Globe Specialty Metals (GSM)

TOP CONTRIBUTORS

Vikram Parsani

Globe Specialty Metals (NASDAQ:GSM) produces and sells silicon metal and silicon-based alloys. With 156,400 metric tons of silicon metal capacity and 72,800 metric tons of silicon-based alloys capacity, the company currently accounts for 77% of total U.S. capacity, 61% of total North American capacity and 18% of total “Western World” capacity for silicon metal.^[1] The expansion and reopening of the company's Niagara Falls facility in New York during FY2010 will increase its silicon metal capacity by 19% to 186,400 metric tons.^[1]

The company's initial public offering (IPO) of stock is scheduled for 30 July 2009. It plans to sell 14.0 million shares at between $7.00 and $9.00 per share. Existing investors in the company include Luxor Capital Group (19% before, 13% after), executive chairman Alan Kestenbaum (16% before, 15% after), Plainfield Asset Management LLC (15% before, 10% after) and D.E. Shaw Laminar International, Inc. (11% before, 9% after).^[2]

In 2009, Globe Specialty Metals had $345 million in total revenues, up 9% from $317 million in 2008.^[3] However, it still made a net loss of $44 million, down 339% from the $18 million net income the company made in 2008.^[3] The company attributed this to extraordinary goodwill and intangible asset impairments of its Solsil business segment. As of 31 March 2009, 65% of total revenues came from customers in the United States, 21% from Europe, 10% from South America and 4% from Asia (including Australia).^[1]

References

1. ↑ ^{1.0 1.1 1.2} Business, 2009 GSM S-1/A Pg 65
2. ↑ Principal and Selling Stockholders, 2009 GSM S-1/A Pg 102
3. ↑ ^{3.0 3.1} Selected Consolidated Financial Data, 2009 GSM S-1/A Pg 35