Private Equity
Home Capital Group Inc said billionaire Warren Buffett's Berkshire Hathaway Inc will provide a new $2 billion (US$1.50 billion) line of credit to its unit Home Trust Co, ending the Canadian lender's strategic review process, Reuters reported. Berkshire will also indirectly buy $400 million of Home Capital's common shares in a private placement through its unit Columbia Insurance Co. It will hold an about 38.39 percent equity stake in the company. Home Capital, Canada's biggest alternative mortgage lender, also said it will continue to explore further asset sales and financing deals over the next year, but has concluded its strategic review process that began in April.
2 min read · 22 June 2017
Fairfax Africa Holdings Corp (TSX: FAH.U) has agreed to invest a minimum of US$130 million in Atlas Mara Ltd, a financial services institution focused on the region of sub-Saharan Africa. The deal will anchor a broader strategic investment in Atlas Mara and is expected to give Fairfax Africa an interest of at least 35 percent. The proceeds will be used by Atlas Mara to invest in sub-Saharan banks and other priorities. Fairfax Africa, an affiliate of Canada’s Fairfax Financial Holdings Ltd, raised US$500 million earlier this year to invest public equity, private equity and debt in African businesses.
4 min read · 22 June 2017
Itafos (TSX-V: IFOS), a producer of phosphate-based fertilizers and related products, recently completed a private placement transaction, raising US$34.05 million. The key investors were Zaff, a U.S. distressed private equity firm and Itafos' majority owner, Pala Investments and J.P. Morgan Asset Management. The proceeds are being used to recommission Itafos' operations in Brazil and other priorities. Itafos was acquired by Zaff last October. The company recently redomiciled from Canada to the Cayman Islands and delisted its securities from the Toronto Stock Exchange, moving them to the TSX Venture Exchange.
6 min read · 22 June 2017
U.S. private investment firm Oaktree Capital Management has increased its ownership of common shares in SunOpta Inc (Nasdaq: STKL, TSX: SOY), a Canadian specialty foods producer. In May, Oaktree acquired about 1.4 million shares at US$8 per unit, growing its total interest in the business to approximately 16.16 percent of outstanding shares. Last year, Oaktree invested $85 million in the form of exchangeable preferred shares in Toronto-based SunOpta, which was intended to help reduce the company's second lien debt and enhance flexibility.
4 min read · 22 June 2017
Canadian private equity firm Lynx Equity has acquired G&W Commercial Interiors, a Seattle, Washington provider of commercial flooring products, installation and related services in the U.S. Pacific Northwest. No financial terms were released. With the deal, Steve Woodman, the company's vice president, has assumed the role of president. The investment is Lynx's second in the U.S. flooring products industry. Toronto-based Lynx is focused on acquiring small businesses from owners looking to retire. Last year, PE Hub Canada profiled Brad Nathan, the investor’s founder and president.
3 min read · 22 June 2017
Hong Kong's CK Infrastructure is vying with Canadian investors to buy German metering and energy management group Ista, which could be worth more than 4.5 billion euros (US$5 billion), sources told Reuters. CKI is competing with Canada Pension Plan Investment Board, which already owns a minority stake in Ista and has tied up with the Blackstone Group to make a bid for the full company. Brookfield Asset Management and Ontario Teachers' Pension Plan also submitted a bid, the sources said. Caisse de dépôt et placement du Québec and Kuwait's Wren House Infrastructure had also expressed interest, but it remained unclear whether they placed offers. Ista is currently owned by European buyout group CVC Capital Partners, which bought it in 2013.
2 min read · 21 June 2017
U.S. hedge fund manager Eddie Lampert-controlled Sears Canada Inc is preparing to seek court protection against creditors in the coming weeks, a source told Reuters. The business may be sold off in pieces after the court filing which will likely lead to liquidation, the source said. The company had last week said it was exploring strategic options, including a sale of the company, following years of declining sales.
1 min read · 21 June 2017
U.S. private equity firm Sverica Capital Management has acquired iWave Information Systems Inc, a Charlottetown, Prince Edward Island prospect research software company that provides fundraising intelligence to healthcare, education, and non-profit organizations. No financial terms were disclosed. Sverica partnered with Ross Beattie and iWave CEO Gerry Lawless in buying the company from Jamie Hill, iWave's former top executive. Beattie, formerly CEO of HGS Canada Inc, will join the company as executive director and vice chairman. Established in 1991, iWave currently serves more than 2,000 client organizations worldwide.
3 min read · 21 June 2017
Canadian lender Home Capital Group Inc said it would sell a portfolio of commercial mortgage assets valued at $1.2 billion (US$904 million) to real estate private equity firm KingSett Capital, Reuters reported. Proceeds from the sale will bolster its liquidity and trim outstanding debt on a $2 billion emergency facility it agreed with the Healthcare of Ontario Pension Plan (HOOPP) in April. HOOPP's expensive bridge financing came with an effective interest rate of 22.5 percent on the first $1 billion drawn down. That affected the company's ability to originate new mortgages since it could not afford to lend money at lower rates than its cost of borrowing.
2 min read · 20 June 2017
Onex Credit Partners LLC, the credit investment arm of Canadian private equity firm Onex Corp, has priced its 13th collateralized loan obligation (CLO) offering at about US$610 million. The transaction will be issued by a newly formed special purpose vehicle, backed by a portfolio of syndicated leveraged loans. Onex has committed to buy and hold a majority of the equity for the life of the deal. Onex last month launched its its fifth flagship buyout fund at a US$6.5 billion target.
2 min read · 19 June 2017
