June 23, 2024 | Read Online

June 23rd - The Week Ahead

Together With

The week ahead of us 🔍

Here's a look at earnings coming up this week:

Tuesday: FedEx, Alimentation Couche Tard, Carnival Corp, TD Synnex, Jefferies Financial, Worthington Industries, Progress, Barnes & Noble Education, LiveOne, Selina, Mexco Energy, Cyanotech
Wednesday: Micron, Paychex, General Mills, Levi Strauss Am AeroVironment, National Beverage, H B Fuller, Concentrix, Unifirst, MillerKnoll, Worthington Steel, BlackBerry, Novagold, Avid Bioservices, Daktronics, Franklin Covey, Transphorm Tech, Cybin, Eaco, Kewaunee, Culp, Asia Pacific Wire & Cable Corp, Corus Entertainment, Terrace Energy
Thursday: Nike, McCormick & Co, Walgreens Boots, Acuity Brands, Simply Good Foods, Apogee, Lindsay, ETV Limited Duration, Accolade, Pinstripes Holdings, Bassett, American Outdoor Brands, Jerash, Aesthetic Medical Intl, American Overseas

A Message from our Sponsor

Built by private equity for private equity, Mosaic is revolutionizing the game for PE deal teams - go from a CIM to an LBO model in less than 5 minutes. Let Mosaic handle mechanical repetitive calculations (and with 100% accuracy) and free up your time to thoughtfully select key assumptions and drivers.

Plus you can add all the complexity you'll need. Want to explore an IPO exit scenario? Just activate the IPO exit module and see the results unfold in real-time. Dividend recaps. M&A. Cost savings. Extended investment hold periods. Mosaic can do it all.

The best part? All Mosaic models can be exported into fully functional Excel models with working formulas so you can audit everything each time.

It's no surprise that leading deal teams from CVC to Warburg Pincus are already using Mosaic. Request a demo to level up your modeling workflow.

Request A Demo For Free

Headlines 🔍

Chipotle is selling 'Chipotle Boy' bowls aimed at vest-wearing finance bros: Chipotle launches a special meal to recognize the chain's most reliable customer cohort. Now available for a limited time, the Chipotle Boy Bowl features two scoops of chicken, white rice, black beans, mild salsa, corn, sour cream, cheese, guacamole, and lettuce.
NVIDIA share price falls 7% in 2 sessions; is the AI chip maker's run as the most valuable company over? Experts weigh in: Shares of the semiconductor giant witnessed a sudden decline of 6.7% on Nasdaq in the last two sessions, which erased its market capitalization by over $220B and dethroned it from the world's top stock. AI will be integral to all key sectors in the coming years. However, some experts also warn that the exuberance about AI stocks seems to have created a bubble. The stock's rapid rise has made it vulnerable to sudden profit bookings.
Boyd Gaming approaches ESPN Bet operator Penn Entertainment about acquisition: U.S. casino operator Boyd Gaming has approached Penn about potential acquisition. Penn has a market value of roughly $9B, including debt. Shares jumped by nearly 10% on Thursday following the news of a potential sale. This would mark the biggest merger among U.S. gambling companies since Eldorado Resorts purchased Caesars Entertainment for $17.3B in 2020.
The WSJ did a deep dive on Judge David Jones, the notable Texas bankruptcy judge that ruled on several key restructuring cases, but had to step down from his seat after it came out that he had a personal relationship with a lawyer who often advised on the cases he ruled on. The WSJ deep dive showed how this revelation almost never saw the light of day, and how some Kirkland & Ellis lawyers may have known about the scandal and ignored it anyways
Rental car firm Hertz plans to raise $750M through notes: Hertz said on Thursday it intends to raise $750M through a two-part secured notes offering, as the company looks to shore up its balance sheet after a failed bet on electric vehicles. The proceeds are expected to be used to pay down a portion of its $2B revolving credit facility and improve its liquidity.
Palantir stock hiccups as downgrade counters AI-powered returns: Palantir stock fell more than 5% on Friday after analyst Brian White at Monness, Crespi, Hardt & Co downgraded the stock to sell. White cited a meteoric rise in the stock as a "gluttonous" valuation. Palantir is up 300% since the start of 2023. While government revenue grew 16% year over year, the major driver has been U.S. corporate revenue, which increased 40% over the same period, with a 69% increase in U.S. customers. Palantir's European business has struggled as regulatory concerns around privacy and transparency have stunted growth.
$100,000 watch stolen during Manhattan armed robbery: the robbery happened outside of Carbone New York in Greenwich Village around 8:52 pm. Two suspects allegedly displayed firearms and stole jewelry. A $100,000 Patek watch was taken as the suspects fled on a moped.
Social-media influencers aren't getting rich - they're barely getting by: Last year, 48% of creator-earners made $15,000 or less. Only 13% made more than $100,000.
Existing home sales decline in May as home prices reach record high: The US median home price reached $419,300, helping explain the slowdown in home sales as interest rates remain elevated. Sales of previously owned homes declined for the third straight month in May as prices hit an all-time high. Year-over-year sales were down 2.8%.

Robert Smith @BondHack

3i's buyout of Dutch retailer Action lays a fair claim to being the best LBO deal of all time.

After buying a majority stake in 2011 for €130m, 3i has drawn billions in dividends and booked a 100 bagger in valuation terms

latest from @EuanHealy here 👇

ft.com/content/c3c3bf…
3i set for €1.1bn windfall as debt-backed payouts soar
'Dividend recapitalisations' hit record rate as private equity owners take advantage of easy credit conditions

Jun 20, 2024

63 Likes 11 Retweets 3 Replies

Delivery drivers got higher wages. Now they're getting fewer order. Food-delivery apps have responded to cities' new wage-increase requirements for gig workers by increasing fees. Uber Eats orders in Seattle fell 45% last quarter from the same period a year earlier after the company imposed a $4.99 fee on each order to cover the city's new pay requirements.
US sues Adobe for 'deceiving' subscriptions that are too hard to cancel: The Justice Department alleges that Adobe hid early cancellation fees and trapped consumers in pricey subscriptions. In the complaint filed on Monday, the Department of Justice claims Adobe "has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms."
Apple is shutting down Apple Pay Later just months after launch: The service, which lets you take out "pay later" loans that can be paid in four payments over six weeks, only launched fully in the US in October 2023. In its place, Apple says that users will be able to apply for "installment loans" from credit cards, debit cards, and lenders when checking out with Apple Pay later this year.
Activist Starboard Value has stake in Autodesk: Starboard Value has roughly $500M stake in Autodesk and is pushing for changes at the design-software maker. Starboard believes the company should improve its margins and make changes to its board.
Shares of AMC Networks plunge 35% as company plans debt sale to raise cash: the company said it plans to put up for sale $125M of convertible senior notes due 2029 in a private offering. The company controlled by the Dolan family and run by Kristin Dolan expects to use the net proceeds "for general corporate purposes, which may include the repayment of indebtedness."

M&A Transactions💭

Internacional de Ceramica, a seller of products of floors, tiles, installation materials, was acquired for $491.14M by Kohler.

eStructure Data Centers, operator of the cloud and carrier-neutral data centers, was acquired for $1.31B by Liuna Pension Fund of Central and Eastern Canada, Partners Group, Pantheon, Fengate Asset Management. Scotiabank advised on the sale.

Bromma Blocks, operator of a retail venue, has entered into a definitive agreement to be acquired for $227.85M by LSTH Svenska Handelsfastigheter. CBRE advised on the sale.

Transphorm, a semiconductor company, was acquired for $339.0M by Renesas Electronics (TKS: 6723). Bank of America advised on the sale.

Terna Energy (ATH: TENERGY), a Greece base company mainly engaged in the energy and construction sector, has entered into a definitive agreement to be acquired for $2.6B by Masdar Capital. Morgan Stanley advised on the sale.

Philly Shipyard (OSL: PHLY), operates as a commercial shipyard, has reached a definitive agreement to be acquired for $100.0M by Hanwha Systems (KRX: 272210) and Hanwha Ocean (KRX: 042660).

CP Kelco, manufacturer of specialty hydrocolloids and gums, has reached a definitive agreement to be acquired for $1.9B by Tate & Lyle (LON: TATE).

The Zidian Group, manufacturer of food products. has reached a definitive agreement to be acquired for $235.0M by Lassonde Industries (TSE: LAS.A).

Sharecare (NAS: SHCR), a digital healthcare platform, has entered a definitive agreement to be acquired for $518.23M by Altaris Capital Partners. Houlihan Lokey and MTS Health Partners advised on the sale.

9 Story Media Group, producer, creator, and distributor of animated and live-action content, was acquired for $186.0M by Scholastic (NAS: SCHL). Barclays advised on the sale.

Ojjo, developer of solar foundation system, was acquired for $119M by Nextracker (NAS: NXT).

Private Placement Transactions💭

Semperis, developer of cyber resilience and threat mitigation, has raised $125.0M of venture funding from J.P. Morgan and Hercules Capital BDC.

Zepto, operator of an online grocery delivery platform, has raised $665.0M of venture funding led by Glade Brook Capital Partners, Nexus Venture Partners, and StepStone Group at a pre-money valuation of $2.94B.

BillionToOne, developer of a molecular counter platform, raised $130.0M of Series D venture funding led by Premji Invest at a pre-money valuation of $870.0M.

Noteworthy Chart 🧭