A Seattle-based gas and electricity infrastructure company, managed by Tenaska, is to seek up to $290 million via an initial public offering.
InfrastruX, which is owned by the Tenaska Power Fund, a vehicle managed by Tenaska Capital Management, the private equity fund management arm of the Nebraska-based power company, made the filing yesterday to the United States Securities and Exchange Commission.
Attractive acquisition opportunies will continue to be available due to the fragmented nature of our industry
SEC filing by InfrastruX
It is the latest example of private equity firms trying to take advantage of an IPO market that is showing signs of life following a period of stagnation.
Last week, Avago Technologies, US and Asian supplier of communication technologies part-owned by New York-based private equity firm Kohlberg Kravis & Roberts, launched a $648 million IPO.
The filing by InfrastruX, which invests in power generation and offers services including project management and equipment, maintenance, construction, and repair services, did not reveal any terms for the fundraising.
The company said it planned to use the proceeds of the IPO to pay down debt. In addition, it intends to “complement our organic growth” and to “continue to search for attractive acquisition opportunities that expand our geographic presence, enhance our service offerings and increase our customer base”.
In terms of investment, the filing said: “We are particularly interested in opportunities that would expand our electric power [transmission and distribution] services or provide turn-key program management. We are also interested in technology-based services, including those that complement our CableCURE offering.”
The company, founded in 2000, added: “Geographically, we anticipate focusing on expanding the breadth and depth of our service offerings around our existing regional centers of operation in the Southwest, Midwest and East, as well as expanding our geographic reach into the West Coast.”
“We believe that attractive acquisition opportunities will continue to be available due to the fragmented nature of our industry, the desire for many business owners to achieve liquidity and the difficulty many companies face in modernizing and expanding due to capital constraints, particularly under current financial market conditions.”
The lead book runners for the IPO are Credit Suisse and UBS Investment Bank.