The market for initial public offerings may be stagnant, but the market for secondary stock and debt offerings sure is heating up.The market for initial public offerings may be stagnant, but the market for secondary stock and debt offerings sure is heating up. In recent days, many tech highfliers have floated debt and stock offerings in a move to fill their coffers. These offerings havent exactly been chump change either. Ciena (Nasdaq: CIEN) raised $1.5 billion last week by floating 11 million shares in a secondary offering and selling $600 million in convertible notes. A convertible bond is a hybrid security that usually offers current income and can be converted into company stock. Exodus Communications (Nasdaq: EXDS) raised $800 million in a secondary and convertible debt offering.
And those companies arent alone. Adelphia Communications (Nasdaq:ADLAC), Intuit (Nasdaq: INTU) and XO Communications (Nasdaq: XOXO) have also either raised cash or announced plans to float securities.