Canada

Pacific E&P closes $500 mln restructuring deal with Catalyst

Pacific Exploration & Production Corp (TSX: PEN), a Toronto-based explorer and producer of natural gas and crude oil in Latin America, has closed its restructuring deal with Catalyst Capital Group, a Canadian private equity firm, and other creditors. The deal, announced in April, recapitalized the company with US$500 million, and helped reduce debt to US$250 million from US$5.4 billion. Catalyst's Gabriel de Alba, who serves as Pacific E&P's chairman, said the company will implement a strategy to narrow its geographic focus and reduce organizational scale, complexity and cost while ensuring sustainable production and growth.

Birch Hill-backed GDI to acquire Airtron Canada for $19.5 mln

Ainsworth Inc, an affiliate of GDI Integrated Facility Services Inc (TSX: GDI) has agreed to acquire Airtron Canada from Direct Energy Marketing Ltd. Ainsworth, bought by GDI last year, will pay about $19.5 million for Airtron, a Toronto provider of heating, ventilation and air conditioning (HVAC), building automation, and energy efficiency services. GDI said the deal, expected to close this month, will expand Ainsworth's services portfolio and strengthen its technical services segment. GDI, a Montréal-based commercial facility services provider, is a portfolio company of Canadian private equity firm Birch Hill Equity Partners.

CPPIB buys 40 pct stake in Chinese shopping mall for $162 mln

Canada Pension Plan Investment Board has made an investment of US$162 million to acquire a 40 percent interest in Pavilion Dalian, a shopping centre located in Dalian, China. The seller was Malaysian property developer Pavilion Group. The deal builds on CPPIB's joint venture with Pavilion in August 2015, which invested in Pavilion Damansara Heights, a mixed-use development project in Kuala Lumpur, Malaysia. CPPIB committed US$130 million to that transaction.

Alignvest Acquisition to combine with telecom company Trilogy

Alignvest Acquisition Corp (TSX: AQX.A), a Canadian special purpose acquisition corporation (SPAC), has agreed to combine with Trilogy International Partners LLC, a U.S. provider of wireless communication services through operating companies in New Zealand and Bolivia. The deal, which is Alignvest's qualifying acquisition, will see the SPAC invest US$269 million to secure a 51 percent equity interest in Trilogy. It is expected to close in Q1 2017. Alignvest is one of several Canadian SPACs launched via initial public offering in 2015. Another, INFOR Acquisition Corp, cancelled its deal with ECN Capital earlier this month.

Canadian PE deal values, volumes lag in 2016's first nine months

Deal-making activity in Canada’s buyout and related private equity market showed a marked decline in the first nine months of 2016, according to data released by Thomson Reuters. Disclosed values of transactions (announced and completed) totaled $14.3 billion as of September 30th, down 26 percent from the same time last year. Additionally, a total of 229 deals was done in the first nine months, the fewest in that period since 2010. Canadian oil and gas companies continue to drive 2016 activity, with 38 deals so far collecting $3.6 billion. Fundraising remained strong as of September 30th, with $42.9 billion in total new commitments.

U. S. Steel agrees to sale of U. S. Steel Canada to Bedrock Industries

United States Steel Corp (NYSE: X) (U.S. Steel) has agreed to the sale of U. S. Steel Canada Inc to Bedrock Industries Group, a U.S. private equity firm. The deal, which was approved by the Ontario government in September, will provide U.S. Steel with about US$126 million for its secured and unsecured claims, submitted as part of U. S. Steel Canada's application for creditor protection in 2014. It will also be released from specific obligations. Bedrock, which will restructure U.S. Steel Canada, previously said it will continue operating the company's plants in Hamilton and Nanticoke, Ontario.

Canada to set up infrastructure bank with access to $35 bln: Reuters

The Canadian government will set up an infrastructure bank and give it access to $35 billion to help fund major projects that might otherwise not get built, Finance Minister Bill Morneau said. Morneau told the House of Commons that the proposed bank, which Ottawa hopes will be up and running next year, would attract as much as $4 to $5 in private capital for every tax dollar invested. The bank, working with institutional investors as well as public and private pension funds, would conclude and execute complex infrastructure deals using loans, loan guarantees and equity investments.

Caisse, BlackRock close $282 mln financing of McInnis Cement

Investors in Montréal-based cement company McInnis Cement have closed their previously announced financing of about $282 million. The deal included a preferred equity investment of $125 million by the Caisse de dépôt et placement du Québec, a $125 million debenture held by BlackRock Alternative Investors, and an additional $32 million from minority shareholders. The funds raised are being used by McInnis to finish building an industrial cement project in Port-Daniel–Gascons, Québec. The company said nearly 75 percent of the construction has been completed and certain operations have begun.

Brand manager Mezzi inks $4 mln facility with Alumina Partners

Mezzi Brand Group (TSX-V: MZI), a Canadian consumer accessory brand management company, has agreed to access a draw-down equity facility of up to $4 million. The investor is Alumina Partners, a U.S. private equity firm. Vancouver-based Mezzi, which specializes in luxury leather handbags and accessories, will use the proceeds of the deal to grow and scale its brands portfolio and potentially make acquisitions. The company is led by Chairman and CEO Keir Reynolds.

CPPIB's Mark Machin warns against political interference: Reuters

The head of the Canada Pension Plan Investment Board warned lawmakers not to interfere in its investment policies saying it should operate "at an arm's length" from the government, Reuters reported. The Liberal government is looking for ways to attract private investors such as pension funds to invest in new infrastructure projects, having committed to spending $125 billion over the next 10 years. Speaking to the House of Commons Finance Committee on Tuesday, CPPIB's CEO Mark Machin said the fund would welcome more opportunities to make investments of more than $500 million in Canadian infrastructure, but cautioned that political pressure to invest would be unwelcome.