Method for companies to raise additional capital

• In US, typically only used by mutual funds and by distressed companies
• Often used in foreign countries such as England

Rights offering by Puerto Rican bank

• Issued non- transferable rights to purchase common stock
• Backstopped by a potential underwritten offering,
  if undersubscribed
• UBS / Popular Securities
• Sullivan & Cromwell / Sidley Austin

SEC Filings

Rights offering by cosmetics company

• Issued fully transferable rights to purchase common stock
• Part of plan to recapitalize the company
• Principal stockholder (MacAndrews & Forbes)
  had agreed to back-stop the rights offering
• Offering was fully subscribed, vitiating need for back stop

Announced 2.05.03

Completed 6.20.03

Prospectus 5.12.03

Deals