Intralinks is out with its latest deal flow predictor, which is based on sell-side M&A transactions across the world that are in preparation or have begun their due diligence stage.
The results? The firm found that the number of M&A deals to be announced over the next two quarters worldwide is expected to increase by 2 percent year-over-year, with the strongest growth expected in the real estate, energy and power and financials sectors.
In North America alone, conditions are projected to look a little better, with announced M&A deals expected to increase by around 3 percent year-over-year over the next six months, with financials, consumer and retail and energy and power sectors predicted to lead the growth. While this quarter is expected to jump by 4%, the third quarter may only increase by 2%.
Pitchbook also released some interesting findings this past week, saying that companies that are taken out by private equity firms are more than twice as likely to file for bankruptcy or go out of business than companies of a similar size that aren’t. Blame the debt that private equity firms use to finance their purchases.
GlobalData also shared some research on oil and gas dealmaking, saying that the sector saw a 45.9% jump in deal value but a 14.7% drop in deal volume in the first quarter over the same period last year.
The firm said Vinson & Elkins was the top legal advisor in the industry for the quarter with a total deal value of $8 billion. The firm was followed by Cleary Gottlieb Steen & Hamilton, which came in second on the strength of just two deals (worth $6.8 billion) and Latham & Watkins, which was a close third with six deals worth $6.7 billion.
Back in the Lone Star state, Texas lawyers were busy this past week, at least on a volume basis, logging a whopping 21 deals valued at more than $9 billion, versus 18 transactions worth $19.8 billion the previous week and 15 deals valued at $20.4 billion around the same time last year.
Capital markets activity picked up with six transactions worth $5.6 billion versus 14 M&A/private equity/venture capital deals valued at $3.4 billion.
Seventeen firms and 150 lawyers worked on all the deals. Gibson Dunn & Crutcher partner Hillary Holmes in Houston won the overachiever award, working on three capital markets transactions worth $4.8 billion – with the biggest not non-energy related.
Weekly Corporate Deal Tracker Roundup Stats
A compilation of weekly stats from The Lawbook's CDT Weekly Roundup
(Deal Values in Millions)
(Deal Values in Millions)
|Week Ending||Deal Count||Amount||Firms||Lawyers||M&A Count||M&A Value $M||CapM Count||CapM Value $M|
|November 27, 2021||9||$3.460.1||10||101||6||$1,758||3||$1,702.6|
|November 20, 2021||20||$22,792||15||157||12||$18,864.5||8||$3,928|
|November 13, 2021||21||$26,729||12||178||13||$11,822||8||$14,907|
|November 6, 2021||12||$8,303||13||157||10||$6,682||3||$1,621|
|October 30, 2021||21||$10,368||15||218||15||$9,24.4||6||$1,103.|
|October 23, 2021||21||$18.783.1||15||222||11||$12,314||10||$6,468.6|
|October 16, 2021||15||$3,868||11||118||15||$2,293||2||$1,575|
|October 9, 2021||20||$8,610||16||175||16||$7,795||4||$815|
|October 2, 2021||14||$6,250||11||137||10||$5,200||4||$1,050|
|September 25, 2021||11||$11,460||9||93||7||$10,200||4||$1,250|
|September 18, 2021||11||$16,603||8||99||8||$15,084||3||$1,519|
|September 11, 2021||17||$10,653||11||103||13||$8,503||4||$2,150|
|September 4, 2021||13||$7,222||10||89||11||$6,715||2||$507|
|August 28, 2021||12||$763||9||63||11||$663||1||$100|
|August 21, 2021||12||$29,659||7||79||11||$29,579||1||$80|
|August 14, 2021||22||$17,845||11||199||12||$12,805||10||$5,04|
|August 7, 2021||17||$13,670||12||139||15||$11,766||2||$1,904|
|July 31, 2021||21||$8,16||11||134||10||$3,574||10||$4,586|
|July 17, 2021||14||$4,009||11||124||12||$2,015||2||$1,994|
|July 10, 2021||16||$3,997||13||143||11||$1,597||4||$2,4|
|July 3, 2021||24||$7,492||13||94||16||$3,769||8||$3,722|
|June 26, 2021||10||$4,995||7||85||8||$3,847||2||$1,148|
|June 19, 2021||28||$16,830||8||228||9||$1,861||19||$14,968|
|June 12, 2021||26||$27,238||15||209||19||$25,602||7||$1,636|
|June 5, 2021||15||$15,539||13||100||13||$14,709||2||$600|
|May 29, 2021||35||$20,279||11||145||28||$18,64||7||$1,639|
|May 22, 2021||24||$53,208||14||174||17||$51,047||7||$2,161|
|May 15, 2021||18||$10,620||13||220||11||$5,870||7||$4,809|
|May 8, 2021||17||$10,400||11||156||15||$8,386||2||$2,500|
|May 1, 2021||21||$7,200||16||115||12||$3,808||9||$3,392|
|April 24, 2021||8||$20,200||9||3`||8||$20,200||0||0|
|April 17, 2021||14||$6,270||8||102||11||$4,0180||3||$2,260|
|April 10, 2021||15||$8,940||13||129||14||$7,990||1||$950|
|April 3, 2021||18||$19,513||10||151||12||$16,923||6||$2,590|
|March 27, 2021||27||$13,942||15||244||14||$4,300||13||$9,633.5|
|March 20, 2021||11||$2,046||4||102||3||$270||8||$1,776|
|March 13, 2021||15||$3,270||9||109||6||$538||9||$2,732|
|March 6, 2021||24||$13,617||10||196||13||$10,395||11||$3,222|
|February 27, 2021||19||$8,105||12||139||15||$4,970||4||$3,135|
|February 20, 2021||9||$8,820||9||153||8||$8,520||1||$300|
|February 13, 2021||12||$4,852.6||7||81||7||2,766||5||$2,086.6|
|February 6, 2021||18||$9,752||13||153||14||$5,222||4||$4,530|
|January 30, 2021||18||$9,449||9||182||15||$8753.8||3||$695.3|
|January 23, 2021||14||$8,150||8||118||6||$4,000||8||$4,150|
|January 16, 2021||17||$6,783||13||138||11||$2,400||6||$4,382.9|
|January 9, 2021||22||$6,829||14||135||18||$3,139.3||4||$3,690|
|January 2, 2021||7||$1,466||7||60||7||$1,466||0||0|
|December 26, 2020||18||$15,900||12||163||16||$5,300||1||$600|
|December 19, 2020||18||$9,769||14||110||14||$8,426||4||$1,343|
|December 12, 2020||10||$7,200||9||100||9||$3,325||1||$3,830|
|December 5, 2020||15||$4,261||9||122||9||$2,780||6||$1,481|
|November 28, 2020||19||$7,758||10||110||13||$4,003||6||$3,755|
|November 14, 2020||14||$864.1||14||157||12||$289.1||2||$575|
|November 7, 2020||13||$6,332||9||129||9||$2,483.5||4||$3,849|
|October 31, 2020||10||$3,995.8||8||103||6||$3,231.1||4||$754.7|
|October 24, 2020||6||$18,100||6||58||5||$17,709||1||$350|
|October 17, 2020||8||$351.9||5||55||8||$351.9||0||0|
|October 10, 2020||7||$5,229||3||50||4||$735||3||$4,494|
|October 3, 2020||14||$21,428||9||173||9||$17,535||5||$3,893|
|September 26, 2020||10||$12,770||8||93||5||$10,300||5||$2,470|
|September 19, 2020||14||$8,365||9||101||6||$1,020||8||$7,345|
|September 12, 2020||6||$4,406||8||59||3||$1,270||3||$3,136|
|September 5, 2020||11||$5,191||8||117||9||$4,061||2||$1,130|
|August 29, 2020||11||$2,531||9||94||5||$1,130||6||$1,401|
|August 22, 2020||18||$6,574||12||140||7||$1,930||11||$4,644|
|August 15, 2020||13||$4,991||10||97||7||$1,216||6||$3,775|
|August 8, 2020||12||$32,092||11||112||9||$30,457||3||$1,635|
|August 1, 2020||7||$5,287||8||76||5||$3,687||2||$1,600|
|July 25, 2020||9||$18,751||6||67||7||$18,403||2||$348|
|July 18, 2020||6||$1,982.5||5||50||4||$1,407.5||2||$575|
|July 11, 2020||11||$565.1||12||75||10||$65.1||1||$500|
|July 4, 2020||10||$8,889||8||98||9||$8,788||1||$100.3|
|June 27, 2020||8||$6,874||10||50||5||$4,972.5||3||$2,081.5|
|June 20, 2020||12||$4,444||9||115||7||$2,829||5||$1,615|
|June 13, 2020||6||$3,582||4||37||2||$350||4||$3,232|
|June 6, 2020||11||$3,213.7||8||65||7||$470||4||$2,743.7|
|May 30, 2020||8||$7,335||7||48||6||$4,639||2||$2,697|
|May 23, 2020||4||$432.4||4||34||3||$432.4||1||0|
|May 16, 2020||6||$310||6||34||5||$310||1||0|
|May 9, 2020||18||$5,630||16||124||14||$3,180||4||$2,450|
|May 2, 2020||15||10,400||10||90||8||$1,900||7||$,8,500|
|April 25, 2020||8||$3,400||9||36||5||$1,000||3||$2,450|
|April 18, 2020||19||$9,500||14||92||8||$185.7||11||$9,360|
|April 11, 2020||12||$6,000||9||40||5||$190||7||$5,800|
|April 4, 2020||14||$8,200||11||68||10||$2,200||4||$6,000|
|March 28, 2020||16||$6,500||13||96||10||$3,700||6||$2,800|
|March 21, 2020||11||$11,910||7||33||7||$2,250||4||$9,960|
|March 14, 2020||7||809.8||6||34||6||684.8||1||125|
|March 7, 2020||16||$2,500||15||70||13||$669||3||$1,400|
|February 29, 2020||13||$15,260||13||128||11||$11,760||2||$3,500|
|February 22, 2020||12||$3,700||10||92||10||$2,560||2||$1,130|
|February 15, 2020||16||$1,250||10||84||12||$35||4||$1,222|
|February 8, 2020||18||$6,080||14||123||14||$2,595||4||$3,485|
|February 1, 2020||21||$20,900||12||101||14||$17,860||7||$3,060|
|January 25, 2020||13||$7,430||13||62||12||$6,430||1||$1,000|
|January 18, 2020||23||$9,580||15||120||19||$6,580||4||$3,000|
|January 11, 2020||21||$14,200||18||199||16||$1,020||5||$13,200|
|January 4, 2020||22||$6,400||11||119||16||$3,204||6||$3,245|
|December 28, 2019||22||$7,150||19||175||18||$6,800||4||$327.4|
|December 14, 2019||24||$36,300||23||167||19||$9,500||5||$26,800|
|December 7, 2019||11||$10,400||11||55||7||$1,082||4||$9,370|
|November 30. 2019||14||$2,450||12||126||12||$1,760||2||$692.5|
|November 23, 2019||16||$1,995||10||41||11||$615||5||$1,380|
|November 16, 2019||15||$3,820||13||135||11||$2,500||4||$1,271|
|November 9, 2019||25||$12,900||17||182||23||$12,200||2||$575|
|November 2, 2019||10||$2,470||12||61||9||2,450||3||$22|
|October 26, 2019||12||$5,560||14||70||11||$3,860||1||$1,700|
|October 19, 2019||8||$6,600||8||138||8||$6,600||0||0|
|October 12, 2019||19||$4,300||14||55||16||$3,800||3||$500|
|October 5, 2019||18||$14,500||19||166||15||$11,100||3||$3,400|
|September 28, 2019||19||$8,100||18||132||18||$7,560||1||$550|
|September 21, 2019||14||$6,300||16||66||11||$2,160||3||$4,170|
|September 14, 2019||15||$23,800||12||56||11||$21,250||4||$2,570|
|September 7, 2019||17||$3,500||15||98||14||$1,900||3||$1,600|
|August 31, 2019||5||$8,700||6||50||5||$8,700||0||0|
|August 24, 2019||16||$10,000||14||82||15||$4,250||1||$5,750|
|August 16, 2019||10||$1,680||5||52||7||$650||3||$950|
|August 9, 2019||17||$17,700||15||68||14||$3,900||3||$13,800|
|August 2, 2019||13||$5,760||12||108||13||$5,760||NA||NA|
|July 27, 2019||11||$7,300||13||76||8||$6,570||3||$730|
|July 20, 2019||13||$11,800||13||125||11||$5,300||2||$6,500|
|July 13, 2019||10||$775||7||46||8||$542.5||2||$233|
|July 6, 2019||7||$2,500||9||85||7||$2,500||0||0|
|June 29, 2019||23||$8,290||15||154||17||$2,300||6||$5,970|
|June 22, 2019||17||$10,700||10||139||14||$7,700||3||$3,000|
|June 15, 2019||11||$13,500||14||160||11||$13,500||NA||NA|
|June 8, 2019||13||$2,870||17||55||11||$1,570||2||$1,300|
|June 1, 2019||10||$4,460||11||60||8||$4,140||2||$315|
|May 25, 2019||17||$4,360||14||79||14||$3,700||3||$612|
|May 18, 2019||22||$9,000||17||150||16||$3,400||6||$5,600|
|May 11, 2019||18||$19,800||17||177||15||$18,300||3||$1,500|
|May 4, 2019||10||$7,075||6||32||8||$6,900||2||$175|
|April 27, 2019||15||$3,200||14||117||14||$3,160||1||$40|
|April 20, 2019||13||$13,500||10||90||9||$12,200||4||$1,300|
|April 13, 2019||16||$38,900||14||91||14||$37,800||2||$1,100|
|April 6, 2019||12||$6,870||11||94||10||$6,730||2||$50|
|March 30, 2019||15||$6,470||12||84||10||$7,91.5||5||$5,677|
|March 23, 2019||18||$6,450||14||91||14||$5,042||4||$1,408|
|March 16, 2019||14||$10,180||12||115||11||$8,800||3||$1,300|
|March 9, 2019||9||$1,800||6||49||8||$1,300||1||$500|
|March 2, 2019||20||$3,033||16||107||14||$1,817||6||$1,262|
|February 23, 2019||12||$2,040||8||69||9||$614.6||3||$1,430|
|February 16, 2019||16||$9,970||18||77||16||$9,970||0||0|
|February 9, 2019||14||$6,400||10||110||14||$6,400||0||0|
|February 2, 2019||18||$6,740||15||99||16||$5,720||2||$950|
|January 26, 2019||13||$2,770||11||67||11||$918.95||2||$1,850|
|January 19, 2019||15||$3,819||16||76||12||$2,594||3||$1,225|
|January 12, 2019||18||$7,283||14||92||15||$1,683||3||$5,600|
|January 5, 2019||10||$529||12||50||10||$529||0||0|
|December 22, 2018||17||$2,570||13||87||14||$941||3||$1,629|
|December 15, 2018||10||$2,860||8||26||8||$264||2||$2,600|
|December 8, 2018||15||$1,819||16||65||12||$552||3||$1,267|
|December 1, 2018||12||$7,500||10||90||9||$1,200||3||$6,200|
|November 28, 2018||15||$4,500||11||107||14||$4,000||1||$500|
|November 19, 2018||18||$6,137||13||98||13||$2,142||5||$3,995|
|November 14, 2018||18||$9,200||13||152||15||$8,500||3||$694|
|November 6, 2018||16||$17,300||16||183||14||$16,361||2||$950|
|October 29, 2018||14||$14,400||18||127||17||$13,800||1||$600|
|October 24, 2018||13||$6,140||13||126||11||$5,122||2||$1,018|
|October 17, 2018||18||$18,390||15||125||14||$12,292||4||$6,098|
|October 10, 2018||29||$3,149||18||104||20||$1,647||9||$819|
|October 2, 2018||18||$9,300||11||67||14||$7,300||4||$2,000|
|September 25, 2018||13||$7,000||11||75||10||$6,000||3||$995|
|September 18, 2018||9||$3,570||7||44||9||$3,570||0||0|
|September 11, 2018||13||$5,900||10||132||13||$5,900||0||0|
|September 7, 2018||14||$5,000||15||86||11||$4,000||3||$1,000|
|August 29, 2018||15||$20,700||14||79||13||$4,700||2||$16,000|
|August 20, 2018||10||$12,400||11||53||8||$11,380||3||$1,057|
|August 14, 2018||12||$19,900||12||132||9||$18,889||3||$1,011|
|August 7, 2018||16||$68,600||11||106||13||$67,259||3||$1,340|
|July 31, 2018||15||$15,100||15||95||11||$13,060||4||$2,060|
|July 23, 2018||13||$2,130||15||60||10||$1,804||3||$1,100|
|July 17, 2018||14||$5,370||17||98||9||$4,310||5||$1,100|
|July 9, 2018||16||$11,200||15||74||10||$11,080||6||$862|
|July 3, 2018||13||$7,000||7||81||12||$6,330||1||$750|
|June 25, 2018||15||$8,800||13||97||9||$4,970||6||$3,930|
|June 18, 2018||13||$14,200||14||80||7||$221||6||$14,290|
|June 11, 2018||12||$6,300||8||96||8||$5,910||4||$803|
|June 6, 2018||13||$14,500||10||88||8||$14,154||5||$579|
|May 31, 2018||11||$4,890||10||63||8||$3,240||3||$1,790|
|May 22, 2018||15||$20,400||11||63||9||$19,808||6||$885|
|May 15, 2018||15||$4,700||15||106||10||$3,900||5||$643|
|May 9, 2018||11||$1,400||13||88||9||$1,300||2||$560|
|May 1, 2018||8||$14,250||7||88||7||$13,400||1||$450|
|April 24, 2018||12||$5,300||6||61||11||$4,470||1||$800|
|April 17, 2018||9||$1,800||10||44||7||$2,330||2||$1,434|
|April 11, 2018||11||$2,500||8||32||6||$1,690||5||$809|
|April 3, 2018||15||$13,400||11||121||9||$12,020||6||$1,090|
|March 28, 2018||10||$4,000||10||92||7||$3,870||3||$215|
|March 19, 2018||17||$5,800||13||51||10||$590||7||$5,165|
|March 12, 2018||15||$3,130||11||43||11||$2,360||4||$788|
|March 6, 2018||19||$5,400||13||116||10||$1,530||9||$4,860|
|February 27, 2018||20||$6,600||13||69||14||$5,530||6||$1,030|
|February 19, 2018||15||$5,500||14||111||10||$3,990||6||$1,980|
|February 12, 2018||23||$10,900||17||157||12||$7,110||11||$3,840|
|February 5, 2018||16||$8,600||13||100||7||$1,330||9||$7,800|
|January 30, 2018||11||$12,600||11||68||5||$7,300||6||$4,982|
|January 24, 2018||19||$9,400||15||129||5||$2,010||14||$7,337|
|January 18, 2018||10||$6,280||8||49||2||$2,100||8||$4,188|
|January 9, 2018||12||$16,500||12||92||9||$15,890||3||$475|
|January 3, 2018||10||$2,500||9||47||8||$2,350||2||$150|
|December 27, 2017||15||$9,000||15||113||9||$7,568||6||$1,784|
|December 18, 2017||15||$13,800||16||164||9||$13,010||7||$1,118|
|December 11, 2017||14||$9,700||10||126||12||$2,940||4||$8,500|
|December 4, 2017||6||$1,800||6||31||5||$1,510||1||$300|
|November 28, 2017||7||$3,850||8||76||4||$3,260||3||$285|
|November 16, 2017||10||$2,700||10||48||6||$1,840||4||$856|
|November 8, 2017||15||$2,380||17||91||10||$1,860||5||$516|
|November 1, 2017||12||$4,700||17||94||9||$3,400||4||$1,300|
|October 23, 2017||15||$10,500||10||67||10||$9,780||4||$1,530|
|October 18, 2017||6||$2,000||37||3||$225||3||$1,820|
|October 10, 2017||12||$6,570||100||9||$3,880||3||$3,360|
|October 2, 2017||8||$3,100||11||19||3||$1,630||5||$1,750|
|September 25, 2017||8||$4,880||8||79||5||$2,660||5||$2,070|
|September 18, 2017||9||$4,770||3||$300||6||$4,470|
|September 12, 2017||11||$4,430||8||$2,030||3||$2,400|
|September 1, 2017||4||$1,310||3||$317||1||$1,000|
|August 23, 2017||11||$13,640||9||8||$11,840||3||$1,800|
M&A/PRIVATE EQUITY/VENTURE CAPITAL
Equinor boosts stake in Gulf of Mexico oilfield for $965M
Norwegian oil company Equinor said it exercised its preferential right and is buying Royal Dutch Shell’s 22.45% stake in the Gulf of Mexico’s Caesar Tonga oilfield for $965 million in cash.
The sale preempts Shell’s previously agreed-to sale to Israeli oil and gas producer Delek Group in April of the same stake for the same price. The deal should close in the third quarter.
An Equinor spokesman said the company handled the deal with a team in-house but wouldn’t name the attorneys involved. Shell also won’t provide its in-house team.
Kari Potts is its senior legal counsel in Austin while Miguel Strauss is its chief counsel for mergers, acquisitions and divestments in Houston.
The transaction boosts Equinor’s stake to 46%, giving the company an additional 15,000 barrels of oil equivalent per day. Anadarko Petroleum – which is being bought by Occidental Petroleum – operates the field with a 33.7% stake while Chevron owns 20.25%.
Winston represents NGL on $890M Mesquite Disposals combo
Winston & Strawn said it represented NGL Energy Partners on a deal to combine the assets of Mesquite Disposals Unlimited with NGL’s water solutions business for $890 million in stock.
The group was led out of the Chicago office but included Houston team leaders Jeff Smith and Isaac Griesbaum along with Chris Ferazzi, Alex Niebruegge, Anna Gryska, Chris Cottrell, Alec Tanner and Madeline Gaffney. Barclays was NGL’s financial advisor.
In its May 14 announcement, NGL said it will issue $100 million of its 9% Class B fixed-to-floating rate cumulative redeemable perpetual preferred units to owners of Mesquite, who also have an option to receive 7 million common units at $16 per unit at closing.
NGL CEO Mike Krimbill said in a statement that the deal was part of the company’s strategy to focus on consolidating, integrating and expanding its water position. The company expects the funding will be leverage-neutral and the deal will significantly add to distributable cash flow per unit in fiscal 2020 and beyond.
The assets include a fully interconnected produced water pipeline transportation and disposal system in Eddy and Lea Counties, New Mexico, and Loving County, Texas. The Mesquite system will end up with 35 salt water disposal wells representing 1 million barrels per day of disposal capacity expected by year-end.
Most of the volumes on system are contracted under long-term acreage dedications and minimum volume commitments and 95% of the system volumes is delivered via pipeline.
HuntonAK aids Shell Midstream on $800M pipeline purchase
Houston pipeline operator Shell Midstream Partners agreed to buy additional interests in two pipelines from parent Royal Dutch Shell for $800 million.
The Explorer and Colonial pipelines move gasoline, diesel and jet fuel to the Midwest and East Coast.
Shell Midstream is buying 25.97% of Explorer and 10.125% of Colonial, boosting its stakes to 38.59% and 16.125%, respectively.
Hunton Andrews Kurth is representing the conflicts committee of the board of Shell Midstream’s general partner. The Houston team was led by corporate partner Mike O’Leary and included corporate partner John Clutterbuck and associate Michael Wright and tax partner Robert McNamara. Environmental partner Lisa Shelton weighed in from Austin.
Shell was represented in-house by senior legal counsel Stephanie Conklin Beauvais, who previously was a partner at Andrews Kurth.
Winston, Baker McKenzie aid on Schlumberger’s $400M in divestitures to Wellbore
Rhône Capital-based Wellbore Integrity Solutions announced May 14 that it will acquire Schlumberger’s Drilco, Thomas Tools and Fishing & Remedial Services units along with part of a manufacturing facility in Houston for $400 million. The deal has to clear regulators but should close by year-end.
Schlumberger’s in-house counsel on the deal was William Batzer and Clay Platt. Winston & Strawn partner Doug Atnipp in Houston provided outside help along with Alex Niebruegge, Dick Wynne, Jeff Smith, Anna Gryska and Alec Tanner.
Wellbore CEO David MacNeill said the company’s customers will benefit from its expansion as an independent service and product supplier with a global footprint. At closing, Wellbore will have close to 1,100 employees and operate in 25 countries.
Kristi Vilay, president of bits and drilling tools at Schlumberger, said the divestiture will help the company focus on its core drilling strategy, including the development of automation technologies that can be enhanced by digital enablement.
Schlumberger has announced asset sales that will bring in $1 billion in cash with additional divestitures to come, including Schlumberger Production Management assets with its Argentina unit being the most likely this year, RBC Capital Markets analyst Kurt Hallead said in a note.
The oilfield services giant is selling assets so it reinvest in the businesses in which it has the number-one or number-two market share position and generate the highest relative returns, Hallead added. “The businesses they are pruning are limited in terms of adding value through technology (fishing and rental) and/or are not being valued appropriately by the market (ROK deal).”
Rhône has been investing for 24 years. It has $6 billion in assets under management across private equity and real estate.
Hunton AK, Shearman work on DTE’s acquisition of WGL pipeline stake for $275.3M
DTE Midstream is buying an additional 30% stake in the Stonewall natural gas system in West Virginia from WGL Midstream Inc. for $275.3 million, bringing its stake to 85%.
Hunton Andrews Kurth counseled WGL, including Houston partner Mike O’Leary, along with partners Phil Haines, Tom Ford and Allison Mantor. Houston associates Garrett Hughey and Caitlin Sawyer also worked on the deal.
The transaction is expected to close late in the second quarter or in the third quarter. DTE Midstream has been operating the 67-mile pipeline for nearly three years.
DTE Midstream president David Slater said in a statement that the pipeline complements its midstream business and provides a platform for continued value creation supported by a solid underlying resource.
Spruce Finance attracts $50M from HPS
Spruce Finance, which owns and operates distributed generation solar and residential energy assets in the U.S., raised $50 million in funding from owner HPS Investment Partners.
Schulte Roth & Zabel in New York counseled the investor while Spruce general counsel Jonathan Norling in Houston handled the funding in-house.
Led by CEO Christian Fong, Spruce claims to be the second-largest privately held residential solar company in the U.S. The investment comes as it pursues opportunities to add operational solar assets to its 150-megawatt portfolio, including community and commercial solar assets.
The funding follows Spruce’s recent closing of a $208 million senior secured debt financing of its residential solar assets.
The company’s unit Energy Service Experts provides asset management services to more than $1 billion of residential solar assets, including Spruce’s own assets and third-party portfolios.
Tim Distler recently joined Spruce as VP of corporate development to lead the company’s project finance and M&A activity. He previously led a solar development and finance platform for LG Electronics and was head of project finance at RET Capital.
HPS is a global investment firm with more than $48 billion of assets under management.
Bracewell aids Ophir on $35M offshore sale to group
Bracewell said it advised a unit of Ophir Energy plc on the sale of its 23.33% interest in Block 5 of the Salina Basin, including the Cholula discovery, off the coast of Mexico to partners Murphy Oil, Wintershall Dea and Petronas for $35 million.
The lawyers were mostly in London but included Houston partner and foreign legal consultant Manuel Vera. The transaction has to clear regulators but is expected to close by year-end.
Bracewell said the sale marks the firm’s third recent upstream oil and gas M&A transaction offshore Mexico. The firm also represented Eni on the sale to Qatar Petroleum of a 35% interest in Block 1 in Campeche Bay, which includes the Amoca, Miztón and Tecoalli discoveries, and Eni’s strategic joint venture with Lukoil involving Blocks 10, 12 and 14 in the Sureste Basin.
The firm also represented Cheiron Petroleum Group on the first upstream debt transaction for an independent oil and gas company in the deregulated Mexican market.
Ophir said the transaction is part of its strategy to minimize its exposure to exploration and that the proceeds will help enhance liquidity. Ophir is in the midst of being acquired by Indonesia’s Medco.
V&E, Eversheds aid on AltaGas’s $20M biomass stake sale to Atlantic Power
Vinson & Elkins said it advised AltaGas Power Holdings (U.S.) Inc. on the sale of its equity interests in contracted biomass plants to Atlantic Power Corp. for $20 million.
Also advising were partner Jason McIntosh and associates Brian Russell and Curt Wimberly on tax; senior associate Matt Dobbins and associates Jennifer Cornejo and Austin Pierce on environmental; partner John Decker on energy regulatory; partner Sean Becker on labor/employment; and partner Stephen Jacobson and senior associate Kristy Fields on executive compensation/benefits.
Eversheds Sutherland represented Atlantic Power with a group that included counsel Joshua Belcher in Houston.
Atlantic Power said May 15 it will acquire 50% of Craven County Wood Energy, a 48-megawatt biomass plant in North Carolina that’s been in service since 1990, and 30% of Grayling Generating Station, a 37-megawatt biomass plant in Michigan that has been in service since 1992.
CMS Energy owns the other half of the Craven plant and Fortistar holds 20% and CMS owns 50% of the Grayling plant. Both plants are operated by a CMS affiliate and don’t have any project-level debt.
The deal has to clear the Federal Energy Regulatory Commission and third-party consents and is expected to close by mid-year with funding from the company’s discretionary cash.
Boston-based Atlantic Power has been on a buying spree, picking up the remaining ownership interests in the Koma Kulshan hydro facility in July and the Allendale and Dorchester biomass plants in South Carolina, which are expected to close later this year.
Atlantic Power CEO James J. Moore Jr. said in a statement that the acquisitions represent a meaningful addition to the company’s contracted cash flows and will contribute an estimated $8 million to $10 million in EBITDA per year. “We acquired the five plants at what we consider to be attractive prices,” he said.
Moore said the company continues to reduce debt after cutting more than $1 billion since 2014. It had $198 million in liquidity as of March 31 and has been repurchasing stock as it purchases more cash flow-producing plants.
Kastner Gravelle aids Novi on $7M Cottonwood funding
Novi Labs, an Austin-based provider of oil well planning software, raised $7 million in Series A funding from Cottonwood Venture Partners and Bill Wood Ventures.
Kastner Gravelle out of Austin represented Novi Labs, including Evan Kastner, Rob Montgomery, Earl Henderson and Mark Mallery. Koenig, Oelsner, Taylor, Schoenfeld & Gaddis in Denver represented Cottonwood.
Novi said the funding follows customer growth and field-testing of its well planning technology, which helps oil and gas companies optimize economic returns for new wells using artificial intelligence and predictive analytics.
The company plans to use the recently raised funds to scale its technology and team to meet growing demand by shale producers.
Senior software executive Scott Sherwood was named Novi’s new CEO to position the company for the next stage of growth. He previously was CEO of Packet Design, which was sold to Ciena last year, and worked at NetQoS, Cache IQ and ScienceLogic.
Novi founder Jon Ludwig will become president, focusing on expanding Novi’s technology and customer growth.
Cottonwood is led by Jeremy Arendt and based in Houston. Bill Wood Ventures is led by Austin Ventures and Silverton Partners founder Bill Wood in Austin.
Egan Nelson advises NarrativeDx on $2.97M funding
Austin-based NarrativeDx said it raised $2.97 million in funding from unnamed investors.
Egan Nelson represented the company, including José Ancer and Jay Buchanan.
NarrativeDx said in February that it had secured an undisclosed amount of funding from Christiana Care Health System, Summation Health Ventures and the Texas Medical Center with participation from existing investors HealthX Ventures and Cultivation Capital. Egan Nelson’s Ancer worked on that matter as well.
Led by founder and CEO Kyle Robertson, NarrativeDx uses patented artificial intelligence to identify actionable insights from patients and provider feedback so as to improve patient satisfaction scores, increase operational efficiency and decrease employee turnover.
Kirkland, Latham aid on GIC’s purchase of Five Point stake in WaterBridge
Five Point Energy said May 17 it was selling a minority equity stake in WaterBridge Resources to Singapore sovereign wealth fund GIC.
The parties didn’t disclose terms but said the purchase price implies a $2.8 billion enterprise value for WaterBridge.
Latham & Watkins represented Five Point and WaterBridge, which used Barclays as their financial advisor.
GIC and Five Point also have committed to provide more equity capital to facilitate WaterBridge’s pipeline of accretive acquisition and organic growth opportunities.
After the closing of the recently signed definitive agreement with PDC Energy Inc., WaterBridge said it will own and operate 550 miles of pipeline connecting 56 water handling facilities with 1.4 million barrels per day of produced water disposal capacity throughout the southern Delaware Basin. It has long-term contracts from 13 producers in the basin.
WaterBridge’s Arkoma platform consists of 10 saltwater disposal wells with 170,000 barrels per day of produced water disposal capacity. The facilities are connected via 175 miles of pipeline services under long-term contracts from five producers.
David Capobianco, CEO and managing partner of Houston-based Five Point, said in the statement that there’s tremendous demand for the development of large, integrated water handling networks so producers can increase their development programs.
WaterBridge CEO Stephen Johnson said the company has “unparalleled access” to the capital needed to continue executing its growth strategy.
Five Point manages more than $2.5 billion of capital. GIC has more than $100 billion in assets under management.
Kirkland, V&E, Locke Lord aid on Spur/KKR partnership to purchase Percussion’s Permian assets
Spur Energy Partners and KKR announced that they have partnered to purchase Permian oil and gas properties from Carnelian-backed Percussion Petroleum for an undisclosed sum. The parties expect to close the acquisition this quarter.
V&E also advised Spur on forming the partnership with KKR that plans to acquire large, high-margin oil and gas production development assets across the Lower 48 states.
That team was led by partner Matt Strock and senior associate Matthew Falcone with assistance from associates Brittany Smith and Natalie Steen. Also advising were partner John Lynch and associate Neil Clausen (tax); partner Stephen Jacobson, senior associate Kristy Fields and associate Gina Hancock (executive compensation/benefits); and partner Sean Becker (labor/employment).
Locke Lord represented Spur on the Permian acquisition, including partners Hunter Summerford and Terry Radney in Houston. Additional assistance was provided by partners Mitch Tiras, Michael Blankenship, Walker Clarke, Jerry Higdon, Jonathan Pelayo, Ed Razim and Buddy Sanders and associate Thomas Johnson, all of Houston.
The purchase of the Permian northwest shelf assets includes interests in 380 gross producing wells and 22,000 net acres situated in the core of the Yeso formation in Eddy and Lea Counties, New Mexico, along with associated water and midstream assets. The properties produced 9,200 net barrels of oil equivalent per day in the first quarter.
Spur was founded by Jay Graham, who previously was CEO of WildHorse Resource Development Corp., which Chesapeake Energy Corp. bought in February for $3.98 billion. Before that he was CEO of Memorial Resource Development Corp., which Range Resources bought in 2016 for $3.3 billion.
Dash Lane led the investment from KKR, saying the acquisition is the first step of what it expects to be a multi-billion-dollar partnership with Spur.
Gibson Dunn aids CenterOak on Service Chambers investment, Moore merger
Gibson Dunn & Crutcher said it advised Dallas private equity firm CenterOak Partners on its investment in Orange County-based Service Champions and its merger with Moore Home Services. Terms weren’t disclosed.
Partner Robert Little led the corporate team, which included associates Joseph Orien and Kiel Sauerman. Partner David Sinak and associate Michael Cannon advised on tax aspects while partner Krista Hanvey and associate Tyler Richardson advised on benefits. All are in Dallas.
Greenberg Glusker Fields Claman & Machtinger in Los Angeles counseled Service Champions.
CenterOak said May 15 that the merger creates a leading provider of home maintenance and repair services across southern and northern California and one of the largest residential HVAC contractors on the West Coast.
CEO Leland Smith will lead the combination while keeping a large ownership stake. Randall Fojtasek led the deal from CenterOak, which has managed more than $1.8 billion in equity capital commitments and completed 100 acquisitions representing $4.1 billion in transaction value.
Queen Saenz + Schutz aids Greenridge’s Veriforce on sale to PEC Safety
Queen Saenz + Schutz advised Greenridge Investment Partners-backed Veriforce on its sale to Thoma Bravo’s PEC Safety for an undisclosed sum.
Thomas Queen was the lead with support from Andrea Schutz, Carly Mayer, Jake Mayers and Paul Saenz.
Harris Williams, a unit of PNC Financial Services Group, provided financial advice to Veriforce, including Mike Wilkins, Erik Szyndlar, Brian Titterington and Jay Petrie.
Houston-based Veriforce provides qualification, drug and alcohol, safety and insurance and training software to the oil and gas, utility, manufacturing, chemical and construction markets. It has 200 clients and 4,440 contractor firms and 185,000 registered individuals within its system.
PEC provides a technology-enabled contractor management service for reporting and measuring contractor risk, safety and compliance information to operators. It has more than 110 operators who manage 15,000 contractors and has trained 1.3 million workers through 3,000 PEC authorized instructors.
Greenridge is based in Austin. Thoma Bravo, which has offices in San Francisco and Chicago, focuses on software and technology-enabled services sectors with $30 billion in capital commitments. Its investments have included Quorum Software, which acquired Houston-based Coastal Flow Measurement Inc. earlier this year, and Austin-based SolarWinds, which the firm took public in October.
Randa buys Thompson & Knight-advised Haggar for undisclosed sum
Randa Accessories announced May 7 that it was buying Dallas-based Haggar Clothing Co. for an undisclosed sum. It planned to close the transaction in 45 days.
Haggar general counsel Marc Joseph said he tapped Thompson & Knight partner Michael Titens for outside legal advice. Haggar assistant general counsel Jennifer Schulz also worked on the transaction. Drinker Biddle & Reath in New York represented Randa.
A privately-held company founded in 1910, Randa produces belts, wallets, headwear, slippers, luggage, neckwear and jewelry under 50 brands, including Levi’s, Tommy Hilfiger, Columbia Sportswear, Dickies, and Kenneth Cole. The company distributes its products through 20,000 stores and employs 4,000 people at 26 offices in 10 countries.
Haggar, which began in a one-room office in Dallas in 1926, has expanded from a manufacturer of men’s fine dress pants and slacks into one of the most recognized apparel brands in the market. It also owns Montreal-based Tribal, which was founded in 1971 and is the largest women’s sportswear supplier to the specialty boutique market in North America with 2,400 active accounts.
Randa CEO Jeffrey Spiegel said in a statement that the transaction brings together two successful, financially strong and complementary businesses to better serve its retail and brand partners, associates and consumers.
Randa said that revenues for the combined companies will be more than $1 billion this year.
Haggar CEO Michael Stitt said Randa will add scale, resources, expertise, marketing and retail partnerships to the company. The company will stay in Dallas and be managed by its current leadership team.
Haggar claims to have created the first ready-to-wear, finished bottom, pre-cuffed pant in 1938 and to have coined the word “slacks” to be worn during “slack time.” During World War II it kept factories running 24 hours a day to supply 10 million uniforms to the U.S. military.
In 1980 the company began production of sport coats, vests and Haggar “Custom Fit” suits. It has 80 branded brick-and-mortar retail locations and a direct-to-consumer ecommerce platform and its products are sold in 10,000 stores throughout North America, including Kohl’s, JCPenney, Macy’s, Target and Belk.
Randa is funding the acquisition with cash and committed financing provided by Wells Fargo Bank and JPMorgan Chase Bank.
Gibson Dunn, Baker Botts aid on Waste Management’s $4B offering
Gibson, Dunn & Crutcher said it represented the Credit Suisse-led underwriters and dealer managers on Waste Management Inc.’s $4 billion offering of senior notes.
Houston partner Hillary Holmes led the deal team, which included associates Harrison Tucker, Melissa Pick and Jordan Rex. Baker Botts counseled Houston-based Waste Management with a group led by partner Jason Rocha in Houston.
The notes include $750 million worth of 2.950% senior notes due June 15, 2024; $750 million worth of 3.200% senior notes due June 15, 2026; $1 billion worth of 3.450% senior notes due June 15, 2029; $500 million worth of 4.000% senior notes due July 15, 2039; and $1 billion worth of 4.150% senior notes due July 15, 2049.
Waste Management, which provides trash and recycling services, said the notes will be fully and unconditionally guaranteed by its unit Waste Management Holdings Inc. Standard & Poor’s has assigned the notes a A- rating, Fitch BBB+ and Moody’s Baa1.
The offering is expected to close May 22. The company plans to use the net proceeds to pay part of its acquisition of Advanced Disposal Services Inc. and related fees and expenses, to fund a previously announced tender offer to purchase for cash certain senior notes issued by Waste Management Inc. and Waste Management Holdings Inc. and for general corporate purposes.
If the acquisition isn’t consummated on or before July 14, 2020, the company will be required to redeem all of the outstanding 2024, 2026, 2029 and 2039 notes at a price equal to 101% of the principal amount plus accrued and unpaid interest to the redemption date.
Baker Botts, V&E aid Transocean on $525M notes issue
Baker Botts said May 16 that it represented Transocean Ltd. on a notes offering worth $525 million.
Others on the team were Dallas partner Luke Weedon, Austin senior associate Clint Culpepper and Dallas associate Taylor Courtade on finance; partners Derek Green and Jon Lobb and associate Dominick Constantino on tax (all Houston); and environmental associate Laura Williams, also of Houston.
Transocean’s in-house counsel included senior associate general counselDaniel Ro-Trock in Houston as well as counsel Simone Ramcharitar in the Caymen Islands. Brady Long is the company’s general counsel.
Transocean said unit Transocean Sentry Ltd. said the offering involved senior secured notes due 2023 to eligible purchasers pursuant to Rule 144A/Regulation S.
The notes will be guaranteed by Transocean Ltd., Transocean Inc. and units that own the harsh environment semi-submersible drilling rigs Transocean Endurance and Transocean Equinox andbe secured by a lien on each of the rigs and certain other related assets. The notes will bear interest at the rate of 5.375% per year and be callable after May 15, 2021.
The offering is expected to close on or about May 24. Transocean Sentry expects to receive $517 million in net proceeds, which will be used for general corporate purposes.
Transocean announced in March that its chairman Pete Miller wouldn’t seek reelection this year, with CEO Chad Deaton taking over. Miller is now chairman of MHWirth, a unit of oil service investment firm Akastor.
Gibson Dunn, Sidley advise on NuStar’s $500M senior notes offering
Gibson Dunn & Crutcher also said it represented the underwriters on NuStar Energy’s offering of senior notes. RBC Capital Markets led the underwriters.
Houston corporate partner Hillary Holmes also led that team, which included Houston tax partner James Chenoweth, Dallas corporate associate Louis Matthews and Houston corporate associate Melissa Pick.
Sidley counseled NuStar with a group led by partner George Vlahakos in Houston.
NuStar said May 16 that the offering involved 6.00% senior notes due June 1, 2026. They were priced at 100% of par at a yield to maturity of 6.00%.
The settlement date for that offering is expected to be May 22. Those notes will be fully and unconditionally guaranteed by NuStar Energy as parent guarantor and NuStar Pipeline Operating Partnership, a unit of NuStar Energy, as affiliate guarantor.
NuStar, which operates liquids terminals and pipelines, expects to use the net proceeds for general partnership purposes, including the funding of capital expenditures and to repay amounts outstanding under NuStar Logistics’s revolver.
Gibson Dunn advises U.S. Well Services on its $325M infusion
Gibson Dunn & Crutcher said it represented U.S. Well Services on raising $325 million in financing.
Gibson Dunn also counseled the company on a new $75 million second lien, delayed draw credit facility in December, including Holmes and Prichard.
The funding consisted of a $75 million ABL revolving credit facility and $250 million senior secured term loan.
U.S. Well Services plans to use the proceeds to refinance indebtedness, provide growth capital for the expansion of its electric hydraulic fracturing fleet and provide liquidity for working capital.
Piper Jaffray unit Simmons Energy said it was U.S. Well Services’ financial advisor on the financing. It said it ran a highly competitive process, resulting in several term sheet proposals and a deal with attractive pricing, structure and terms to the company.
Pillsbury assists Upland Software on $151M stock offering
Upland Software Inc. said May 13 that it closed a previously announced underwritten public offering of 3.79 million shares of its stock worth $151 million.
Pillsbury Winthrop Shaw Pittman advised Upland, including partner Steve Tyndall and associate Emily Ashby in Austin.
Upland’s in-house counsel included general counsel Kin Gill and senior corporate paralegal Stephanie Deadmon.
The offering was priced at $42 per share and included the underwriter’s option of 495,000 shares, which were exercised in full.
V&E counsels New York Mortgage on $107.3M stock offering
Vinson & Elkins said it advised New York Mortgage Trust Inc., or NYMT, on its $107.3 million underwritten public offering of its common stock, which closed May 13.
The V&E team included senior associate Doug Lionberger in Houston. The firm also counseled New York Mortgage on a $90 million underwritten public offering of common stock in March.
NYMT said the offering involved 18 million shares of common stock for gross proceeds of $109.4 million.
Morgan Stanley, Barclays, Credit Suisse, J.P. Morgan and UBS Investment Bank were joint bookrunning managers for the offering.
NYMT plans to use the net proceeds for general business purposes, which may include acquiring single-family residential and multi-family credit investments, other types of mortgage-related and residential housing-related assets and general working capital purposes.
Rattler Midstream Partners gave more information about its proposed initial public offering, saying in a SEC filing that it aims to sell 33.3 million shares at between $16 to $19 per share, which would raise as much as $632.7 million for the Midland infrastructure services provider. Rattler, which is a unit of Diamondback, earned $55.8 million on sales of $185.5 million last year. Credit Suisse, BofA Merrill Lynch, and J.P. Morgan are underwriters. Rattler filed plans for an IPO last summer with a $100 million placeholder. Akin Gump Strauss Hauer & Feld partners Seth Molay in Dallas and John Goodgame in Houston are counseling Rattler while Latham & Watkins partners J. Michael Chambers and John M. Greer are assisting the underwriters.
Meanwhile, Blackstone-backed Vine Resources, which explores for and produces natural gas in the Haynesville Shale, withdrew registration for a $500 million IPO. It didn’t give the reason. The company originally filed the issue in April 2017. Credit Suisse and Morgan Stanley were the lead underwriters, who were being counseled by Vinson & Elkins partners Alan Beck and Thomas G. Zentner. Kirkland & Ellis partners Matthew R. Pacey and Michael W. Rigdon were representing the company.
Houston helicopter services provider Bristow Group Inc., whose management has been criticized by activist investors, filed for Chapter 11 bankruptcy protection on May 11. The company listed $2.86 billion in assets, $1.89 billion in debt and 1,000 to 5,000 creditors. Senior secured noteholders made a $75 million term loan to Bristow before the filing and committed another $75 million for debtor-in-possession financing upon court approval.
Baker Botts is counseling the company with a group led out of New York that includes partners Jim Prince and Omar Alaniz, special counsel Ian Roberts and associate Kevin Chiu, all of Dallas. Non-bankruptcy lawyers who are working on the $75 million term loan piece of the transaction include Houston partners Justin Hoffman, Austin special counsel Shelley Austin, Houston special counsel Lyman Paden and Austin associate Sarah Christian.
Wachtell, Lipton, Rosen & Katz also is counseling Bristow while Alvarez & Marsal is serving as its restructuring advisor. Houlihan Lokey is its financial advisor. Davis Polk & Wardwell is representing the senior secured noteholders and PJT Partners is their financial advisor.
Whataburger confirmed that it’s hired Morgan Stanley to help it explore a possible sale. As The Texas Lawbook reported last week, Reuters said that the San Antonio-based hamburger chain was considering a sale that could bring in $6 billion, citing sources.
The company’s general counsel is Michael Gibbs, who previously served in the same role at Big Boy Restaurants in Michigan.
Thompson & Knight partner Amy Curtis said with a brand as iconic as Whataburger, public relations and communications issues with customers and employees will be as important as the legal issues in any potential transaction.
“Customers will want to know that a new owner – whether it acquires a minority or larger stake – is not going to change what they love about Whataburger,” she said.
Curtis added that those factors will impact deal negotiations as well because an investor will also want assurance that the company’s relationship with its customers and employees “will continue to be strong after a deal is inked.”
Among the takeover rumors last week: Kohl’s has approached Plano-based At Home Group about a takeover, according to Reuters; Unilever is considering a $1 billion takeover offer for Austin skincare brand Drunk Elephant, which is backed by VMG Partners, according to the U.K.’s Daily Telegraph; Reliance Gathering, a Midland crude oil gathering company backed by Metalmark Capital and Monarch Investments, is exploring a sale that could fetch around $500 million, per Bloomberg; and Yorktown Partners is seeking a buyer for The Woodlands-based Vaquero Midstream, which could fetch over $1 billion, also from Bloomberg.