Q2 2020 Global Private Equity Update

Summary of Post COVID-19 PIPE Deals -

Since the onset of the COVID-19 pandemic and the resulting social distancing guidelines and business shutdowns throughout the U.S., global markets have experienced volatility not seen since the 2008 financial crisis. Beyond the turbulence in public markets, businesses throughout the country and globally are feeling an increasing strain as they grapple with declining revenues, cash flow crunches and, in some cases, the need to increase capital expenditures as work-places implement social distancing practices and/or encourage employees to work from home. As public issuers seek to raise capital to weather the current storm, financial sponsors are increasingly viewing private investments in public equity (PIPEs) as an attractive means to achieve returns in an uncertain environment, and we are seeing a corresponding increase in the number of announced structured equity investments in public issuers.

We have reviewed a selection of seventeen PIPE transactions announced in April through June in which a private equity sponsor made an investment in convertible preferred stock (twelve deals), convertible debt (two deals), non-convertible preferred stock and warrants (two deals) and non-convertible debt and warrants (one deal). Below we highlight certain recurring key points resulting from our review of the PIPE transactions announced since the onset of the COVID-19 crisis.

Please see full Update below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Weil, Gotshal & Manges LLP | Attorney Advertising

Written by:

Weil, Gotshal & Manges LLP
Contact
more
less

Weil, Gotshal & Manges LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.