Thursday, Nov. 26, 2015 5:35PM EST
Lenders have been relatively tolerant of indebted oil companies amid the crude-price collapse, but now their patience is wearing thin.
They showed their limits on Thursday, when a lending syndicate pushed debt-heavy junior producer Spyglass Resources Corp. into receivership.
Spyglass said an Alberta court granted the lenders’ application, which went unopposed by the company’s board, chaired by Calgary energy veteran Tom Buchanan.More »
Thursday, Nov. 26, 2015 2:40PM EST
A study of directorships at Quebec Inc.’s biggest publicly listed companies reveals that some of the province’s best-known firms are not necessarily the best connected.
The report – by the Institut de recherche et d’informations socio-économiques (IRIS) – looked at the directors on the boards of the 30 biggest companies in Quebec, including Alimentation Couche-Tard Inc., National Bank of Canada, Bombardier Inc., Power Corp., Metro Inc. and Quebecor Inc., between 2004 and 2012.More »
Thursday, Nov. 26, 2015 5:00AM EST
Lexpert Roundup on the Business of Law
Lexpert identifies and reports on emerging business issues and practice areas in the business of law. Whether online, in our magazine or in the DealsWire e-newsletter, we chronicle deals and lawsuits of interest, and cover issues of broad concern to the legal profession and those who purchase legal services. We hope you enjoy this sample of our latest content.More »
Thursday, Nov. 26, 2015 4:00AM EST
Most jobs on Bay Street require you to check your “BlackBerry.” And, when asked to “check your BlackBerry,” most Bay Street types will pull out an iPhone or Android. That is nice for BlackBerry Ltd. because it means it has achieved the status of Kleenex or Band-Aid : a thing most commonly known by a brand name.More »
Wednesday, Nov. 25, 2015 6:35PM EST
DEAL OF THE DAY
Alaska buys TransCanada’s stake in LNG megaproject
Alaska has bought Calgary-based TransCanada Corp.’s stake in an LNG megaproject for $64.6-million (U.S.) – another twist in a four-decade quest to build a natural gas conduit from the state’s remote North Slope.
Developed by Exxon Mobil Corp., ConocoPhillips Co. and BP PLC, the Alaska LNG proposal includes a 1,300-kilometre pipeline to a terminal at Nikiski, southwest of Anchorage, where the gas would be liquefied for export to Asia as early as 2024. The project’s final price tag could reach $65-billion. StoryMore »
Wednesday, Nov. 25, 2015 6:05PM EST
If Canadian banks want to expand into the United States with acquisitions, they may have to contend with higher prices and rising competition – conditions that are no doubt weighing on the ambitions of Canadian Imperial Bank of Commerce and Bank of Montreal in particular.
Hamilton Capital Partners noted that there have been 85 proposed and completed transactions involving publicly traded banks in the U.S. over the past three years, continuing a trend over the past 30 years that has reduced the total number of U.S. commercial banks to 5,600 from 14,500.More »
Wednesday, Nov. 25, 2015 4:22PM EST
While many Canadians are cheering at the country’s new commitment to reducing carbon emissions, corporate law firms with large and lucrative traditional oil and gas practices could be forgiven for greeting developments of the past few days with mixed emotions.
For decades, oil and gas work has fed mergers and acquisitions, construction law, mining, corporate finance and a myriad of other corporate-commercial practices. It’s difficult to think of a large corporate law firm that doesn’t have a presence in Calgary.More »
Wednesday, Nov. 25, 2015 2:11PM EST
Ross McCredie, founder and ex-CEO of Sotheby’s International Realty Canada, has resurfaced in a new role for a U.S. real estate startup.
Mr. McCredie departed suddenly from Sotheby’s in July after an 11-year run. At the time, no reason was given for his departure.
This week he started as a consultant with Compass, a privately held, New York-based real estate company that employs agents and operates a listings database in a number of U.S. cities. Compass recently raised $50-million (U.S.) in venture capital funding and has been valued at $800-million. Compass was started in 2012 by engineer Ori Allon and former banker Robert Reffkin.More »
Tuesday, Nov. 24, 2015 10:29PM EST
Caisse de dépôt et placement du Québec is plowing ahead with plans to build up its infrastructure portfolio, grabbing on to Australia’s “poles and wires.”
The Caisse said Tuesday evening it would invest $1.15-billion as part of a consortium buying a 99-year lease of an electricity distribution business in the Australian State of New South Wales. The deal, worth $9.9-billion total, would turn operations of the 13,000 kilometres of high-voltage power lines, known as TransGrid, over to the consortium.More »
Tuesday, Nov. 24, 2015 7:25PM EST
DEAL OF THE DAY:
AutoCanada raises $75-million
AutoCanada Inc. announced after the bell on Tuesday that it had raised $75-million in a bought deal.
The auto dealership group sold 2.9 million shares at $25.50 apiece, a discount of almost $2 a share compared to the $27.40 closing price of the shares.
RBC Dominion Securities Inc. and Scotia Capital Inc. are leading the offering.More »
Tuesday, Nov. 24, 2015 2:56PM EST
Former MDC Partners Inc. CEO Miles Nadal is shedding most of his stake in the New York-based advertising company, grossing more than $100-million (U.S.) over the past month.
Mr. Nadal, who until October remained an owner of more than 5 per cent of the company, sold 1,842,000 shares of stock Oct. 29 at an average price of $20.50, grossing almost $38.8-million, according to a filing with U.S. securities regulators. On Nov. 18, he sold another 3.2 million shares, also at an average price of $20.50, grossing $65.5-million.More »
Tuesday, Nov. 24, 2015 1:13PM EST
The underwriters behind BCE Inc.’s surprising bought deal took a risk selling $750-million worth of new shares at such a tight discount. Lucky for them, retail investors are stepping up to support the deal.
Hardly anyone, not even some underwriters, expected a common share financing from the Canadian telecommunications giant – let alone such a large one. The last time BCE issued shares was 2002. Add to that the deal’s tight 1.6-per-cent discount and the degree of surprise only climbed higher.More »
Tuesday, Nov. 24, 2015 5:00AM EST
He can’t afford to show it, but Hunter Harrison has to be frustrated. For someone whose success stems from being so hard-nosed, courting Norfolk Southern by cooing, not crowing, must be wrenching.
Canadian Pacific Railway’s saviour has no other choice. To fulfill his dream of creating a railway that touches three coasts, he must do more than win over shareholders – he also has to convince a powerful U.S. regulator that his $28-billion (U.S.) offer for Norfolk Southern is about more than building an empire.More »
Monday, Nov. 23, 2015 7:14PM EST
DEAL OF THE DAY:
CPPIB, partner to buy U.S. retailer Petco for $4.6-billion
The Canada Pension Plan Investment Board (CPPIB) is counting on pet owners increasingly spoiling their cats and dogs with its latest U.S. investment.
The CPPIB and private equity group CVC Capital Partners are acquiring San Diego-based Petco Animal Supplies Inc., a U.S. retailer of pet food, supplies and services. The deal is valued at $4.6-billion (U.S.) including debt. StoryMore »
Monday, Nov. 23, 2015 5:30PM EST
Private equity firms have been poised for months to pounce on energy acquisitions as the industry creaks under the strain of the oil-price collapse – and now some are doing just that.
KERN Energy Partners has made an investment in Kaisen Energy Corp., a private firm that produces heavy oil. The firms declined to give the dollar figure, saying only that it is “sizable.”More »
Monday, Nov. 23, 2015 4:45PM EST
Harris Fricker is unwilling to completely rule out a privatization of GMP Capital Inc.
“We consider a whole host of things on a regular basis. It’s just kind of what we do. We’re bankers,” said Mr. Fricker, the company’s chief executive, when asked if GMP has considered going private given the current difficult operating environment. (GMP has lost money in three out of the past four quarters.)More »
Sunday, Nov. 22, 2015 5:17PM EST
Last Wednesday, the financial press declared the impending initial public offering of U.S. cloud-based payments company Square a disaster: It was priced at a lower-than-expected $9 (U.S.) a share following a cool reception by institutional investors. That was below the $15.46 private investors paid in its last venture financing a year earlier – the latest in a string of U.S. tech IPOs to take markdowns on their public debuts. Then, on Thursday, the shares popped by 45 per cent as the company started trading, and suddenly the IPO was winning praise.More »
Friday, Nov. 20, 2015 6:52PM EST
In his 14 years at GMP Capital Inc., Harris Fricker has rarely seen it this bad.
The chief executive officer of GMP is grappling with heavy losses, falling revenue, evaporating bonuses and deep job cuts in the aftermath of the commodities crash.
It’s not just GMP. Canada’s once highly profitable independent investment banks and brokerages are reeling amid technological upheaval and a shrinking pool of deals at a time when big banks are muscling into their territory.More »
Friday, Nov. 20, 2015 5:28PM EST
Eagle Energy Trust is restructuring as a standard-issue dividend-paying corporation, abandoning an income-trust structure that failed to win favour with investors as crude prices slumped. Eagle is buying a smaller royalty interest collecting company for $13.2-million in stock as it makes the transition.More »
Friday, Nov. 20, 2015 5:00AM EST
More veteran investment bankers are gone from Scotia Capital as the dealer retools its roster.
Real estate head Stephen Sender and vice-chair Stephen MacCulloch, who have both been at Scotiabank for more than 15 years, are no longer with the dealer.
Mr. Sender joined Scotiabank in 1995 and was the long-time head of real estate investment banking. Mr. MacCulloch started at Scotiabank in 1998 and was later named the Quebec head for Scotia Capital.More »
Thursday, Nov. 19, 2015 7:42PM EST
DEAL OF THE DAY:
Planes, trains and ‘bond-like’ protections
Bombardier Inc. moved to shore up its cash position on Thursday, striking a $1.5-billion (U.S.) deal to sell a 30-per-cent stake in its rail division to the Caisse de dépôt et placement du Québec.
It’s the second cash boost for Bombardier in the space of a month and comes on the heels of a $1-billion investment from the Quebec government in Bombardier’s flagship C Series aircraft program. The Caisse said it was never interested in investing in the C Series, but Bombardier will use some of the Caisse money to fund the jet’s development, so the proceeds will be directed there anyway.More »
Thursday, Nov. 19, 2015 6:38PM EST
The Caisse de dépôt et placement du Québec is tunnelling deeper into the rail market with its latest investment in Bombardier’s transport division, a move that taps into themes that have driven the pension fund manager’s increased investments in infrastructure.
The Caisse made its $1.5-billion (U.S.) investment for a stake in Bombardier Transport (BT) – a business that makes high-speed trains, light-rail vehicles and subway cars – in part because the rail industry is growing globally. The investment also fits with the pension fund manager’s long-term strategy to build its portfolio in infrastructure and expand its geographical footprint.More »
Thursday, Nov. 19, 2015 3:08PM EST
Complicated doesn’t begin to describe it. The term sheet for Bombardier Inc.’s financing with the Caisse de dépôt et placement du Québec is utterly baffling.
In sticky situations, such as this desperate financing, it’s common to see the investor that steps up to save the day offered some sweeteners. Maybe it gets warrants to juice its return if the company rebounds, maybe it is promised a minimum profit should the troubled company pay back the investment early. The Caisse, it seems, is getting all that, and then some, which makes the deal look extremely valuable to its stakeholders.More »
Wednesday, Nov. 18, 2015 7:28PM EST
DEAL OF THE DAY
CP’s $28.4-billion bid a ‘substantial’ premium for Norfolk investors
Canadian Pacific Railway Ltd. has released the letter it sent to Norfolk Southern Corp.’s (NSC) chief executive officer outlining the proposed $28.4-billion (U.S.) takeover of the Virginia-based railway.
In the letter dated Nov. 9, CP says the cash-and-stock offer of $46.72 a share and 0.348 in stock is a “substantial” premium to form a combined company that will be able to achieve more than $1.8-billion in cost savings “over the next several years.”More »
Wednesday, Nov. 18, 2015 4:54PM EST
The term “merger of equals” is one that gets thrown around a lot, as the acquiring company attempts to soften the impact of its takeover. But when Alamos Gold Inc. and AuRico Gold Inc. proposed their tie-up, these gold extraction outfits were like mirror images of each other. One had cash, the other assets and a need for cash. So equally matched were these counterparts that neither was willing to pay a premium for the other’s shares. That might have made for a good press release, but it left the merger vulnerable to interlopers willing to offer either company a better deal.More »
Wednesday, Nov. 18, 2015 3:12PM EST
Intent on building out its Canadian investment banking team, Raymond James has added another seasoned professional to its ranks.
Glenn Gatcliffe has joined the Canadian dealer to cover the consumer, agriculture and manufacturing sectors. Mr. Gatcliffe was most recently at BMO Nesbitt Burns, where he advised many of the same companies.More »
Wednesday, Nov. 18, 2015 3:01PM EST
Financial technology companies can make established banks squirm – but at a roundtable discussion on digital banking on Wednesday, the spirit of friendly collaboration was hard to miss.
The venue may have set the mood, of course: Royal Bank of Canada hosted the event and its chief executive officer, Dave McKay, delivered opening remarks that portrayed fintech firms as potential allies to established banks, rather than threats.More »
Wednesday, Nov. 18, 2015 9:00AM EST
If nothing else, Keith Creel is courageous. It takes some audacity to argue North American railroads are ripe for mergers when major rivals have scoffed at the idea.
On Tuesday, Canadian Pacific Railway’s chief operating officer told a Toronto transportation conference that when it comes to consolidation, “it’s not if, it’s when.” His competitors have been arguing the opposite for months.More »
Wednesday, Nov. 18, 2015 6:00AM EST
Canadian Imperial Bank of Commerce has announced an exclusive partnership with small-business lender Thinking Capital Inc., showing that established banks can form relationships with companies that are often labelled as disruptive forces.
The Montreal-based company provides short-term online loans ranging from $5,000 to $300,000 to small businesses that might not be tapping the banks for loans or want faster service.More »
Wednesday, Nov. 18, 2015 5:00AM EST
Extendicare Inc. is caught between its plans for growth in the retirement home business and a shareholder that would nix its recent deals.
Elder care company Extendicare is facing off against Toronto-based investment firm Oxford Park Group, which owns more than 5 per cent of Extendicare’s shares and has levelled criticisms at the company with demands for a boardroom shakeup. A slate of proposed new directors includes heavyweights from a range of sectors such as health care, real estate and finance.More »
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Janet specializes in reporting on corporate governance, compensation and securities industry regulation, and oversees the Globe's annual Board Games review of corporate governance practices of Canada's largest companies.
Sean Silcoff joined The Globe and Mail in January, 2012, following an 18-year-career in journalism and communications. He previously worked as a columnist and Montreal correspondent for the National Post and as a staff writer at Canadian Business Magazine.
Rachelle Younglai is The Globe and Mail's economics reporter. Prior to joining The Globe in October 2013, she worked for Reuters in Washington for seven years, where she covered the U.S. Congress, politics, economic policy and the U.S. Securities and Exchange Commission.