AMERICAS
Bloomberg reported that US casino operator Eldorado Resorts plans to issue new shares, sell some Las Vegas real estate and take other steps to strengthen its finances ahead of the $17bn merger of Caesars Entertainment.
The casino and gaming company is offering as many as 20.7m shares of its stock, with the proceeds going to general corporate purposes. At the closing price of $38.44, that could generate about $800m.
Caesars Entertainment is advised by Deutsche Bank, PJT Partners, Skadden Arps Slate Meagher & Flom and Teneo. PJT Partners is advised by Ropes & Gray. Eldorado is advised by Credit Suisse, JP Morgan, Macquarie Group, Latham & Watkins, Milbank and JCIR. Financial advisors to Eldorado are advised by Cravath Swaine & Moore. Debt financing is provided by Credit Suisse, JP Morgan and Macquarie Group.
Pfizer-backed Viatris, a global generic and speciality pharmaceuticals company, is lining up a potential jumbo bond sale in Europe and the US to help pay for the combination with Mylan. The issuer may sell four euro tranches as long as 12 years, or dollar bonds maturing in up to 30 years.
Plans to combine Pfizer's Upjohn off-patent unit with Mylan were announced last year. New York-based Pfizer will retain 57% of the new business, while Mylan shareholders will get 43%. The deal is due to close this year.
Mylan is advised by Centerview Partners, PJT Partners, Cravath Swaine & Moore, Fangda Partners, NautaDutilh, Stibbe, Wilson Sonsini Goodrich & Rosati and Sard Verbinnen & Co. Pfizer is advised by Goldman Sachs, Guggenheim Partners, Davis Polk & Wardwell, De Brauw Blackstone Westbroek and Wachtell Lipton Rosen & Katz. Financial advisors to Pfizer are advised by Sullivan & Cromwell.
First Horizon National, a bank holding company based in Memphis, and IBERIABANK, an American financial holding company, received a receipt of regulatory approval from the Board of Governors of the Federal Reserve System to complete their merger. The companies expect the merger to be completed on July 1, 2020, pending customary closing conditions.
"We are pleased to receive regulatory approval to merge our two companies. First Horizon and IBERIABANK together will be well-positioned to navigate a changing financial services landscape, deliver superior client solutions, strengthen the communities we serve and create strong returns for our shareholders," Bryan Jordan, First Horizon Chairman and CEO.
IBERIABANK is advised by Evercore, Goldman Sachs, Keefe Bruyette & Woods, Stifel and Simpson Thacher & Bartlett. First Horizon National is advised by Morgan Stanley, Davis Polk & Wardwell, Sullivan & Cromwell and Joele Frank.
Energy firms Equitrans Midstream and EQM Midstream Partners announced that the shareholders of Equitrans approved the issuance of shares in connection with the proposed merger with EQM. More than 99% of the total votes cast at Equitrans' special meeting were voted in favour of approving the stock issuance.
In addition EQM's limited partners voted to approve the merger agreement.
EQM is advised by Evercore and Richards Layton and Finger. Equitrans is advised by Citigroup, Guggenheim Partners and Latham & Watkins. Guggenheim Partners is advised by Gibson Dunn & Crutcher.
EU antitrust regulators will decide by July 20 whether to clear Alphabet-owned Google's $2.1bn bid for Fitbit, a fitness trackers company, a deal that has prompted concerns from consumer groups and privacy advocates, Reuters reported.
The EU competition enforcer can either clear the deal with or without concessions, or it can open a four-month long investigation if it has serious concerns.
Fitbit is advised by Qatalyst Partners, Fenwick & West and Sard Verbinnen & Co. Qatalyst Partners is advised by Cooley. Google is advised by Lazard and Cleary Gottlieb Steen & Hamilton.
Paine Schwartz Partners, a private equity firm focused exclusively on sustainable food chain investing, agreed to invest $150m in AgroFresh Solutions, a provider of produce freshness solutions.
"Through our global investments in fresh produce, Paine Schwartz has developed a long-standing thesis in post-harvest technology. We are excited to target new opportunities in the sector through this strategic investment in AgroFresh. AgroFresh is a leading independent platform that has a diversified network of direct customer relationships, a solutions-based service offering and a leading post-harvest portfolio. We look forward to working closely with Jordi, Graham and the team to enhance operations, drive growth and create value," Kevin Schwartz, Paine Schwartz CEO and Founding Partner.
AgroFresh Solutions is advised by BMO Capital Markets, Greenberg Traurig and ICR. Paine Schwartz Partners is advised by Evercore and Kirkland & Ellis.
Despegar, an online travel company in Latin America, amended its previously announced agreement to acquire Best Day Travel Group, a travel agency in Mexico. These revised terms reflect a reduction from consideration of $136m announced on January 27, 2020, to $76m.
"We are very pleased to announce a revised agreement in connection with our plans to acquire Best Day. This is a significant, strategic acquisition for us, as we continue to consolidate our leading position in the LatAm online travel market. The combination of Best Day's additional product offerings, particularly Destination Services, with Despegar's already broad product offerings and cutting-edge technology, will further enhance our value proposition to our customers. Once completed, this acquisition will allow Despegar to continue leading the shift towards online travel in the region, a trend that is expected to accelerate after the impacts of the ongoing Covid-19 pandemic subside," Damian Scokin, Despegar CEO.
Best Day Travel Group is advised by Cleary Gottlieb Steen & Hamilton. Despegar is advised by Simpson Thacher & Bartlett.
RA Capital to invest $200m in Novavax. (FS)
RA Capital, a multi-stage investment manager, agreed to invest $200m in Novavax, a late-stage biotechnology company, at an effective purchase price per share of common stock equal to the June 12, 2020 closing price.
"The global vaccine effort is searching for candidates that are capable of both generating the highest neutralizing antibody titers and large-scale production. We are excited to increase our investment in Novavax, which along with resources from CEPI and the US Department of Defense, will support Novavax in its important work developing an effective, scalable vaccine for SARS-CoV-2," Peter Kolchinsky, RA Capital Managing Partner.
Novavax is advised by Ropes & Gray and KOGS Communication.
Accel-KKR, a technology-focused private equity firm, agreed to invest in PINC, a supply chain management software company. Financial terms were not disclosed.
"The linkage between transportation and warehousing needs to be more seamless when complexity increases, and strong digital yard management can be a major operational cost driver in improving inventory management, labor costs, asset utilization, sustainability and facility costs. Together with Accel-KKR and its deep domain expertise in supply chain management technology, PINC is well-positioned to become a category leader in a fast-growing field, and ultimately serve the market and our customer base with more innovations and strategic acquisitions. We are tremendously excited about the company's future with Accel-KKR," Matt Yearling, PINC CEO.
Accel-KKR is advised by Kekst CNC.
Redmile Group, a hedge fund and private equity manager, led a $118m Series B round in Shattuck Labs, a clinical-stage biotechnology company, with participation from Janus Henderson Investors, Fidelity Management & Research Company, EcoR1 Capital, Hatteras Venture Partners, Avidity Partners, Partner Fund Management, Emerson Collective and Piper Sandler.
"Over the past four years we have pioneered the development of our proprietary ARC technology platform, which consolidates checkpoint blockade and tumour necrosis factor receptor superfamily agonism into single therapeutics, tackling many of the risks associated with a new biologics platform along the way. The support from this syndicate of experienced life science investors will accelerate clinical development of multiple programs aimed to establish ARC therapeutics as an entirely new class of biologic medicine," Taylor Schreiber, Shattuck CEO.
Shattuck was advised by Stern IR.
B. Riley Financial, a diversified financial services company, withdrew its $231m offer for SPOK, which engages in the provision of communication solutions.
"While we remain very interested in acquiring Spok, we are not willing to hold open an offer for an indeterminate amount of time while the Board rebuffs calls to explore strategic options for a company whose assets have languished under their oversight. As such, we are withdrawing our current proposal to acquire Spok," Bryant Riley, B. Riley Financial Chairman and Co-CEO.
Two private equity firms, KKR and Capitol Peak Partners agreed to acquire Borden Dairy, a dairy processor and distributor. Financial terms were not disclosed.
New Dairy Opco, a joint venture company of KKR and Capitol Peak Partners, won an auction for substantially all of Borden Dairy's assets. To proceed, the deal needs bankruptcy court approval.
SoftBank-backed Greensill Capital, a provider of structured working capital financing, agreed to acquire OmniLatam, a provider of working capital to small and midsize businesses. Financial terms were not disclosed.
"We are delighted to be joining Greensill. Both of our companies were founded with similar business philosophies and ambitions, and this transaction will allow Omni to accelerate our growth plans in the Latin American market, while also benefiting from Greensill's expertise and global capabilities," Diego Caicedo, Omni Co-Founder.
IBM, an American multinational technology company, agreed to acquire Spanugo, a US-based provider of cloud cybersecurity posture management solutions. Financial terms were not disclosed.
"IBM is committed to building the industry's most secure and open public cloud for business. With the acquisition of Spanugo, we have taken another major step in advancing IBM's differentiated capabilities in security and compliance for our enterprise clients, including those in highly regulated industries. Bringing Spanugo's technology into our financial services public cloud will help provide our clients with evidence of their ongoing compliance, in real-time," Howard Boville, IBM SVP, Cloud.
Demandbase, a developer of marketing solutions, agreed to acquire Engagio, an American software company. Financial terms were not disclosed.
"The acquisition accelerates everything I wanted to create in an ABM platform. We will combine Demandbase's strong go-to-market function and technological expertise with Engagio's deep marketing automation and CRM expertise. But it's our shared vision for reimagining both the ABM and B2B martech landscapes that gets me truly excited for the future," Jon Miller, Engagio Co-Founder and Chief Executive Officer.
Authentic Brands considers teaming up with Simon Property Group and Brookfield Property Partners to acquire J.C. Penney. (FS)
Authentic Brands, a brand management company, may team up with Simon Property Group, an American commercial real estate company, and Brookfield Property Partners to acquire J.C. Penney, a bankrupt department-store chain, as part of its court reorganization, Bloomberg reported. The discussions are still fluid and may ultimately end without a deal.
J.C. Penney, which filed for Chapter 11 protection in May, has been racing to firm up a business plan by a July 14 deadline, after which the company risks running out of cash to finance its reorganization and emerge from the bankruptcy court. The company’s proposed exit plan involves creating two new publicly traded entities, including a real estate investment trust that would hold some of the retailer’s property.
BNDES hires BR Partners to divest stake in AES Tiete.
BNDES, the investment arm of the Brazilian development bank, has hired investment bank BR Partners to sell its stake in power company AES Tiete Energia.
BR Partners will coordinate and define the sale model for AES Tiete, including a potential M&A process.
Epic Games nears raising $750m. (FS)
New investors T. Rowe Price Group and Baillie Gifford will contribute to the round while existing investors, including KKR, will also participate. The valuation, which includes the new funding, is a bump up from the $15bn valuation the company garnered in 2018.
Royalty Pharma raised $2.2bn in second-biggest pharma IPO ever.
Royalty Pharma sold $2.2bn in stock after its US IPO was priced at the top end of the range, making it the second-largest pharmaceutical listing ever, Reuters reported. Royalty Pharma eclipses record label Warner Music Group's $1.9bn IPO earlier this month as the largest US listing so far this year, and is behind only Zoetis as the largest pharma IPO of all time.
The company had aimed to sell 70m shares but increased that amount by about 11% on the back of strong demand. The IPO values Royalty Pharma at $16.7bn. It sold shares at $28 apiece, having last week set a target price range for the IPO of between $25 and $28 per share.
The stock is due to start trading on the Nasdaq under the symbol RPRX. JP Morgan, Morgan Stanley, Bank of America Securities, Goldman Sachs and Citigroup were among the lead underwriters on the IPO.
IAC Holdings files for IPO.
IAC Holdings, a media and Internet company, filed for an IPO on Tuesday as the company looks to list shares after offloading its entire stake in Tinder-owner Match Group last December. The company will list its common stock under the symbol "IAC".
IAC, which owns brands such as financial education website Investopedia and video platform Vimeo, said it expects trading of its common stock to begin after the completion of its separation with Match.
The Sterling Group closes $2bn fifth private equity fund. (FS)
The Sterling Group closed its fifth flagship private equity fund on a $2bn hard cap, exceeding a predecessor that raised $1.25bn in 2015.
Founded in 1982 and based in Houston, Sterling is a middle-market firm that typically invests in manufacturing, distribution and industrial services companies with enterprise values ranging between $100m and $750m.
EMEA
Verbund, an Austrian electricity provider, offered to acquire a 51% stake in Gas Connect Austria, a gas pipeline operator, from OMV, an integrated oil and gas company. Financial terms were not disclosed.
"The offer is subject to agreement between Verbund and OMV on the transaction contracts and the approval of the supervisory board. The offer is otherwise confidential," Verbund.
Kinnevik to divest 4.2% stake in Zalando. (FS)
Sweden's Kinnevik said it was selling 10.6m of existing shares, representing 4.2% stake in online fashion retailer Zalando issued share capital, through the launch of an accelerated bookbuilding to institutional investors.
Kinnevik said the shares correspond to 16.2% of its holding in the firm. The investment company owns a 26% stake in Zalando. It said it was not planning to realize further cash from the Zalando investment. Kinnevik said Credit Suisse and Bank of America Securities will be acting as joint bookrunners in the transaction.
Travelex terminates sales process due to "unacceptable" terms.
Travelex, a foreign exchange company, has terminated a sale process as the offers it received were "unacceptable" to its revolving credit facility lenders and holders of senior secured notes.
The London-based company said discussions continue with the lenders and a group representing over two-thirds of the noteholders, over a long-term new money financial restructuring.
ADQ seeks loans to fund acquisition spree.
Abu Dhabi’s ADQ is in talks with banks to raise loans to finance its recent acquisition spree, Bloomberg reported.
The company, formerly known as Abu Dhabi Development Holding, held discussions with local and international banks about the financing. The investment firm could raise more than $3bn through a five-year loan.
CureVac plans US IPO in July.
CureVac, the German drugmaker, in which the government is taking a sizeable stake to help fund a Covid-19 vaccine, is planning an IPO in the United States next month, Reuters reported.
European biotech firms prefer the Nasdaq because the US capital market offers a critical mass of highly specialized biopharma investors.
SAIL Ventures to move the deadline for final close of $400m fund to end-2022. (FS)
SAIL Ventures, a boutique investment firm, is targeting to raise $400m for its private credit fund, &Green Fund, by the end of 2022, nearly two years later than the deadline set earlier, DealStreetAsia reported.
&Green Fund had initially sought to raise the corpus by the end of 2020, targeting the total value of investment into portfolio companies to reach $2bn.
UBS names Armin Peter into new European ESG role. (People)
UBS named a new head of sustainable banking in Europe in the latest example of an investment bank shifting senior dealmakers to focus on environmental, social and governance issues.
The Swiss bank handed Armin Peter, its current head of debt capital markets syndicate, additional responsibility as head of sustainable banking in Europe, the Middle East and Africa, Financial News reported. He has been with the bank for over 13 years and has held his current position since 2014. Peter joins Samantha Sutcliffe, who was hired by the bank as head of green and sustainable finance in December last year.
APAC
Australian buyout firm BGH Capital agreed to acquire the Primary Care Business of Healius, a diagnostic imaging centres company, for $343m.
"The successful sale of Medical Centres has been achieved at an attractive valuation for us, despite the challenging environment from the Covid-19 pandemic," Malcolm Parmenter, Healius CEO.
BGH Capital is advised by Allens. Healius is advised by Herbert Smith Freehills.
A KKR-led consortium, which includes Temasek, agreed to acquire a c. 6% stake in Vinhomes, a real estate developer, from Vingroup, a Vietnamese conglomerate, for $650m.
"We are truly honored to have the opportunity to invest in a successful, leading business like Vinhomes, which is an integral part of the consumer services ecosystem within the Vingroup family. This investment exemplifies the type of platinum brands and management teams KKR looks to work within Southeast Asia. Today's announcement further underscores our strong commitment to Vietnam, where KKR has been active and present for nearly a decade," Ashish Shastry, KKR Asia Pacific Co-Head of Private Equity & Head of Southeast Asia.
Vingroup is advised by Credit Suisse.
Keppel, a Singaporean conglomerate, and Manulife, a Canadian multinational insurance company, agreed to form a $200m joint venture which will focus on Indonesia's fast-growing logistics property sector.
"We are thrilled to partner with Alpha and MMP for our first real estate investment in Indonesia. The quality of the assets is well regarded and, along with the country's positive long-term macro and demographics prospects, this acquisition fits well with our long-term investment strategy for the Asia Pacific market and will surely bring added value to us and to Indonesia in the long run," Ryan Charland, Manulife
President Director & CEO of Indonesia.
Clix Capital considers acquiring a 45% stake in Lakshmi Vilas Bank. (FS)
Clix Capital, a provider of financial services, submitted a non-binding offer to buy a 45% stake in the troubled private lender Lakshmi Vilas Bank, DealStreetAsia reported.
With Lakshmi Vilas Bank's capital adequacy ratio shrinking to 3%, it has been in talks with institutional investors and funds to raise equity. One of the investors, US-based fund house Tilden, even had a meeting with Reserve Bank of India RBI officials in February.
Public Investment Fund considers investing in Jio Platforms. (FS)
Public Investment Fund, Saudi Arabia's wealth fund, is close to picking up a 2.33% stake in Mukesh Ambani led Jio Platforms for about $1.5bn.
With PIF coming on board, Jio Platforms would have diluted 25% of its equity. That is the maximum they intend to dilute to financial investors, which include Facebook, TPG Capital, L Catterton, Vista, Silver Lake, General Atlantic, KKR, Mubadala and Abu Dhabi Investment Authority. Any new investors coming on board in future will have to be strategic investors, Gulf News reported.
BEENEXT raised $160m for two new funds. (FS)
BEENEXT, a Singapore-based venture capital firm, has closed its two new funds with a combined corpus of $160m.
It has raised $110m for BEENEXT Emerging Asia Fund, and another $50m for a fund focused on SaaS businesses in Japan. The Emerging Asia Fund will focus on India and Southeast Asia, with both markets set to receive an equal share of allocation from the fund. Since its inception in 2015, BEENEXT has invested in 72 startups in India and 45 in Southeast Asia.
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