S&P SmallCap 600 in Focus: SPF MNC

Standard Pacific Corp. shares surged more than 50 percent on Tuesday after it received an equity investment of $530 million from affiliates of a private equity firm, helping send the Standard & Poor's SmallCap 600 Index higher at midday.

The S&P SmallCap 600 _ which tracks stocks with a market capitalization between $300 million and $2 billion _ advanced 1.09 points to 384.05 at 12:30 p.m.

Small-cap companies make up about 3 percent of the total U.S. securities market, but are often cited as good investments due to their low valuations and potential to grow into big-cap stocks.

Homebuilder Standard Pacific climbed $1.13, or 51 percent, to $3.35. On Tuesday, the company said it reached a deal with affiliates of private equity firm MatlinPatterson Global Advisers LLC, in which the affiliates will receive $381 million in preferred stock, which is convertible to 125 million shares of common stock at a price of $3.05 per share.

The company will also issue 50 million more shares of common stock priced at $3.05 to raise $152.5 million more. The price represents a 37 percent premium on Standard Pacific's Friday closing price of $2.22.

Earlier in the session, the stock soared as much as 70 percent to $3.78.

Guaranty Financial Group Inc. advanced 81 cents, or 15 percent, to $6.24. The regional bank said Tuesday a unit of private equity firm TRT Holdings Inc. will buy $38.4 million in its common stock, eventually giving the firm a 19.9 percent stake in the company.

Polaris Industries Inc. advanced $3.75, or 8.8 percent, to $46.44. The recreational vehicle manufacturer was upgraded to "Neutral" from "Sell" by FTN Midwest Securities Corp. in a Tuesday note to investors.

Among the decliners, towable vehicle maker Monaco Coach Group plunged 49 cents, or 10.4 percent, to $4.24 after earlier hitting a fresh 52-week low of $4.17.

United Community Banks Inc. declined $1.32, or 9.9 percent, to $12.01. A Sterne Agee analyst downgraded the regional bank to "Sell" from "Hold," citing its exposure to weak real estate markets.

Pediatrix Medical Group tumbled $4.61, or 8.3 percent, to $50.82 after bottoming at $45.20, a fresh 52-week low, earlier in the session. The company cut its second-quarter and full-year outlook on a decline in neonatal intensive-care unit patients.