Silver Spring Network Strengthens IPO Push By Announcing Foundation Capital Private Placement

Silver Spring Networks signaled its determination to complete an initial public offering by announcing a planned $12-million private placement with its largest shareholder, Foundation Capital.

Foundation Capital will purchase the shares in conjunction with the expected IPO at the same public price or one similar to it, according to a revised S-1 filed with the Securities and Exchange Commission on Friday. The move could help strengthen demand for the stock by showing Foundation’s willingness to stick with the company.

Silver Spring’s offering, announced in July 2011, has been among the most closely watched cleantech deals. The company initially projected an offering size of as much as $150 million, but revisions to its S-1 have failed to include this target, suggesting the size could change.

Foundation already owns 54.5 million shares of the company, or 41.2%, according to the latest S-1. Kleiner Perkins Caufield & Byers, the second largest holder, owns 12.6 million shares, or 9.7%.

According to the new document, all is not rosy at the smart meter infrastructure company. The company had previously said revenue for the second half of 2012 could fall below 2011 levels.

Its latest S-1 added that revenue for the fourth quarter could be down substantially from preceding quarters and that billings could slump as well.

Revenue for the June quarter was $51.6 million, down from $68.8 million a year ago. Sales in the March quarter were up 19%. The June quarter net loss was $23.4 million.

Photo of smart meter courtesy of Shutterstock.