Tag archives: finance

The SPAC is back: going public in a pandemic

According to Axios, the first half of 2020 saw special purpose acquisition companies (“SPACs” for short) in the U.S. raise over US$20 billion, easily eclipsing the US$13.3 billion raised in all of 2019. A SPAC is a special purpose vehicle that does not have any assets or operations, but exists solely for the purpose of raising money in the public markets with the aim to acquire an operating business (or several businesses). Of the recently launched SPACs, many are run by well-known investors who bring substantial amounts of capital and experience to the SPAC with them.

Even in the … Continue Reading

Private Equity Funds & Co-Investment: A Symbiotic Relationship

Broadly, a co-investment is an investment in a specific transaction made by limited partners (LPs) of a main private equity (PE) fund alongside, but not through, such main PE fund. This is often accomplished through a separately structured co-investment vehicle which is governed by a separate set of agreements. Co-investments are attractive to PE funds and LPs alike for a multitude of reasons, including as: a means for PE funds to gain access to supplementary capital; an avenue by which PE funds may make larger single investments that are otherwise unavailable or undesirable; and a means for LPs to attain … Continue Reading

Let’s see the money! Debt finance options in M&A

In many cases purchasers in an M&A deal will obtain debt financing to cover a portion of the purchase price. Fortunately, in Canada the options for acquisition financing are plentiful. Common ‘types’ include:

Senior Debt: the Bank Loan

Banks and other senior lenders can design a range of tailored solutions to purchasers’ funding needs. Broadly speaking, these loans can be classified as follows:

  • Fixed Term Loan or Revolver: The fixed term loan is credit for a fixed amount to be funded, and paid back, according to a pre-determined schedule. A revolving loan allows a borrower to drawdown, pay back and
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A new reality: living with lower oil prices

The below is an excerpt taken from a bulletin published on the Norton Rose Fulbright (United States) website earlier this month. Please click here to read the entire bulletin, which also includes an overview of managing contractor and counterparty exposure, proactively reviewing and renegotiating contractual arrangements, mitigating the risk of contractor exposure in construction projects, shareholder activism, communication and public relations, and political risk.

Introduction

Following a prolonged period of high oil prices, the world must adjust to a ‘new normal’. Opinion as to where the average spot price will hover following the current volatility varies but the consensus … Continue Reading

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