Private equity firm Welsh Carson Anderson & Stowe agreed to sell its 3-year-old portfolio company CCHN Group Holdings to Providence Service Corp. for $400 million in cash and stock, the fellow Arizona-based social services provider said Thursday.
Less than a third of private equity deals in the second quarter included monitoring or transaction fees, according to a new report from industry researcher PitchBook, highlighting a growing trend toward ditching fees as investors, asset managers and regulators question their merit.
At some point, the interest rate and refinancing environment will become more difficult and expensive, and the consequences for the deal environment could be profound, says Mel Cherney, co-chairman of Kaye Scholer LLP’s corporate department.
I remember an associate at another firm left three zeros off of a security agreement and the bank he was representing ended up with a $100,000 security interest on a $100 million loan. I think the associate was fired in his first year, says Eric Orlinsky of Saul Ewing LLP.
Valeant Pharmaceuticals International Inc. sought a court order Tuesday barring Allergan Inc. from redacting documents on grounds of business strategy in its insider trading suit against Valeant, alleging its takeover target is inventing a federal privilege to justify improperly withholding information.
The bankrupt owner of a Texas asphalt refinery caught up in a bitter family feud unveiled plans Wednesday to sell it for $100 million to a portfolio company of private equity firm EnCap Flatrock Midstream, enough to pay off creditors in full and leave equity holders in the money.
U.S. activist investor Bill Ackman surprised many on Monday when he said a planned $2 billion initial public offering for one of his funds, Pershing Square Holdings Ltd., would take place in Amsterdam rather than London — a move likely driven by a quest for a broad investor base and flexible corporate governance standards. Here, Law360 takes a look at the benefits of listing in Amsterdam.
A deadlocked Federal Energy Regulatory Commission on Monday let stand the results of regional grid operator ISO New England Inc.'s annual forward capacity auction, angering consumer advocates who claim a private equity firm intentionally drove up auction prices by retiring a coal-fired plant prior to the auction.
Credit Suisse is brushing off U.S. regulators' concerns about problems with its underwriting and sale of leveraged loans, while marijuana startup MJardin is eyeing plans to take its cannabis management company public.
Pacific DataVision Inc. said on Tuesday that part of the $218 million in equity funding it recently raised will go toward the purchase of Sprint Corp.'s spectrum licenses, as PDV works to launch a two-way radio network for businesses.
Private equity-backed Civitas Solutions Inc., which provides health care services for the developmentally disabled, priced well below its range, raising just $198.9 million before kicking off trading Wednesday on the New York Stock Exchange.
We’ve seen a number of large, complicated deals get inked in two weeks or less — from start to finish. Competitive pressure to get deals done quickly results in a streamlined diligence process and a real no-nonsense approach to negotiating definitive documents, says Fiona Brophy of Perkins Coie LLP.
Puff Daddy has paid $40 million for a Los Angeles-area mansion, while Blackstone is said to have paid €350 million for two Frankfurt office towers and Keck Seng is buying the Sofitel hotel in Manhattan for $272 million.
The Carlyle Group LP has acquired a pair of hotels in the Florida Keys multi-island village of Islamorada, doubling the number of hotels it owns there, the global asset manager said Monday.
Atlanta-headquartered private equity firm Eagle Merchant Partners is looking into PODS Enterprises Inc. for about $1 billion including debt, while U.K. communications and media company UBM PLC is in the late stages of discussions to buy Advanstar Communications Inc.
Friendly capital markets have helped spur a strong year for global M&A as low interest rates and few constraints have made debt readily available to buyers, but as Scotland prepares to vote for independence, a "yes" vote could quickly put the deals market on pause amid an expected spike in interest rates.
A group of previously undisclosed Alibaba investors are set to rake in some serious cash in the e-commerce giant's upcoming IPO, while the world's biggest banks are overhauling the way they trade currencies.
KKR & Co. Inc. will pick up Pioneer Corp.’s disc-jockeying equipment unit for 59 billion yen ($551.7 million) as the Japan-based digital entertainment products company continues to pare down to focus on its automotive technology business.
Private equity firm KKR & Co. LP has provided $164.2 million in long-term financing to the holding company of Indian infrastructure development firm GMR Infrastructure Ltd., the companies announced Tuesday.
This week is off to an auspicious start after deal makers introduced a slew of multibillion-dollar transactions that fan out over a range of industries, proving the summer lull is officially over and M&A prospects remain solid heading into fall.
The equity cure right has gained significant acceptance in all ranges of the middle market for sponsor-backed deals, and lenders are adapting equity cure provisions for the middle-market risk profile by including tighter controls on the use of proceeds and limits on the borrower’s ability to exercise the cure right, say attorneys with Brownstein Hyatt Farber Schreck LLP.
Decisions interpreting subordination agreements often serve as a reminder of the importance of using precise language. In the Chapter 11 case of Momentive Performance Materials, potential ambiguity created by four words — “junior in any respect” — opened the door to litigation, says Charles Persons of Weil Gotshal & Manges LLP.
The scope and impact of recent IRS chief counsel advice — concluding that members of an investment manager were subject to self-employment taxes — is difficult to assess, especially since the CCA does not address how its analysis would apply if the entity in question was a limited partnership and its members were “limited partners” under the applicable state law, say attorneys with Bingham McCutchen LLP.
Ultimately, the appropriate methodology for a cramdown interest rate is a value allocation tug-of-war between debtors, secured creditors and more junior creditors, and Judge Robert Drain’s decision in the Chapter 11 case of Momentive Performance Materials affords additional weight to debtors in that battle, says David Griffiths of Weil Gotshal & Manges LLP.
Judge Robert Drain’s bench ruling in Momentive Performance Materials is unambiguous when it comes to its support for the “formula” approach in determining a cramdown interest rate for a secured creditor and in elucidating the guiding first principles that dictate how to calculate the applicable cramdown interest rate for a secured creditor’s allowed claim in a Chapter 11 case, says David Griffiths of Weil Gotshal & Manges LLP.
More and more midstream companies are in need of capital to take advantage of significant infrastructure investment opportunities, which should lead to more public and private merger and acquisition activity in the midstream space along with additional initial public offerings, says Sean Wheeler of Latham & Watkins LLP.
A recent Law360 article about the perennial BigLaw concern over how to recruit and retain female and ethnically diverse attorneys addressed a new approach being taken by some law firms — going beyond traditional mentoring programs by creating a sponsorship relationship. Pro bono can also play a part, say David Lash and Merle Vaughn of the Association of Pro Bono Counsel.
It is highly unlikely that a subscription facility lender, absent unusual control or profit-sharing mechanics, could be deemed to hold an ownership interest in a private equity fund under the Volcker Rule solely as a result of the typical facility lending relationship, say attorneys with Mayer Brown LLP.
For a law firm, excess time dedicated to legal research generates waste, either in the form of artificially reduced billable hours or, particularly in flat or contingency fee projects, as overhead eroding the profitability of legal work. By measuring five factors, firms will begin to understand their own opportunities for improving profits, says David Houlihan of Blue Hill Research Inc.
Obtaining a successful outcome when bidding in a merger and acquisition auction is a balancing act between two competing goals — winning the bid and minimizing the cost of losing, says Robert Hussle of Rogers & Hardin LLP.