop’s sales, operations, technology, and products
generally; the availability of services from Internet network
service providers or network service providers providing network
access loops and local loops on favorable terms, or at all; failure
of third party suppliers to deliver their products and services on
favorable terms, or at all; failures in our network operations
centers, data centers, network access points or computer systems;
our ability to provide or improve Internet infrastructure services
to our customers; our ability to protect our intellectual property;
our substantial amount of indebtedness, our possibility to raise
additional capital when needed, on attractive terms, or at all, our
ability to service existing debt or maintain compliance with
financial and other covenants contained in our credit agreement;
our compliance with and changes in complex laws and regulations in
the U.S. and internationally; our ability to attract and retain
qualified management and other personnel; and volatility in the
trading price of INAP common stock.
These risks and other important factors
discussed under the caption “Risk Factors” in our most recent
Annual Report on Form 10-K filed with the SEC, and our other
reports filed with the SEC could cause actual results to differ
materially from those indicated by the forward-looking statements
made in this press release.
Given these risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a
prediction of actual results. All forward-looking statements
attributable to INAP or persons acting on its behalf are expressly
qualified in their entirety by the foregoing forward-looking
statements. All such statements speak only as of the date made, and
INAP undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Contacts
Richard RamlallVP, IR & PR
INAP404-302-9982ir@inap.com
Carolyn Capaccio/Jody
BurfeningLHA212-838-3777inap@lhai.com
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