Nuvei Conducts Secondary Bought Deal Financing For US$500 Million

Nuvei Corporation (TSX: NVEI) announced this morning that it has entered into a US$500 million bought deal secondary financing. The agreement was made with a team of underwriters led by Goldman Sachs Canada Inc., Credit Suisse, Scotiabank, and National Bank Financial Inc.

Under the agreement, the underwriters have agreed to purchase 7,165,377 Nuvei subordinate voting shares at US$69.78 per share. The offering will also be extended to qualified buyers in the United States under the United States Securities Act.

The selling shareholders include Novacap Management, Whiskey Papa Fox Inc (which is owned by CEO and Chair Philip Fayer), CDP Investissements (owned by Caisse de dépôt et placement du Québec), Nuvei CTO Keith Birdsong, Nuvei North America President Mark Pyke, and Nuvei Digital Payments Managing Director Yuval Ziv.

As a result of the offering, the selling shareholders will see their stake reduced as follows:

  • Novacap: down to 37.1% voting power (30,555,132 multiple voting shares) from 37.6% voting power (33,231,979 multiple voting shares)
  • Whiskey Papa Fox: down to 33.8% voting power (27,857,328 multiple voting shares) from 34.3% voting power (30,297,828 multiple voting shares)
  • CPDQ: down to 21.4% voting power (17,652,159 multiple voting shares) from 21.7% voting power (19,198,613 multiple voting shares)

The net proceeds of the offering will be paid directly to the selling shareholders. The underwriters have also been given an exercisable option to purchase up to additional 15% of the offering within 30 days after the closing of the transaction.

After the offering transpires, Nuvei’s total number of issued and outstanding shares will be 139,077,257, of which 63,012,638 will be subordinate voting shares and 76,064,619 will be multiple voting shares.

The transaction is currently expected to close on June 7, 2021, subject to customary and regulatory approvals.

The announcement follows a US$494 million secondary bought deal conducted just two months ago, wherein Novacap, Whiskey Papa Fox, and CDPQ also sold significant portions of their position.

Nuvei Corp last traded at $88.75 on the TSX.

Information for this briefing was found via Sedar and Nuvei Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply