It was a slow second quarter for global M&A.
Deal value in the period amounted to $842 billion, a 13% decrease from the first quarter and a 27% slide over the second quarter of last year, according to Refinitiv. Deal count also slid to its lowest quarterly level since the 2008 financial crisis, according to the financial data provider.
However, the first half sized up to be the third strongest on record, with the total value reaching around $2 trillion, a 15% jump over the second half of last year. But the period was still a 12% slip over the first six months of 2018 and “megamergers” – those valued at $10 billion or more – accounted for 42% of the first half total.
Deal bankers and lawyers blame trade jitters and geopolitical risks for the second quarter’s drop in activity, particularly the dearth of cross-border deals over the last year or so.
U.S. M&A activity in the quarter wasn’t too dismal, falling by only 3% to $466 billion over the same period last year, Refinitiv reported. But over the first half of the year, the value of announced U.S. deals hit $1.1 trillion, up 20% over a year ago and the first time that U.S. deal volume crossed the $1 trillion mark in the first six months of the year, according to DealBook.
Private equity dealmaking rose to nearly an all-time high in the second quarter of $136 billion, Refinitiv reports. DealBook says JPMorgan, Goldman, Morgan Stanley, Citigroup and Evercore were the top overall M&A advisors by deal volume.
Among the biggest deals involving Texas lawyers was Occidental Petroleum Corp.’s agreement to buy Anadarko Petroleum Corp. for $38 billion. Billionaire activist investor Carl Icahn has called the deal a bet-the-company “fiasco” and last week said he’s seeking to replace four of the nine directors on Oxy’s board and change the company’s charter and by-laws.
Icahn, whose affiliates own around 4% of Oxy’s stock, blames the company’s directors for approving the deal at expensive financing and structuring it so shareholders can’t weigh in. He thinks the board needs a new strategic review committee to ensure that only shareholder-boosting alternatives will be considered.
Occidental responded by saying it welcomes constructive input toward its goal of maximizing long-term value, thinks the Anadarko deal will create significant value and enhanced returns for shareholders and remains focused on completing the transaction in the second half of the year.
Meanwhile, this past week, dealmaking involving Texas lawyers was brisk in terms of count but light in terms of value before the July 4 holiday. There were 23 transactions valued at $8.29 billion versus 17 deals worth $11.78 billion the previous week and 15 transactions valued at $8.8 billion during the same week last year.
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|
|May 14, 2022||11||$306.6||9||80||10||$306.6||1||$225|
|May 7, 2022||16||$10,451.75||12||108||12||$1,827||4||$8,624.75|
|April 30, 2022||16||$2,296.5||16||157||12||$895.5||4||$1,401|
|April 23, 2022||10||$2,241||11||58||8||$1641||2||$600|
|April 16, 2022||11||$6,643||7||156||8||$2,359||3||$4,284|
|April 9, 2022||17||$4,429||14||184||11||$1,690||6||$2,739|
|April 2, 2022||13||$1,755||8||84||10||$1,145||3||$610|
|March 26, 2022||11||$3,205||8||65||6||$200||5||$3,005|
|March 19, 2022||13||$2,239.17||9||106||13||$2,239.17||0||0|
|March 12, 2022||18||$12,016||11||239||15||$11,965||2||$51.35|
|March 5, 2022||17||$6,786||13||137||13||$5,161||4||$1,625|
|February 26, 2022||12||$5,095||8||149||9||$4,437.5||3||$658|
|February 19, 2022||17||$22,229||17||174||14||$21,354||3||$875|
|February 12, 2022||12||$2,344.7||10||73||8||$641.7||4||$1,703|
|February 5, 2022||11||$2,503||8||99||11||$2,503||0||0|
|January 29, 2022||11||$3,872||12||101||12||$3,872||0||0|
|January 22, 2022||13||$5,143.5||10||99||12||$4,842.5||1||$301|
|January 15, 2022||12||$7,605||9||155||9||$6,480||3||$1,025|
|January 8, 2022||13||$8,256.2||11||102||13||$8,256.2||0||0|
|January 1, 2022||9||$1,273.8||6||50||9||$1,273.8||0||0|
|December 25, 2021||21||$4,734.75||11||176||16||$3,410||5||$1,324.75|
|December 18, 2021||26||$7,325.2||15||193||18||$3,640.2||8||$3,685.2|
|December 11, 2021||16||$5,017||10||109||13||$1,417||3||$3,600|
|December 4, 2021||14||$2,310||8||86||8||$2,310||6||$1,882.05|
|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||$8,160||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||31||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|
The activity involved 15 law firms and 154 Texas lawyers handling 17 M&A/private equity/venture capital transactions valued at $2.3 billion and six capital markets/financing deals worth $5.97 billion. Industries included energy, of course, as well as health care, technology, real estate and media.
M&A/Private Equity/Venture Capital
Jones Day aids NRC on $966M sale to US Ecology
Jones Day said June 24 that Dallas partner Alain Dermarkar led the deal team advising NRC Group Holdings Corp. on its sale to US Ecology Inc. in a all-stock deal with an enterprise value of $966 million.
Senior associate Kyle Park assisted Dermarkar on the transaction. Dechert counseled US Ecology led by a lawyer out of its Philadelphia office (Dechert has a small office in Austin).
Bank of America Merrill Lynch and Houlihan Lokey are US Ecology’s financial advisors and Evercore is assisting NRC. Wells Fargo Securities and Bank of America Merrill Lynch committed to the financing for the transaction.
Houston-based NRC is a global provider of environmental, compliance and waste management services, including in the Permian and Eagle Ford oil and gas basins. It’s headed by CEO and president Christian T. Swinbank.
Boise-based US Ecology is a top North American provider of environmental services to commercial and government entities. The company is led by chairman and CEO Jeffrey Feeler, who will continue in his role.
The parties said the transaction will create a national leader in industrial and hazardous waste management services and be mid-single digit accretive to US Ecology’s earnings per share next year before synergies. They expect to close the deal in the fourth quarter if it clears Hart-Scott-Rodino and stockholders.
US Ecology stockholders will receive one share of a new holding company for each of their shares while NRC shareholders will receive 0.196 of a share. The deal values NRC stock at $12 per share, a 36% premium over its closing price the last trading day before the deal was announced.
US Ecology stockholders will end up with 70% of the combined company and NRC shareholders will hold 30%. US Ecology plans to refinance NRC’s senior credit facilities through a new Term Loan B.
Shearman, Gibson Dunn aid on Oil Search’s $450M Alaskan investment
Shearman & Sterling said it advised a unit of Papua New Guinea’s Oil Search on its exercise of a $450 million option that will double its investment in the Nanushuk field in Alaska’s North Slope.
The option acquisition will result in Oil Search owning a 51% operated interest in the Pikka Unit and adjacent exploration acreage and a 75% operated interest in the Horseshoe Block and Hue Shale.
The Shearman team was led by partner R. Coleson Bruce in Austin, counsel Angie Bible in Houston and associates John Craven and Ryan Staine, both in Houston. Assisting were partners Hugh Tucker, Todd Lowther and associates Douglas Goldstein and Brianna Lozito in Houston.
Oil Search also entered into an agreement with Repsol E&P USA Inc. to align ownership interests across their shared Alaska assets, resulting in Oil Search holding a 51% interest and Repsol a 49% interest across all co-owned leases. Repsol will pay Oil Search $64.3 million and Oil Search will keep operatorship of all lease areas.
The companies also reached operating and project agreements to drive better long-term commercial alignment in the contract area, which is estimated to have more than 500 million gross barrels of recoverable oil reserves.
Gibson, Dunn & Crutcher said it advised Repsol, including Houston partner Justin T. Stolte, associates Ashley Nguyen, Monika Kluziak, James Robertson and Jordan Silverman and tax partner James Chenoweth.
Repsol’s general counsel is Daniel Resendez, who previously was at Stolte’s previous law firm, Baker Botts.
Oil Search had acquired a $400 million operated position in the field last year from Armstrong Energy and GMT Exploration Co., marking its first foray into the U.S.
Attorneys at Denver firm Lewis Bess Williams & Weese counseled Armstrong and GMT.
First production is expected to begin in 2022 with the potential to produce 120,000 barrels of oil per day.
Latham, Kirkland work on Archrock’s $410M Elite purchase
Latham & Watkins said it counseled Houston-based Archrock Inc. on its acquisition of JDH Capital-backed Elite Compression for $410 million in cash and shares.
The parties expect the deal to close in the third quarter if it clears regulators.
Partners Ryan Maierson and Nick Dhesi led the Houston-based deal team with associates Dan Harrist and Drew Tengler-West. Partner Tim Fenn with associate Jim Cole advised on tax and partner Joel Mack weighed in on environmental matters.
Kirkland & Ellis counseled Elite, including corporate partners Jhett Nelson, Shubi Arora and Chad Smith and associates Bryan Jones, Will Eiland, Zack Montgomery, Jimmy Frost, Gordon Cranner and Will Mabry; capital markets partner Julian Seiguer and associates Mark Kam and Brooke Milbauer; and tax partner Mark Dundon and associate Joe Tobias.
Citi is Archrock’s financial advisor and Intrepid Partners assisted JDH Capital and Elite.
Led by Jerry Blackmon, Elite Compression has 430,000 of predominately large-horsepower compression assets that generate $55 million of EBITDA annually.
As part of the transaction, Harvest Midstream Co. will acquire 80,000 active and idle compression horsepower from Archrock for $30 million in cash.
Archrock’s board also appointed Jeffery D. Hildebrand, executive chairman and founder of Hilcorp Energy Co., which is affiliated with JDH and Harvest, to Archrock’s board.
Archrock CEO and president Brad Childers said the transaction adds basin density in its core areas, with more than 70% of the units deployed in the Eagle Ford and South Texas region, and will help it reduce its leverage and boost its dividend.
W&T Offshore pays $200M for Exxon Mobil Gulf of Mexico assets
W&T Offshore Inc. said June 27 it agreed to acquire ExxonMobil Corp.’s interests in and operatorship of oil and gas producing properties in the eastern region of the Gulf of Mexico off the coast of Alabama and related onshore processing facilities for $200 million.
The transaction is expected to close by Aug. 30.
W&T’s outside counsel couldn’t be determined by press time.
W&T’s general counsel is Shahid Ghauri, who previously was a partner at Jones Walker and assistant general counsel of BHP Billiton Petroleum.
Exxon Mobil’s general counsel is Randall Ebner, who has worked in the company’s legal department since 1980.
Chairman and CEO Tracy W. Krohn said the producing properties meet the criteria the company has outlined to drive increased shareholder value from acquisitions.
Kirkland counsels Wing on $145M mineral interest sale to Alliance
Kirkland & Ellis said it advised Natural Gas Partners-backed Wing Resources and Wing Resources II on the sale of their oil and gas mineral interests representing 9,000 net royalty acres in the Midland Basin to Tulsa-based Alliance Resource Partners for $145 million.
Dallas partner Thomas Laughlin and associate Alex Poor led the deal team assisted by corporate associates R.J. Malenfant and Steven Taylor; tax partner David Wheat; and environmental transactions partner Jonathan Kidwell.
Oklahoma firm Gable Gotwals counseled publicly traded Alliance.
The parties expect to close the transaction in early August. Alliance plans to fund the purchase with cash on hand and borrowings under its credit facility.
The interests have exposure to more than 400,000 gross acres, which will boost Alliance’s position in the Permian Basin. Alliance is led by chairman, CEO and president Joseph W. Craft III.
V&E aids Riverstone on $103M investment in Aleph Midstream
Vinson & Elkins said it advised Riverstone Energy Ltd. and other investors on an agreement to invest $103 million in Aleph Midstream, an independent Argentine oil and gas gathering and processing-focused midstream company.
Southern Cross has committed $54 million while Vista Oil & Gas will kick in $45 million worth of assets and Aleph and Vista management teams will contribute $3 million, leading to a total commitment of $205 million that will deployed over the next 24 months.
The V&E team included partner Jason McIntosh, senior associate Allyson Seger and associate Jake Wight on tax; partner Shay Kuperman and senior associate Luke Edney on energy transactions/projects; and counsel Damien Lyster and associate RJ Colwell on energy regulatory.
Mayer Brown said June 29 it co-counseled Vista in connection with the operational and midstream services agreement. The team included partners Pablo Ferrante (Houston/Mexico City) and Thomas Moore (Houston), counsel Rebecca Seidl (Houston) and associate Federica Castro (Houston).
Gibson, Dunn & Crutcher represented Evercore as financial advisor to Vista. That team includes Houston partner Hillary Holmes and associates Harrison Tucker and Jordan Rex. Houston partner James Chenoweth and Paul Collins also assisted.
The transaction is expected to close in July. Riverstone Energy, which is managed by Riverstone Holdings, said the addition is in line with its recently modified investment approach.
Aleph Midstream will become first midstream player focused on providing gathering, processing and evaluation services for oil and gas production on the Vaca Muerta shale play.
Starting in January 2020, Aleph plans to begin providing certain midstream services to support Vista’s Bajada del Palo Oeste shale development in Vaca Muerta and its existing conventional and future unconventional production in the Neuquina Basin under a dollar-denominated long-term contract.
Aleph is currently negotiating credit facilities, which it expects to close in the third quarter.
Riverstone and its affiliates have committed $6.9 billion to 23 midstream investments since inception, including recent investments in onshore unconventional-focused gathering and processing assets via its Meritage and Lucid platforms.
Southern Cross is one of the largest and longest-standing Latin America-focused private equity firms. It’s currently investing from its fifth fund, which has $700 million in commitments.
Jones Day assists TriGate on $40M Mayfair sale to Brookfield
Jones Day said Dallas partner Andrew Van Noord led the deal team advising TriGate Capital on the sale of the Mayfair Hotel & Spa in Coconut Grove, Florida, to Canada’s Brookfield Asset Management for $40 million.
The 179-key hotel, which was also owned by Copperline Partners, was last sold in 2014 for $27.6 million. Miami architect Ken Treister designed the hotel, which was completed in 1985.
Crescent Hotels & Resorts is now managing the property.
Christian Charre and Paul Weimer of CBRE were the listing brokers.
DLA Piper advise on Remedy’s $10M funding round
Austin healthcare services provider Remedy raised $10 million in Series A funding, with Santé Ventures leading the round.
DLA Piper partner Samer Zabaneh in Austin counseled Santé on the transaction while an Egan Nelson partner in New York represented Remedy.
Remedy said the funding will be used to support its growth, expand its technology platform and enhance its business offering for self-funded employers.
Remedy provides a telemedicine portal, “modern” house call doctor visits and walk-in clinics.
Santé managing directors Joe Cunningham and Doug French will join Remedy’s board.
Remedy is led by by founder and CEO Jeremy Gabrysch.
According to Truven research, as many as 71% of emergency department patients are seen for conditions that could be handled at non-emergency facilities.
Remedy aims to change access and awareness for Texas residents, many of whom go to the ER because it’s close to their house or they’re unable to see primary care physicians outside of normal office hours.
Founded in 2006, Austin-based Santé Ventures is a specialized healthcare and life sciences investment firm with more than $500 million in capital under management.
Morgan Lewis aids Alpine on eye surgeon practice investment
Morgan Lewis said partner Sameer Mohan in Houston advised Alpine Investors on an investment in Northeast Ohio Eye Surgeons Inc., including its unit, Ohio Eye Care Consultants. Terms weren’t disclosed.
Opposing counsel wasn’t in Texas, Morgan Lewis said.
The two companies will form a new ophthalmology platform for Alpine and will continue to operate independently under their respective brands.
Alpine Investors VP Haley Beck said in a statement that the ophthalmology sector has an estimated market size of $36 billion in the U.S. and is growing 4% to 5% per year.
Alpine CEO-in-residence Joseph Giles in Chicago will lead Alpine’s ophthalmology platform.
Baker Botts, Locke Lord counsel on Texas Monthly Sale
As The Texas Lawbook previously reported, Locke Lord and Baker Botts advised on Genesis Park’s sale of award-winning magazine Texas Monthly to billionaire Houston heiress Randa Duncan Williams for an undisclosed sum.
Locke Lord represented Williams led by partner Joe Perillo with assistance from associates Rachel Fitzgerald and Tom Johnson.
Baker Botts partner David Peterman assisted Genesis, a private equity firm led by Paul Hobby. Peterman previously advised Genesis Park on its $25 million purchase of the magazine in 2016 when he was at Norton Rose Fulbright.
Goldman Sachs was Genesis’ financial advisor.
Williams, whose father Dan Duncan founded pipeline giant Enterprise Products Partners, will be Texas Monthly’s fourth owner since Mike Levy founded it in 1973. Levy sold the magazine in 1998 to Indiana-based Emmis Communications, which then shed it to Hobby in 2016.
Locke Lord represents Acteon on TerraSond acquisition
Locke Lord said it represented Acteon Group Ltd. on its acquisition of geospatial and geophysical services provider TerraSond for an undisclosed sum.
The team was led by partner Joe Perillo with assistance from associate Rachel Fitzgerald, partners Ed Razim and Buddy Sanders and associates Matt McKenna and Emily Self, all of Houston.
The acquisition closed June 19.
TerraSond, which is led by president Tom Newman, works for clients in oil and gas, renewables, engineering and mining, telecom and marine construction sectors. It plans and executes remote and challenging surveys, from inland works to deep ocean seabed exploration and mapping projects.
Acteon CEO Richard Higham said TerraSond’s early-cycle capability alongside the recently announced acquisition of offshore marine geophysical survey provider Benthic enhances Acteon’s survey business and the development of a comprehensive global offering.
Baker Hughes, C3.ai announce JV to deliver AI to the oil industry
Baker Hughes, a GE company, announced June 24 that it formed a joint venture with C3.ai to provide artificial intelligence solutions to the oil and gas industry.
The JV involves Baker Hughes buying a minority stake in Redwood City, Calif.-based C3.ai which is led by Thomas M. Siebel. Terms weren’t disclosed.
Baker Hughes general counsel Will Marsh said digital products company counsel Tim Donoughue in Houston and associate general counsel – M&A John Keffer in London did the work in-house and Davis Polk provided outside counsel.
Cooley represented C3.ai along with general counsel Kira Kimhi.
Baker Hughes said AI in the oil and gas segment helps improve performance by ingesting massive quantities of data, becoming intelligent about specific operational environments and predicting problems before they occur so that operators can improve planning, staffing, sourcing and safety.
Baker Hughes CEO Lorenzo Simonelli said in a statement that digital technology is critical to achieving increased levels of productivity, efficiency and safety for the company’s employees and for its customers.
The companies said they will immediately market and deploy C3.ai’s AI technology into oil and gas businesses, including at Baker Hughes. Royal Dutch Shell uses the C3.ai platform for predictive maintenance.
Sidley counsels BP on asset sale to Lime Rock
Sidley Austin said it represented BP America Production Co. on the sale of its oil and natural gas properties in Cleveland and McClain Counties, Oklahoma, to Lime Rock Resources for an undisclosed sum.
Jerry Devault, who used to be with Foley Gardere, counseled Lime Rock.
Houston-based Lime Rock said the properties are 50 miles east of Lime Rock Resources’ Norge unit operations, which it acquired in 2014.
The transaction, which represents Lime Rock’s eighth acquisition in Oklahoma, is expected to close in the third quarter.
Lime Rock co-CEO Eric Mullins said as oil and gas companies continue to shift their capital and focus on fewer areas, they are seeking to divest an increasing amount of their non-core properties. “We are excited to be a buyer from private companies, large independents, and majors,” he said.
Co-CEO Charlie Adcock said the company will apply the same long-reach horizontal drilling and modern completion techniques it’s using in the Permian, Williston and the Norge field to the properties.
Founded in 1998, Lime Rock Management has raised $8.9 billion in private equity funds for investment in the energy industry through Lime Rock Resources and Lime Rock Partners.
NRF counsels on HBC/Barcas’ acquisition of Getka
HBC Investments and Barcas Investments have acquired Tulsa crude oil logistics provider Getka Energy from EnCap Flatrock Midstream for undisclosed terms.
Houston-based Barcas wouldn’t disclose its legal counsel.
MapleMark Bank of Dallas provided financing for the transaction.
Getka CEO Dariusz Cichocki, COO Matt Turner and chief commercial officer Clete Straub are staying on.
Silver Lake-backed WP Engine buys rival Flywheel
Silver Lake-backed WP Engine in Austin said it bought smaller rival Flywheel. Terms weren’t disclosed.
WP Engine claims it’s the largest acquisition to date in the WordPress industry and that the two will power 120,000 brands and agencies in 150 countries served by 900 employees across seven offices.
WP Engine general counsel Chad Castello didn’t respond to repeated requests regarding outside legal advice on the deal.
WP Engine raised $250 million from Silver Lake last year while Omaha-based Flywheel brought in $14 million from Five Elms Capital and others.
WP Engine CEO and chairperson Heather Brunner told TechCrunch that the company had to tap its existing investors to help fund the deal. She declined to talk about WP Engine’s valuation but said the company is generating annual recurring revenue of $132 million and Flywheel is producing $18 million.
With a current growth rate of 50%, the two are on track to make $200 million in annual recurring revenue by 2020 and will likely pass the $1 billion mark for valuation en route to a public listing, TechCrunch said.
WP Engine focuses mostly on mid-market and larger businesses while Flywheel serves smaller businesses.
Flywheel was founded in 2012 by Dusty Davidson, Tony Noecker and Rick Knudtson, all of whom came from web development backgrounds at agencies. It serves 28,000 customers globally and employs 200.
WP Engine said WordPress is the leading content management system today powering 34% of the web and also the fastest growing in the world.
Sidley, V&E, Latham work on Enterprise’s $2.5B senior notes offering
Houston pipeline and terminal operator Enterprise Products Partners has put $2.5 billlion of senior notes on the market to fund its expansion plans.
Vinson & Elkins’ Doug McWilliams, Dan Spelkin and Austin March are counseling the underwriters, who include JP Morgan, BofA Merrill Lynch, Morgan Stanley and TD Securities. Wells Fargo is the trustee.
Enterprise deputy counsel Christopher S. Wade appears to be leading the issues, according to the filings.
The offering includes senior notes worth $1.25 billion that pay 3.125% interest and are due in July 2029 and another set of senior notes worth $1.25 billion that pay 4.2% interest and are due on January 2050.
Enterprise plans to use the expected $2.47 billion in proceeds to pay down debt, including $800 of senior notes due in October. The rest will be used for general purposes and growth projects.
Baker Botts, V&E advising on Sunnova’s planned $1B IPO
As The Lawbook reported last week, Baker Botts and Vinson & Elkins are advising on Sunnova Energy International’s initial public offering, providing a glimmer of hope in an otherwise barren environment for energy issues.
The filing didn’t list the number of shares to be sold or their price range, listing only a $100 million placeholder. But the issue is expected to give the Houston solar panel installer an enterprise value of $1 billion, according to Reuters, which reported June 11 that an offering was in the works.
Partners Joshua Davidson and Travis J. Wofford are leading the Baker Botts team advising Sunnova while Vinson & Elkins partners David P. Oelman and E. Ramey Layne are representing the underwriters, according to the filing.
The underwriters include BofA Merrill Lynch, J.P. Morgan, Goldman Sachs & Co., Credit Suisse, KeyBanc Capital Markets, Baird and Roth Capital Partners.
Walter “Drew” Baker has been Sunnova’s general counsel since the beginning of last year. He previously was general counsel at Atwood Oceanics Inc., which was acquired by Ensco in 2017 for $839 million.
Founded by CEO John Berger in a downtown Houston apartment in 2012, the company now claims to have more than 63,000 customers and 75 dealers in 20 states. It lost $74 million on $104 million in sales last year, according to the filing.
Sunnova’s other backers include Triangle Peak Partners, which is led by Michael Morgan, the co-founder of Kinder Morgan; and Seis Partners, which is led by former Kinder Morgan president C. Park Shaper.
V&E advises MoneyGram on $925M in loans as part of refinancing
Vinson & Elkins said June 26 it advised Dallas-based money transfer and payment services provider MoneyGram International in a successful refinancing that included $925 million in loan facilities from traditional banks and alternative capital sources.
Partners Alan Bogdanow and Chris Rowley led the corporate team with associate Alex Robertson, senior associate Doug Smith and associates Alex Turner and Breanna Kelly. Partner Jim Meyer and associate Neil Clausen provided tax advice.
V&E also advised MoneyGram on its strategic agreement with blockchain payment provider Ripple recently in which Ripple is buying shares and warrants in Moneygram for $4.10 per share, or $30 million (Bogdanow, Rowley and Dewar, among others).
MoneyGram’s general counsel is F. Aaron Henry, who has been at the company for eight years after previously working in the legal department at Western Union for six years.
The company entered into a new first lien credit agreement and a new second lien credit agreement, each with Bank of America as administrative agent.
The agreements provide for a first lien secured three-year revolving credit facility of $35 million, a first lien secured four-year term loan facility of $645 million and a second lien secured five-year term loan facility of $245 million.
The interest rate for the revolver will be LIBOR plus either 6% or 5.75% per year depending on the company’s first lien leverage ratio. All term loans under the second lien term loan facility bear interest at an annual 13% rate.
The second lien term loan lenders also received warrants for equity interests in the company that amount to 5.4 million shares, or 8% of its stock.
MoneyGram said the closing of the credit facilities allowed it to extend and/or repay in full all outstanding indebtedness under its existing credit facility.
Latham, V&E aid on Antero’s $650M notes offering
Latham & Watkins said it advised underwriters JP Morgan and Wells Fargo on a $650 million senior notes offering by Antero Midstream.
Vinson & Elkins represented Antero with a corporate team led by partners Doug McWilliams and Scott Rubinsky, counsel Dan Spelkin, senior associate Austin March and associates Billy Vranish, Jonathan Villa and John Daywalt.
The offering involved 5.75% senior unsecured notes due 2028. Antero expects that the $643 million in proceeds will be used to repay part of the outstanding borrowings under its credit facility.
HuntonAK aids Roan committee on $100M from lenders
Hunton Andrews Kurth said June 28 it advised the conflicts committee of Roan Resources Inc.’s board on a $100 million term loan facility from funds affiliated with big shareholders who are represented on the board.
The deal team included lead corporate partner Mike O’Leary, finance partner Jeff Butler and corporate associate Michael Wright.
Borrowings under the term loan facility are expected to bear interest at a rate equal to three-month LIBOR plus 7.50%.
In exchange for the commitments, Oklahoma City-based Roan agreed to issue 1% of the outstanding shares of Class A common stock to the lending parties.
Separately, Roan said it completed its June borrowing base redetermination for its revolving credit facility with its bank group unanimously reaffirming the current base of $750 million.
The company said it now has around $150 million of available liquidity, which is more than ample to fund its ongoing capital program.
Roan executive chairman Joseph A. Mills said the company aims to expand production by 20% to 25% this year and generate free cash flow by the fourth quarter. He added that Roan continues to actively evaluate strategic alternatives with Jefferies and Citigroup.
It didn’t reveal its outside financial advisors or lawyers, but Vinson & Elkins partner Alan Beck has counseled it in the past.
In May the company said it had received multiple unsolicited indications of interest to purchase the company or consolidate operations.
HuntonAK involved in three capital markets deals worth $1.7B
Hunton Andrews Kurth announced its involvement in three capital markets transactions.
The firm said it was underwriters’ counsel on Figure VFN Trust I’s $1 billion securitization in May.
The team was mostly outside of Texas but included associate Rachael Craven and partners Jarrett Hale and Abby Lyle, all of Dallas. Dechert represented other parties.
HuntonAK also counseled underwriter Sandler O’Neill on Central Bancshares Inc.’s $17.5 million private offering of subordinated notes last month.
Dallas counsel Carleton Goss led the team, which included partners Brian R. Marek and Peter Weinstock and associate Zachary Silvers.
Finally, the firm advised the initial purchasers of a $700 million private debt offering of senior notes at the end of last month by an undisclosed company.
The underwriters included MUFG Securities Americas Inc., KeyBanc Capital Markets, Barclays, Citigroup, Banc of America Securities, JP Morgan, BNP Paribas, Credit Agricole, TD Securities and Goldman Sachs.
The HuntonAK team was mostly outside of Texas but included Houston partners Phil Haines and Henry Havre.
Update/Other Deal News
Dallas real estate development and management company Howard Hughes Corp. confirmed a CNBC report last week that it’s hired Centerview Partners to explore strategic alternatives that include a possible sale of the company. Centerview also is looking at joint ventures and spinoffs as well as a recapitalization.
The company has a market capitalization of around $5.5 billion. Potential buyers include Brookfield Property Partners and the Blackstone Group, according to reports.
The company’s chairman is activist investor Bill Ackman and its CEO is David Weinreb. The company’s general counsel is Peter Riley, who joined the company in 2011 after practicing at K&L Gates, Kelly Hart and Simpson Thacher & Bartlett.
The company, a spinoff from General Growth Properties, owns master-planned developments in The Woodlands and the Seaport District in New York City as well as properties in Hawaii and elsewhere.
Texas has joined other states in probing the $26 million merger of Sprint with T-Mobile, according to filings with the Federal Communications Commission. Bret Fulkerson, assistant attorney general in the antitrust division in Austin, is leading the charge.
Two more oil and gas companies have filed for bankruptcy: Legacy Reserves and Weatherford International.
Legacy Reserves said June 18 it filed for Chapter 11 in U.S. Bankruptcy Court for the southern district of Texas with a restructuring agreement in place with most of its lenders.
Perella Weinberg Partners and affiliate Tudor Pickering Holt & Co. are financial advisors to the company, Sidley Austin is its legal advisor and Alvarez & Marsal is its restructuring advisor.
PJT Partners is financial advisor for the second lien lenders and Latham & Watkins is their legal advisor. Houlihan Lokey is the financial advisor for the ad hoc group of senior noteholders and Davis Polk & Wardwell is the group’s legal advisor.
RPA Advisors is financial advisor to Wells Fargo Bank as administrative agent for its lenders under its revolving credit facility and Orrick Herrington & Sutcliffe is its legal advisor.
Weatherford said June 30 it came to an agreement with creditors and on July 1 initiated its previously-announced financial restructuring. The company said the “pre-packaged” Chapter 11 process will reduce its long-term debt by more than $5.8 billion and the restructuring contemplates $1.75 billion in new financing and up to $1.25 billion in additional post-emergence financing.
Lazard is financial advisor for the company while Latham & Watkins is its legal counsel and Alvarez & Marsal is its restructuring advisor. Evercore is financial advisor for the senior noteholders and Akin Gump Strauss Hauer & Feld is legal counsel.
Latham team members from Houston included corporate partners Ryan Maierson and John Greer and associates Ryan Lynch, Om Pandya, Drew Tengler-West and Ashlynn Royal; finance partner Craig Kornreich, counsel Natalie McFarland and associates Allison Childs, Brian Flynn, Annie Kwan, Hillarie James, Matthew Snodgrass and Kristin Oglesby; and tax associate Jared Grimley.
Hunton Andrews Kurth also counseled Weatherford with partner Tad Davidson leading the team. Assisting him are associate Ashley Harper, partner David Zdunkewicz and associates Joseph Rovira, Edward Clarkson, Joshua Karam and Amanda Thienpont, all of Houston.
In another sign of the moribund market for energy IPO’s, San Antonio-based Howard Midstream Partners said June 27 it was withdrawing plans for a $100 million initial public offering. It didn’t give a reason. Alberta Investment Management Corp. was one of the selling unitholders. The partnership initially filed in 2017 with Latham & Watkins partner John Greer in Houston advising it.
Howard Midstream’s general counsel is Brett Braden, who left Latham in 2017 to take on the role. Before Latham, he was at V&E.
Hunton Andrews Kurth offered up the names of its lawyers who advised Casey Bancorp Inc. on its sale to Tupelo, Mississippi-based BancorpSouth for around $50 million. The parties announced the deal in November and it closed April 1. The team included partners Peter Weinstock and Beth Whitaker and associate Nate Jones, all of Dallas. Alston & Bird was BancorpSouth’s legal advisor. Commerce Street Capital was Casey’s financial advisor. Casey unit Grand Bank of Texas operates full-service banking offices in Dallas, Grand Prairie, Horseshoe Bay and Marble Falls.
RUMOR MILL: Pipeline company Blue Racer Midstream is considering an initial public offering that could be valued at $2.5 billion, Bloomberg reported June 24. The Dallas-based company is a 50/50 joint venture between private equity firm First Reserve and Caiman Energy II, which has funding from Williams Cos., Oaktree Capital Management LP and EnCap Flatrock Midstream.
Bloomberg also reported last week that Occidental Petroleum Corp. is seeking a buyer to take majority control of Western Midstream Partners, which it will pick up as part of its buyout of Anadarko Petroleum Corp. Oneok Inc., Enterprise Products Partners and Energy Transfer would be likely buyers. The deal could bring in around $7.4 billion.
Meanwhile, Reuters is reporting that Magellan Midstream is exploring the sale of a 35% stake in its Longhorn crude oil pipeline in Texas that could bring in as much as $2 billion. Such a deal would be the latest in a string of U.S. pipeline companies seeking to sell off minority stakes in assets to unlock cash to invest in new projects with higher returns, the news agency said.
Finally, billionaire Paul Singer’s Elliott Management is in advanced talks to purchase Denver oil and gas explorer QEP Resources that it previously offered to buy in January, Bloomberg reported last week. Elliott already owns 5% of QEP, which has a market cap of $1.7 billion. Interested parties have included Blackstone, Whiting Petroleum Corp. and Callon Petroleum.
Irving-based Del Frisco’s Restaurant Group announced June 24 that it agreed to be sold to consumer-focused private equity firm L Catterton for $650 million in cash.
The deal worked out to $8 per share, a 22% premium over the company’s share price before it announced it was reviewing strategic alternatives in December and 21% over the last 30 trading days.
Alas, no outside Texas lawyers worked on the deal, with Kirkland & Ellis advising Del Frisco’s with attorneys out of San Francisco and New York and Gibson Dunn counseling L Catterton out of New York.
Activist investor Engaged Capital, with almost a 10% stake, voted in favor of the deal, which is expected to close in the fourth quarter if it clears Del Frisco shareholders.
Joe Reece is chairman of the company’s strategic alternatives committee, Ian R. Carter is board chairman and Norman Abdallah is CEO. Its general counsel and legal staff couldn’t be determined by press time.
Andrew Taub led the deal from L Catteton, which has invested in brands such as Outback Steakhouse, Fleming’s Prime Steakhouse, Carrabba’s Italian Grill and Bonefish Grill, Cheddar’s Scratch Kitchen, P.F. Chang’s and Uncle Julio’s Mexican.