Live From the Desk

A Hostile Resolution

As a quick follow up to our Into Hostile Territory email (sent January 4th), about Canadian hostile transactions, we are pleased to note the resolution of the final two situations: CANMARC and Ruggedcom. In mid-January, CANMARC received a sweetened offer from Cominar: an 8% increase to $16.50 per share. Yesterday morning, it was announced that …

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Into Hostile Territory

We have seen five hostile transactions in Canada since July. While hostile bids for US-based companies have not been a mainstay of our event-driven strategies, hostile Canadian bids have historically offered particularly attractive risk-adjusted returns. The primary reason for the difference between the two jurisdictions is the emergence of the “just say no” defense in …

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Ready, Set…

“You can observe a lot by watching.” Yogi Berra Market volatility this year has masked the fact that year-to-date returns have left many feeling stuck in the doldrums. However, there have been some encouraging announcements recently which make us optimistic for positive events down the road. Specifically, we’ve noticed that some private companies are interested …

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Live From the Desk 12

M&A Update: Capital Power Income LP Closes We thought that given the unique nature of this deal and the surprise bump we received upon closure we would share with you this particular situation. The acquisition of Capital Power Income LP (CPA-u) by Atlantic Power (ATP) recently closed and it’s a good example of how technical …

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Live From the Desk 11

Bond Spreads Ace Cash Express released their earnings at the end of September. We own the 11% 2/1/2019 Senior Secured bond in both the Enhanced Income Fund and the Vertex Fund. Traditionally, the cheque cashing industry received funding from private investors at a rate of 20% annualized. By issuing bonds, the companies lowered their cost …

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