Investor William Ackman, who owns nearly 10 percent of Botox maker Allergan Inc, has said that the likelihood of Valeant Pharmaceuticals International Inc succeeding in its hostile takeover for Allergan increased on Monday, Reuters reported. Ackman's Pershing Square Capital Management and Valeant made a joint offer for Allergan in April, which the company has rejected. The spread on the deal was below 3 percent on Monday. Ackman said that was a drop of 50 basis points.
1 min read · 22 July 2014
Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) and Samsung Renewable Energy have formed a partnership to provide equity financing to the Kingston Solar Project, a 100 megawatt initiative based in Ontario's Kingston and Loyalist Township. The partners also announced the close of debt financing for the project. Financial details were not disclosed for either of the funding arrangements. Construction of the project is expected to begin soon, with completion anticipated by late 2015. CC&L Infrastructure is an affiliate of Canadian asset manager Connor, Clark & Lunn Financial Group.
3 min read · 22 July 2014
David Rubenstein, co-founder of private equity firm The Carlyle Group and a Washington philanthropist, has donated $12.3 million to restore the home of Confederate General Robert E. Lee on the grounds of Arlington National Cemetery.
1 min read · 22 July 2014
The fourth time is the charm for U.S. private equity firm Lindsay Goldberg, which finally has found a buyer for First American Payment Systems. An investor group led by Ontario Teachers’ Pension Plan is acquiring the payment processor, according to a July 18 statement. While the financial terms weren't announced, First American likely sold for around US$700 million, a source told peHUB. Lindsay Goldberg originally invested in Fort Worth, Texas-based First American, which provides payment processing services for more than 140,000 merchants, in April 2003.
2 min read · 22 July 2014
Canadian merchant bank C.A. Bancorp, which was bought last year by CDJ Global Catalyst, has entered into a joint venture with U.S. insurance holding company Federated National Holding Co to form a property and casualty insurance carrier. Named Monarch National Insurance Co, the Florida-based carrier will have an initial capitalization of US$33 million from investments by C.A. Bancorp, Federated National and minority investor Transatlantic Reinsurance Co, a New York-based reinsurer. C.A. Bancorp and Federated National are expected to hold a 42.4 percent share in the new company's parent organization, Monarch Delaware Holdings LLC.
5 min read · 21 July 2014
Light Tower Rentals Inc, a portfolio company of Canadian private equity firm Clairvest Group, has completed an issue of US$330 million of senior secured notes. Proceeds were applied to the company's existing debt and provided for a shareholder distribution. Clairvest, which has backed Light Tower since 2008, received a distribution of US$100.3 million, which equates to 3.1x Clairvest’s investment. Clairvest realized 25 percent of this amount, or US$25.1 million on a pre-tax basis, and continues to maintain a majority stake in the company. Based in Odessa, Texas, Light Tower is a specialty rental and service company renting surface-based support equipment to the oil and gas industry.
3 min read · 21 July 2014
A professor who launched a debate earlier this year about the tax treatment of monitoring fees has weighed in again to argue that sponsors would not necessarily pay lower taxes should they characterize monitoring fee income as dividends instead of regular income. The professor advocates the characterization so that portfolio companies would pay higher taxes.
2 min read · 21 July 2014
Trimel Pharmaceuticals Corp (TSX:TRL) has bought the Canadian rights for Estrace(R), a treatment for menopausal symptoms, from Shire Plc for $44.5 million. To finance the deal, Trimel has obtained a senior secured term credit facility with U.S.-based MidCap Financial LLC for up to US$25.0 million. Additionally, the company has obtained a convertible subordinated unsecured term note of US$25.0 million from First Generation Capital, a Canadian investment holding firm. Based in Mississauga, Ontario, Trimel develops medications for male hypogonadism, female sexual dysfunction and various respiratory disorders.
4 min read · 21 July 2014
Augustus Advisors LLC, an affiliate of U.S. private equity firm TPG Capital, has contacted shareholders of Enercare Inc (TSX: ECI) about a possible buyout of the Toronto-based water heater company. Augustus, which indirectly owns 11.67 percent of Enercare's common shares, said TPG approached the company about a take-private deal nearly a year ago and has requested additional data prior to making a formal bid. In a letter sent to Enercare's board of directors in May, a purchase price of $13.50 to $15.00 per share was flagged, which The Globe and Mail estimates values the deal at $790 million. Augustus said that "disappointingly, the company’s board has not been receptive to pursuing a transaction."
10 min read · 21 July 2014
First American Payment Systems LP has agreed to be bought by an investor group led by Ontario Teachers' Pension Plan. Members of the company's management team will also participate in the acquisition, whose financial terms were undisclosed. The seller in the deal is U.S. private equity firm Lindsay Goldberg, which originally invested in First American in 2003. According to a recent report from peHUB's Luisa Beltran, there have been repeated attempts in the past few years to sell the company. Based in Fort Worth, Texas, First American is a payment processor that provides electronic transaction processing services to merchants. Its sale is expected to be completed in August.
2 min read · 21 July 2014
