News Article

Insulation company Aspen Aerogels looks to go public
Date: May 01, 2014
Author: David Harris
Source: bizjournals ( click here to go to the source)

Featured firm in this article: Aspen Aerogels Inc of Northborough, MA

David Harris
Tech Editor- Boston Business Journa

Aspen Aerogels, a Northborough-based maker of highly-efficient insulation, filed plans this week to go public.

According to a regulatory filing, the company plans to raise a total of $86.3 million through the IPO. No information was available about how much the shares would be priced. Barclays Capital Inc., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are acting as joint book-running managers of the proposed offering.

The company has raised more than $55 million, all of it in debt financing. According to the filing, the company's product revenue has grown from $17.2 million in 2008 to $82.1 million in 2013.

The company had initially sought an initial public offering in 2011, but withdrew those plans last year.

Founded in 2001, Aspen Aerogels markets aerogel technology for insulation in a variety of markets, including oil and gas; building and construction; outdoor gear and apparel; solar thermal; appliances; and transportation. The company manufactures its products using proprietary technology at a facility in East Providence, Rhode Island.

The company said in the filing that it intends to use the funds from the IPO to pay for expenditures necessary for the design, development and construction of its third production line in its East Providence, R.I., facility; to repay amounts outstanding under its revolving line of credit, which is payable in July 2014; and for "general corporate purposes," which will include funding a portion of the design, development and construction of a planned second production plant in Europe or Asia.

Previous backers of the company have included BASF Venture Capital GmbH, the venture arm of German chemical giant BASF, as well as RockPort Capital Partners, Tenaya Capital, Reservoir Capital Group, Arcapita Ventures and Argonaut Private Equity.