MB Communications Plans Stock Offering

MB Communications Inc., the parent company of Micom Communications Corp. in Simi Valley, says it plans an initial public stock offering that it hopes will raise up to $32.5 million in gross proceeds.

The company said it filed a registration statement with the Securities and Exchange Commission to offer 2.5 million common shares, which MB Communications expects will be priced between $11 and $13 a share.

Proceeds from the offering would be used to pare MB Communications’ debt, much of which was incurred in late 1988 when an investor group led by Odyssey Partners in New York acquired Micom through a $334-million leveraged buyout, meaning most of the cash was borrowed.

If the proposed stock offering is successful, Odyssey’s stake in the company would drop to 48% from 57%, assuming the exercise of certain warrants outstanding.

Micom makes equipment that enables computers and other electronic products to be connected in a network. MB Communications also owns Black Box Corp., which sells computer-related products by mail.