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Fly News Breaks for August 20, 2019
HGV, APO, BX
Aug 20, 2019 | 11:29 EDT
Goldman Sachs analyst Stephen Grambling notes that the NY Post reported that Apollo (APO) engaged Hilton Grand Vacations (HGV) in discussions to acquire the company and merge the latter's operations with its current portfolio company Diamond Resorts. The article also named Blackstone (BX) as a potential acquirer of Hilton Grand Vacations, he notes. The analyst views the potential for consolidation as a positive for Hilton Grand Vacations as he believes possible competitive bids could provide a backstop to valuation. Moreover, Grambling considers private equity's familiarity with timeshare and Hilton Grand Vacations as a positive sign for fundamentals. The analyst has a Buy rating and a $35 price target on Hilton Grand Vacations shares.
News For HGV;APO;BX From the Last 2 Days
BX
Sep 16, 2019 | 16:14 EDT
Stocks were lower, and oil prices higher, from the outset of trading following a drone attack on Saudi oil facilities on Saturday that knocked out more than 5% of global oil supply and shelved half of Saudi Arabia's daily export capacity. President Trump warned... To see the rest of the story go to thefly.com. See Story Here
BX
Sep 16, 2019 | 14:04 EDT
Blackstone (BX) is in advanced talks to buy and lease back the iconic Bellagio and MGM Grand Las Vegas casinos from MGM Resorts (MGM), Bloomberg's Scott Deveau, Gillian Tan and Christopher Palmeri report, citing people familiar with the matter. MGM Resorts has been exploring selling and leasing back the properties individually or bundled together, the publication adds. Reference Link
BX
Sep 16, 2019 | 06:40 EDT
Vivint Smart Home and Mosaic Acquisition Corp. announced they have entered into a definitive agreement to merge Vivint with a subsidiary of Mosaic. Following the merger, Mosaic will be renamed "Vivint Smart Home, Inc." With an agreed initial enterprise value of $5.6B, Vivint is anticipated to have revenues of $1.3B for fiscal year 2020E and Adjusted EBITDA of $530M, implying an Adjusted EBITDA multiple of approximately 10.5x. In connection with this transaction: Investment funds affiliated with The Blackstone Group (BX) and other existing investors of Vivint, including management, are retaining their full existing investment. Blackstone has agreed to invest an additional $100M in Vivint through an investment in the common stock of Mosaic immediately prior to the closing of the merger. Affiliates of Fortress Investment Group, a subsidiary of SoftBank Group (SFTBY), have agreed to invest an additional $125M in Vivint through an investment in the common stock of Mosaic immediately prior to the closing of the merger. This investment is in addition to the existing investments in Mosaic held by Fortress affiliates. The remaining outstanding shares of Vivint will be held by the current stockholders of Mosaic and certain other investors who are investing $150M in connection with the merger pursuant to forward purchase commitments obtained in connection with Mosaic's IPO, which includes $25M from Fortress. Additionally, David Maura is committing to purchase $5M under a 10b5-1 trading plan. Pro forma net leverage reduced from 5.5x to 4.3x LTM 6/30/2019 Covenant Adjusted EBITDA, with substantially all net proceeds expected to be used to repay debt. Blackstone and other existing investors of Vivint are expected to own approximately 78% of the outstanding shares of Vivint immediately following the merger. In total, there will be approximately $690M of net cash proceeds at closing, assuming no redemptions by Mosaic's public stockholders, including the $150M of forward purchase commitments obtained in connection with Mosaic's IPO. The net cash proceeds from these transactions, including Mosaic's cash on hand, are expected to be used for working capital and general corporate purposes, including to pay down a portion of existing Vivint debt. The transaction is expected to be completed during the fourth quarter or the first quarter of 2020, subject to approval by Mosaic and Vivint stockholders and other customary closing conditions. The boards of directors of both Vivint and Mosaic have unanimously approved the proposed transaction. Mosaic will apply to list the shares of its common stock being issued in connection with the merger on the New York Stock Exchange.