FriendFinder Networks Seeks $60 Million in Initial Offering

FriendFinder Networks Inc., the publisher of Penthouse magazine, will seek as much as $60 million in an initial public offering after postponing an IPO last year that sought to raise four times that amount.

The Boca Raton, Florida-based operator of websites including and will attempt to sell 5 million shares at $10 to $12 each, according to a filing with the U.S. Securities and Exchange Commission.

FriendFinder postponed an IPO last year that sought to raise as much as $240 million and in 2008 announced plans for an offering of up to $460 million, SEC filings show. The company’s latest plans may be an effort to take advantage of increased interest in U.S. IPOs. At least 31 companies have announced plans for initial share sales this month, the most since August 2007, according to Renaissance Capital LLC, the Greenwich, Connecticut-based IPO investment firm.

Proceeds from the offering will be used to repay lien notes, some of which are held by Chief Executive Officer Marc Bell and Chairman Daniel Staton, according to the prospectus. FriendFinder had total outstanding debt of $542.5 million as of April 15, today’s filing showed, more than the $536 million it reported as of Dec. 31.

The company completed a $551 million debt financing in October after saying it would offer $210 million for Chicago-based Playboy Enterprises Inc. Playboy agreed in January to be taken private by founder Hugh M. Hefner.

New Underwriters

FriendFinder had accumulated net losses of $210 million in the five years through 2010, the prospectus showed. Net revenue for the year ended Dec. 31 was $346 million, while the net loss was $43.2 million, according to the filing.

Imperial Capital Group Inc. of Los Angeles and Ladenburg Thalmann Financial Services Inc. of Miami are leading the offering, reflecting a change from the underwriters on last year’s proposed IPO. At that time, Moscow-based Renaissance Capital, which has no affiliation to the Connecticut firm mentioned above, and Ledgemont Capital Group LLC of New York were listed in the prospectus.

The shares are expected to price May 11, according to data compiled by Bloomberg, and will list on the Nasdaq Stock Market under the symbol FFN.

Bell didn’t immediately respond to an e-mail and phone call requesting comment.

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