The ink has finally dried on KPMG dealmaker turned publican Jon Adgemis’ $400 million refinancing for Public Hospitality Group, which Street Talk began writing about 13 months ago.
Sources said Deutsche Bank and Muzinich & Co, a New York-headquartered private funder, have executed the deal documents. An announcement is expected as early as Wednesday, after Deutsche’s slice settles.
Of note, those sources suggested the colourful dealmaker would no longer have an operational role in the business and will pivot his attention to developing Public Hospitality’s pubs, which should have a bit more breathing room now that its lenders are no longer pursuing him.
Deutsche Bank agreed to refinance Public Hospitality’s debts in May, a month after Bain Capital Credit and its partner Madigan Capital walked away after lengthy discussions failed to result in a deal.
In late June, Street Talk spotted Deutsche trade positions in five assets to US private credit group Muzinich, which took a subordinated position from Macquarie. The German bank was also looking to buy senior debt held by major lender Gemi Investments in the development pool at a discount.
Lastly, lender Archibald Capital and Justin Epstein, who is a minority shareholder of Gemi Investments, were trying to assert control over their situation, attempting to block other financiers muscling into the debt stack.
But it looks like Deutsche Bank has got all the ducks, or lenders, in a row finally. After a year of difficulties – from a stoush with the Gazal family to a visit from the Australian Taxation Office – Adgemis will be hoping that this deal will wipe the slate and make the next 12 months much better.
Read the full story tomorrow and more on the Street Talk page.
From the column
Fletcher Building’s sale of plumbing and bathroom supplier Tradelink is down to two bidders: a secretive US billionaire family and an entity related to InfraBuild boss Dak Patel’s family.Fund managers were being offered $1.9 billion worth of shares in Andrew Forrest’s Fortescue at a steep 8.8 per cent to 6.1 per cent discount.Restructuring bigwigs have begun courting the administrator role at CFMEU’s east coast construction divisions.Well-regarded winemaker Warren Randall inched up to 19.5 per cent of Tassie whisky maker Lark Distilling via an equity raise. We asked the CEO if there’s a bid coming, and here’s what he said.At JPMorgan, the monster Fortescue block trade landed on the same day as its ECM co-head Jonas Troeber was appointed the team’s sole boss.
In other news
Genesis Capital has finally increased its bid for Pacific Smiles, as its dealmakers make an 11th-hour push to topple their erstwhile employer Crescent Capital’s $305 million buyout proposal.From Brookfield’sHealthscope to non-profit St Vincent’s: Inside the stoush between private hospitals and health insurers.Mining juggernaut Glencore’s boss Gary Nagle is testing shareholder appetite to sell its NSW and Queensland coal mines. Some investors say no.
The chart
The first leg of Lark Distilling’s $22.5 million equity raise would take director Warren Randall from about 3.8 per cent of the register to 19.5 per cent, within a hair’s breadth of the maximum permissible 19.99 per cent under takeover rules.
