First Wind cancels IPO
First Wind, the state's largest wind farm developer, has canceled its plans to go public after failing to attract a high enough price from investors.
Massachusetts-based First Wind had hoped to raise up to $312 million through its initial public offering of 12 million shares priced at $24 to $26 each. On Wednesday, it slashed the price 25% to between $18 and $20 a share for a total of $228 million, but investors didn't bite. The company pulled the plug on the IPO yesterday, the Portland Press Herald reported. "While we received significant interest from potential investors during the marketing of our IPO, the terms that the IPO market was seeking at this time were not attractive to the company," First Wind CEO Paul Gaynor said in a statement.
First Wind had planned on using money raised through the IPO to pay off loans and fund project development costs through 2013. As of the last quarter, the company owed nearly $516 million for its wind projects. A company spokesman told the paper it will continue building wind farms in Maine despite the failed IPO, but acknowledged that it has yet to arrange financing for its 40-turbine Rollins wind farm under construction near Lincoln.
First Wind operates the Mars Hill Wind farm in northern Maine and the two-phase Stetson Wind project in Washington County. It has also proposed a wind farm in Kingsbury Plantation in Piscataquis County and another on Bowers Mountain on the Washington-Penobscot county line.
Go to the article in the Portland Press Herald >>
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