Whether it was the summer – or the swoon of equity markets
in August – this quarter marked a challenging time for deal
making. Only one public deal (and two private deals) worth more
than $100 million were announced in the period. The buyers that
managed to transact were all blessed with a low cost of capital,
while the sellers were mostly looking to solve cost of capital
Warburg, CPPIB and KERN all participated in deals, along with a
number of international sponsors that committed funding to small
cap publics with depressed stock prices. It is also not clear that
the full flush of credit pressure has been felt yet, as only one
major debt restructuring occurred this quarter, but there was
plenty of covenant relief going on.
In terms of asset allocation on the finance side, large
mid-streamers were most active, vastly outpacing activity by a
handful of conventional and oil sands focused issuers and sporadic
activity by international small caps. In general terms, the capital
famine continued for Canada's energy sector.
But it was warm, so not all was lost. Notable transactions over
the summer included:
CPPIB's $1 billion commitment to Wolf Infrastructure to
pursue midstream development in Canada
Suncor's $310 million acquisition of an additional 10%
interest in the Fort Hills project from Total
Lightstream's exchange of $585 million in unsecured notes
for $500 second lien notes
Long Run's agreement to complete a $200 million PIPE with
MIE Holdings (which was subsequently reduced to $100 million)
To obtain a copy of the complete overview of Canadian Oil
and Gas Acquisition and Finance Transactions – Third
Quarter, please click here.
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
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