Jerry Moyes sale 25% discount to 07 IPO LBO rapid transit

Jerry Moyes, who took control of Swift Transportation Co., a leveraged buy 2.37 billion U.S. dollars in 2007, is planning an initial public offering that values the shipping company by 25 percent after three years loss.

the largest airline in North American truck is trying to raise one billion U.S. dollars of sales 67,300,000 Class A shares of $ 13 to $ 15 each in today's second-largest U.S. IPO 2010, according to a filing Securities and Exchange Commission. The midpoint price would give the Phoenix-based company a market value of $ 1,780,000,000. Moyes pays about the same amount in May 2007 involving 74 percent of capital that had.

Moyes, 66, co-founder of Swift in 1966 with one truck. He resigned as executive director in 2005. Now he is selling a 53 percent to help pay the debt after the company reported 678 million U.S. dollars in losses. Swift Transportation's net debt in relation to cash flow more than four times the average for U.S. trucking companies on the stock.

"Investors are very wary of buying anything but a very pristine growth story," said Timothy Cunningham, a money manager in Santa Fe, New Mexico-based Thornburg Investment Management, which oversees about $ 70 billion. Swift is "losing money. It's hard to get excited about that," he said.

Name Change

Morgan Stanley in New York, Bank of America Corp. of Charlotte, North Carolina, and San Francisco, Wells Fargo & Co. are arranging the sale. Swift Transportation, which is changing its name to Swift Holdings Corp., will begin trading on the morning New York Stock Exchange under the ticker SWFT.

Swift Transportation, which had about 16,200 tractors and 48,600 trailers in North America starting in September, reported a net loss of $ 77 million for the first three quarters of 2010.

Moyes, Swift originally took public in 1990, had resigned as president and CEO in October 2005 after paying $ 1.5 million to settle SEC case accusing him of insider trading, without admitting or denying wrongdoing, said the leaflet . The charge related to its purchase of 187,000 shares of Swift in May 2004, days before the company announced better than expected earnings and the population increased 20 percent.

NHL team

Moyes sold Phoenix Coyotes National Hockey League NHL's $ 140 million in November 2009 after the team filed for bankruptcy protection under Chapter 11 in May of that year.

In March, the NHL Moyes sued for breach of contract, aiding and abetting the violation of fiduciary duty and the Coyotes try to sell without the consent of the NHL, seeking damages of at least $ 60 million, said the leaflet. Moyes has filed a motion to dismiss the claims in the NHL.

Dave Berry, vice president of Swift Transportation that deals with questions from the press of Moyes, said executive director was unavailable for comment.

Moyes, who graduated from Weber State University in Ogden, Utah, in 1966 with a degree in business administration, earned $ 1.6 million CEO of Swift Transportation over the past three years, the company's prospectus said. He was also president of Simon Transportation Services Inc., the trucking company that filed for bankruptcy in 2002.

Swift Transportation had $ 2,330,000,000 in debt over cash at the end of September and generated $ 341 million in earnings before interest, taxes, depreciation and amortization in the first nine months of 2010, its prospectus said.

Relative Value

Swift Transportation That would give 5.13 times the net debt to cash flow for a full year, more than four times the average net debt to EBITDA of 1.12 by 23 U.S. trucking companies on the stock .

Neither Werner Enterprises Inc., of Omaha, Nebraska, and Phoenix-based Knight Transportation Inc., Swift Transportation cited as competitors of Marina del Rey, California-based IPOdesktop.com, had a debt in late September.

Swift Transportation is "obviously a company that is struggling," said Michael Yoshikami, which oversees $ 1,000,000,000 in YCMNet Advisors in Walnut Creek, California. "If you're investing in a company with a lot of losses in a high growth rate is not on the table is a significant risk."

GM, ISoftStone

The IPO would be the second largest in U.S. this year after Detroit-based General Motors Co. 's 18.1 billion U.S. dollars in common stock sale last month. try to Swift is one of 11 scheduled for this week, the busiest period since December 2007, according to the data.

First IPO of the week came from ISoftStone Holdings Ltd., a Beijing-based technology service provider information that raised 141 million U.S. dollars yesterday. The stock rose 36 percent to $ 17.70 at 9:41 am in the market for New York Stock Exchange today.

ISoftStone sold 10,830,000 American Depositary Receipts at $ 13 each, the top of its forecast range, according to its filing with the SEC. The sale was the 40 th IPO of a U.S. company mainland China in 2010, capping a record year surpassing the 37 agreements in 2007, according to the data.