Private Equity
Champion Iron Ltd (TSX: CIA) has secured about $230 million (US$180 million) in conditional debt financing commitments from Caisse de dépôt et placement du Québec and Sprott Resource Lending Corp. Of this amount, US$100 million will be provided by the Caisse in the form of a subordinated loan. Shareholders will vote on the deal in August. Champion intends to use the funds raised to resume operations at its Bloom Lake iron ore mine in Québec. It acquired the mine and related assets last year with the help of $30 million in financing from Wynnchurch Capital, Resource Capital Funds and other investors.
7 min read · 13 July 2017
Canadian telecommunication network services provider Telecon Inc has closed a $70 million equity financing. The deal was led by Clearspring Capital Partners, a Canadian private equity firm. As a result, Clearspring will hold a 35 percent interest in the company and Managing Director Lawrence Stevenson will become board chairman. Caisse de dépôt et placement du Québec, which owns a 30 percent interest, and Telecon management, led by President and CEO André Héroux, also invested. Montréal's Telecon, which is also backed by Capital régional et coopératif Desjardins, said the funds raised will allow it to grow its Canadian footprint and strengthen the capital structure.
5 min read · 13 July 2017
The reluctance of Renova Energia SA's largest shareholder to give up management of the debt-laden Brazilian renewable power company threatens to derail takeover talks with Brookfield Asset Management Inc, sources told Reuters. Power utility Cia Energética de Minas Gerais SA wants to be part of a Brookfield-led turnaround of Renova. The utility known as Cemig owns 34.2 percent of Renova. That stance could sink Brookfield's proposed 1.6 billion-real (US$499 million) cash offer for control. Cemig plans to first sound out interest from distressed debt giant Oaktree Capital Management LP and two other unidentified funds in Renova, the sources said.
2 min read · 13 July 2017
Alpenglow Rail LLC, a U.S. freight rail company, has acquired VIP Rail LLC, a short line rail business located in Sarnia, Ontario's chemical valley. No financial terms were disclosed for the acquisition, Alpenglow's first with the backing of Stonecourt Capital, a U.S. private equity firm. Jon McEachran, president of VIP Rail, said the deal will create growth opportunities for his company, which currently accesses markets in Ontario, Québec and the United States. Denver, Colorado's Alpenglow Rail is seeking acquisitions of and partnerships with other short line railroads and transportation businesses.
3 min read · 13 July 2017
Canadian private-markets investor Northleaf Capital Partners has hired Robert Weiss as a Chicago-based senior advisor to its private credit team. Prior to joining the firm, Weiss was recently retired from Sankaty Advisors, now Bain Capital Credit, where he served as managing director and head of the Chicago office, and was responsible for deal activity related to the firm's mid-market direct lending business. Last November, Toronto-based Northleaf raised more than US$1.4 billion for its global private credit program and acquired a stake in Antares Holdings.
1 min read · 12 July 2017
U.S. private equity firm Cartesian Capital Group said it filed a complaint against IC Potash Corp (TSX: ICP), a Toronto explorer and developer of potassium fertilizer minerals in New Mexico. The complaint, filed in a New York State court, is for damages of at least US$10 million. Cartesian, which has invested as a minority partner in the company's U.S. potash affiliate, alleges misappropriation of the joint venture's funds. It also said IC Potash refused to fund the capital needs of the joint venture. Resource Capital Funds is among the company's investors.
2 min read · 12 July 2017
Digital Map Products Inc (DMP) has acquired DMTI Spatial Inc (DMTI), a Markham, Ontario provider of location-based big data, data visualization and analytics solutions, from Neopost Canada. No financial terms were released. DMP, a geospatial mapping technology and intelligence company, said the deal supports the expansion of its geographic footprint, broadens its suite of solutions, and strengthens its client base. Based in Irvine, California, DMP was recapitalized last year with the help of a US$36.3 million investment led by Silversmith Capital Partners, a U.S. growth equity firm.
4 min read · 12 July 2017
Jardine Transport Ltd has acquired all of the outstanding shares of R.E.M Transport Ltd, a long-haul trucking company based in Saint Stephen, New Brunswick. No financial terms were disclosed for the buy of R.E.M, which operates a fleet of more than fifty power units and sixty trailers in Canada and the United States. Jardine, a long-haul carrier based in Fredericton, said the deal adds scale to its operations and increases network density. Founded in 1978, Jardine was acquired in 2015 by Canadian private equity firm SeaFort Capital. Earlier this week another SeaFort portfolio company, Cooper Equipment Rentals Ltd, also announced an add-on deal.
2 min read · 12 July 2017
Canada Pension Plan Investment Board (CPPIB) has agreed to collaborate with Calgary oil and gas company Vermilion Energy Inc (TSX, NYSE: VET) in a strategic partnership in the Corrib Natural Gas Field in Ireland. CPPIB will acquire Shell Exploration Co BV's 45 percent stake in the project for about $1.2 billion (EUR830 million) plus contingent payments. It will transfer a portion of the interest to Vermilion, leaving the pension fund with 43.5 percent. Vermilion will hold a 20 percent operated stake, with Norway's Statoil ASA owning the rest. Corrib supplies about 60 percent of Ireland's natural gas consumption and accounts for about 95 percent of its gas production.
7 min read · 12 July 2017
AudienceView has bought TheaterMania, a New York-based provider of information and tickets for live theatre and the performing arts. No financial terms were released for the acquisition, which includes TheaterMania's OvationTix, a ticketing system, as well as the TheaterMania.com and WhatsOnStage media brands. Toronto-based AudienceView, an entertainment e-commerce company, said the deal extends its reach to more than 2,000 organizations in 15 countries . The company secured an investment last November from Rubicon Technology Partners, a U.S. software private equity firm.
3 min read · 11 July 2017
