Private Equity
Canadian apparel company Roots Corp raised $200 million in its initial public offering, a source with direct knowledge of the matter told Reuters. The company priced its shares at $12 on the Toronto Stock Exchange, according to the source, down from a previous range of $14 to $16. Roots, known for its trademark beaver logo, is set to make its debut seven months after Canada Goose Holdings Inc had its high-flying IPO. The company has been a portfolio investment of U.S. private equity firm Searchlight Capital Partners since 2015. Searchlight is selling shares as part of the offering.
1 min read · 18 October 2017
Neo Performance Materials Inc, a Toronto-based producer of advanced materials, has filed a preliminary prospectus with Canadian securities regulators for an initial public offering of common shares. The IPO, which has not yet been priced, contemplates a secondary sale of shares by U.S. private equity firm Oaktree Capital Management, the company's majority shareholder. Oaktree reportedly took control of Neo Performance, formerly known as Molycorp Inc, when it emerged from bankruptcy in 2016. Scotiabank and RBC Capital Markets are acting as joint book-runners for the IPO, and Cormark Securities is acting as co-lead underwriter.
3 min read · 18 October 2017
Onex Corp has so far raised almost US$6.7 billion for its fifth flagship private equity fund, the firm said in a Securities & Exchange Commission filing. The Toronto investor also increased the target for Onex Partners V to US$7 billion from an earlier US$6.5 billion, possibly on the strength of the first close in July. At that time, Fund V had secured US$5.2 billion, or 80 percent of the original goal. With US$6.7 billion in the bank, the fund is already the biggest raised by Onex in its 33-year history. While not yet closed, it is now 17 percent larger than its predecessor, which collected US$5.7 billion in 2014.
2 min read · 17 October 2017
Osisko Gold Royalties Ltd (TSX, NYSE: OR) has launched a $260 million bought deal of convertible senior unsecured debentures. The deal, expected to close in November, includes an agreement by the Public Sector Pension Investment Board (PSP Investments) to purchase $100 million of debentures in a private offering. An option has been granted to underwriters to increase the private offering by a further $40 million. Montréal-based Osisko said the proceeds will be used in part to acquire precious metal royalties and streams. Earlier this year, Osisko bought a precious metals portfolio from U.S. private equity firm Orion Mine Finance Group for $1.13 billion.
4 min read · 16 October 2017
Lone Wolf Technologies has acquired Instanet Solutions, a London, Ontario-based provider of transaction management, electronic forms, and e-signature solutions for the real estate industry. No financial terms were disclosed. Cambridge, Ontario-based Lone Wolf said the acquisition supplements its suite of residential real estate software solutions and "paves the way for the industry’s first fully integrated end-to-end solution." It added that it plans to invest "millions of dollars" in the combined platforms. Led by CEO Patrick Arkeveld, Lone Wolf has been backed by U.S. private equity firm Vista Equity Partners since 2015. Vista increased its investment last year.
4 min read · 16 October 2017
Naturally Splendid Enterprises Ltd (TSX-V: NSP) has entered into a draw-down equity facility of up to $6 million with Alumina Partners, a U.S. private equity firm. The funds raised will be used by the company to back its acquisition of Canadian meal replacement products business Prosnack Natural Foods Inc, announced in August, and for working capital purposes. Vancouver-based Naturally Splendid is a biotechnology and consumer products company focused on developing and producing hemp-derived, bioactive ingredients, nutrient dense foods, and related goods. It is led by CEO Dave Eto.
5 min read · 16 October 2017
Frontera Energy Corp (TSX: FEC), formerly known as Pacific Exploration & Production Corp, has agreed to acquire a 36.36 percent interest in Pacific Midstream Ltd (PML), a Colombian operator of pipeline and power transmission lines. Frontera agreed to buy the stake from International Finance Corp for $225 million in cash. With the deal's close, Frontera, a Canadian explorer and producer of crude oil and natural gas in Latin America, will own 100 percent of PML and be able to reduce transportation costs and related commitments. Frontera closed a US$500 million restructuring deal with Canadian private equity firm Catalyst Capital Group and other creditors in 2016.
3 min read · 16 October 2017
Canadian train-and-plane maker Bombardier Inc is exploring options for its aerospace businesses, including a sale of some operations,Reuters reported, citing a recent Bloomberg story. The company is considering disposal of assets including its Q400 turboprop and CRJ regional-jet unit, the Bloomberg report said. Bombardier is also looking at partnerships with other aerospace companies. According to the report, Europe’s Airbus SE is among the prospective buyers. Bombardier, which is now in the middle of a five-year turnaround plan after considering bankruptcy in 2015, has previously weighed strategic options for parts of its aerospace division.
2 min read · 16 October 2017
U.S. mid-market lender Antares Capital said it is serving as administrative agent and joint lead arranger on a US$111 million senior secured credit facility to support the growth and refinancing of Movati Athletic Group by Norwest Equity Partners. Based in Windsor, Ontario, Movati is a health club operator that offers fitness classes, pools, basketball courts, women’s-only sections, childcare, weight training and cardio to over 95,000 members. It has been backed by Norwest, a U.S. private equity firm, since 2014. Antares, acquired by Canada Pension Plan Investment Board in 2015, said Movati is "uniquely positioned to gain share in the premium health club market in Canada."
2 min read · 16 October 2017
Canadian Solar Inc (NASDAQ: CSIQ) has agreed to sell interests in three solar farms in Queensland, Australia with 117 megawatt peak of capacity to Foresight Solar Fund, a U.K. infrastructure and private equity firm. No financial terms were released for the deal, which will see Foresight acquire 49 percent stakes in Longreach Solar Farm and Oakey 1 Solar Farm, and 100 percent of Oakey 2 Solar Farm. All three projects are expected to connect to the grid in 2018. Based in Guelph, Ontario, Canadian Solar is a maker of solar photovoltaic modules and a provider of solar energy solutions.
4 min read · 16 October 2017
