Houlihan Lokey ranked-one in deal count, handling 11 transactions in the state. Claire Poole reports on the latest exclusive Mergermarket numbers.
Two dozen corporate lawyers at V&E and Latham worked feverishly for a few weeks with their respective clients at Southwest Airlines and American Airlines to secure billions of dollars in payroll relief funding from federal government. A senior in-house lawyer says the agreements are the most complex and important transactions for both airlines since 2014. The Lawbook has details.
Last week was a big one for capital markets transactions, in spite of…well, everything. M&A? Not so much. In her weekly CDT Roundup, Claire Poole has names and numbers for the deals that kept Texas lawyers busy while they WFH.
Deals are being terminated or renegotiated all over the place due to the coronavirus and fallen oil prices, with one seller in Texas taking a 30% haircut. Meanwhile, deal activity among Texas lawyers is beginning to slide with no letup in sight.
For 51 consecutive quarters, energy was the dominant sector for M&A in Texas. That streak ended during the first three months of 2020, as M&A activity plunged in deal value to levels not witnessed since the Great Recession. Not one of the seven biggest-dollar Texas deals had anything to do with oil and gas, according to Mergermarket. The Texas Lawbook has the details.
First quarter global M&A activity fell back to levels not seen since 2013 with U.S. results eerily similar to 2008. Meanwhile, dealmaking involving Texas lawyers keeps chugging along thanks to transactions already in the works and some companies’ moves to shore up liquidity.
Commodity prices fell precipitously in the first quarter of 2020 as crude producers are getting hit on both the supply and demand sides. The U.S. is reportedly only weeks away from running out of crude oil storage capacity. Many E&P and midstream companies are evaluating whether to reduce production or pipeline capacity and/or shut in wells. The issue became more urgent last weekend when the Texas Railroad Commission reported that some oil companies are already receiving letters from shippers demanding production cuts and citing the unavailability of storage capacity.
The results contrast with Haynes and Boone’s fall survey, which found the largest share of respondents predicting a 10% decrease during redetermination season.
Preliminary data shows that global deal value slid 28% in the first quarter, with private equity firms making up a bigger chunk. Texas dealmakers haven’t been immune, although last week saw flat activity year-over-year with deal closings, restructuring work and private equity reloading to hunt for opportunities.
The Texas Lawbook’s Corporate Deal Tracker documents all M&A activity and securities offerings handled by in-house and outside counsel in Texas. Today, The Lawbook publishes a list of the 139 IPOs and equity and debt offerings that Texas lawyers worked on in 2019.