It appears that several Nuvei Corp (TSX: NVEI) shareholders are looking to liquidate their positions. The company this morning announced that it has entered into a US$494.0 million bought deal secondary financing.
The financing will see a number of shareholders reduce their positions, including Novacap Management, Whiskey Papa Fox Inc (which is owned by CEO and Chair Philip Fayer), CDP Investissements (owned by CDPX Quebec), and David Schwartz, CFO of the firm. The bought deal will see shares sold to a number of underwriters, including Goldman Sachs Canada, BMO Capital Markets, Credit Suisse, and RBC Capital Markets.
Under the terms of the arrangement, the selling shareholders will sell a total of 8.2 million subordinate voting shares at a price of US$60.22 per share, resulting in total gross proceeds of US$494.0 million that will be paid in aggregate to the selling shareholders. An over-allotment option has alse been granted by the selling shareholders.
As a result, a number of positions will be reduced by major shareholders, including:
- Novacap will see its 36,789,095 multiple voting shares reduced to 33,618,577 multiple voting shares. Ownership in terms of voting power will effectively reduce from 37.99% to 37.70%.
- Fayer Holdco will reduce its holdings from 34,205,100 multiple voting shares to 30,657,273 multiple voting shares. Ownership reduces from 35.32% to 34.38%.
- CDPQ holdings fall from 21,253,613 multiple voting shares to 30,657,273 multiple voting shares. Ownership declines from 35.32% to 34.38%.
- David Schwartz holds 35,213 subordinate voting shares. He will exercise 249,999 of his vested options to keep his shares held the same. Ownership of 0.03% will as a result remain unchanged.
The offering is currently slated to close March 24, 2021. The company will not receive any proceeds from the sale.
Nuvei Corp last traded at $82.99 on the TSX, or $65.46 in USD terms.
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.
