RAISING THE BAR IN AT-THE-MARKET (ATMs) OFFERINGS: THE CERTAINTY OFFERED BY PRINCIPAL-TYPE ATM TRANSACTIONS

At-the-market (ATMs) offerings have become a popular financing tool in today’s volatile market. Earlier this year, Bank of America completed its own ATM of $13.5 billion in perhaps the largest ATM conducted to date. In an ATM, a public issuer sells, through an intermediary, new equity into the market at prevailing market prices – hence the name “at-the-market” offering. In a rising market, ATMs often result in equity being sold at increasing prices. This results in less dilution than in traditional equity raises conducted at a single time and single price.

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