Today - Monday, July 6, 2015
- Jack in the Box (NASDAQ:JACK) will replace Advance Auto Parts (just got promoted to the S&P 500) in the S&P MidCap 400 after Wednesday's close. Northfield Bancorp (NASDAQ:NFBK) will take JACK's spot in the S&P SmallCap 600.
- Simultaneously, West Pharma (NYSE:WST) will replace Advent Software (getting acquired) in the S&P 400. Constant Contact (NASDAQ:CTCT) will take West's spot in the S&P 600.
- JACK +1.3% AH. NFBK +3.8%. WST +1.3%. CTCT +1.8%.
- Financial Times appreciates the creativity Linn Energy (LINE, LNCO) is showing in trying to maintain its payout to investors, potentially finding a way to keep growing so the company can support and expand its dividend at a time when preserving cash is paramount.
- In January, Linn cut its dividend by more than 50% but also announced a financing joint venture with a P-E firm which would fund $500M in drilling costs in exchange for getting a preferred return, and in March, it unveiled a $1B vehicle with another firm to fund acquisitions of oil and gas acreage; today, Linn finally closed those deals, allaying concerns that they may not get completed.
- Cash flow did not cover Linn's dividend in Q1, and fears of a repeat have persisted, but if the MLP has found a way to withstand the oil rout, look for its yield to normalize, not because its dividend will be cut, but because its share price will rise, FT writes.
- Newton, MA-based Chiasma (Pending:CHMA) is set for its IPO of 5.36M shares of common stock at $13 - 15.
- The late clinical stage biopharmaceutical firm develops oral forms of medications that are currently available only by injection through the leveraging of its proprietary Transient Permeability Enhancer (TPE) technology platform. Its lead product candidate is Orphan Drug-designated oral octreotide for the treatment of acromegaly, a condition where the body produces excess growth hormone. The company submitted its New Drug Application (NDA) to the FDA several weeks ago on June 15.
- 2014 Financials ($M): License Agreement Revenue: 13.2 (-82.0%); Operating Expenses: 15.0 (-56.6%); Net Loss: (2.9) (+45.6%); Cash Burn: (6.4) (-113.9%).
- Two weeks after TerraForm (NASDAQ:TERP) disclosed it's in talks to buy up to $2.6B worth of wind plants, TerraForm and parent SunEdison (NYSE:SUNE) have announced the former is acquiring 930MW of U.S. and Canadian wind plants from private Invenergy for $2B.
- TerraForm will directly acquire 460MW, with the remaining 470MW acquired by a new warehouse facility. The directly-acquired plants will be paid for via cash on hand and new bonds; TerraForm is also assuming $450M in non-recourse project debt.
- The acquisitions are expected to produce an average of $141M/year in unlevered cash available for distribution (CAFD) over the next 10 year, yielding a cash-on-cash return of 8.4%. Invenergy will keep a 9.9% stake in the U.S. assets.
- TerraForm is hiking its 2016 dividend/share target by $0.17 to $1.70, and its long-term dividend/share growth target to "a 20 percent CAGR from its current [Q1] dividend."
- Four days ago, SunEdison announced an MOU for a 1GW wind plant JV with Spanish wind turbine maker Gamesa. The purchases are the latest in a string of wind plant acquisitions by SunEdison/TerraForm (I, II, III).
- SunEdison has jumped to $30.05 in AH trading. TerraForm hasn't yet moved.
- Denison Mining (NYSEMKT:DNN) agrees to acquire Fission Uranium (OTCQX:FCUUF) for ~C$483M ($382M) to expand its presence in the Athabasca mining region in Saskatchewan.
- DNN says the deal that implies a price per Fission common share of C$1.25, representing a ~18% premium to the 30-day volume weighted average price of Fission's shares.
- Fission's 100%-owned Patterson Lake South Project and DNN's 60%-owned Wheeler River Project, both located in the Athabasca Basin, will headline the asset portfolio of the combined company.
- Dev Randhawa, Fission’s chairman and CEO, will be CEO of the combined company.
- In preparation for its uplisting to the Nasdaq Capital Market, BioRestorative Therapies (OTCQB:BRTX) reverse splits the number of it common shares 1:20 effective tomorrow. The stock symbol will be "BRTXD" for 20 days and then revert back to BRTX. The action will reduce the number of common shares from 54,387,963 to 2,719,399.
- Freshpet (NASDAQ:FRPT) chief marketing officer Scott Morris has been promoted to the newly-created role of COO. He'll now be "responsible for sales and marketing, innovation, and Freshpet Fridge operations."
- Also: 1) Stephen Weise, formerly an exec at consulting firm TBM, has been named EVp of manufacturing and supply chain. 2) Lisa Barrette, formerly an exec at Pinnacle Foods, has been named VP of business development (reports to Morris). 3) Chris Taranto, formerly Freshpet's director of supply chain management, has been promoted to VP of procurement and planning (reports to Weise).
- Shares fell 3.8% in regular trading ahead of the announcement.
- Retrophin (NASDAQ:RTRX) closes the sale of its Rare Pediatric Disease Priority Review Voucher to Sanofi (NYSE:SNY) for $245M, payable via an upfront fee of $150M plus two additional payments of $47.5M, one in 2016 and the other in 2017.
- The voucher, which Retrophin acquired from Askepion Pharmaceuticals, can be sold or transferred an unlimited number of times. It shortens the FDA's review clock for a New Drug Application (NDA) from 10 months to six, clearly valuable to drug makers.
- Previously: Retrophin bags $245M from Sanofi for priority review voucher (May 27)
- Arch Coal (NYSE:ACI) is downgraded further into junk territory by Fitch Ratings, which cuts the company's rating to C from CCC and says further negative ratings actions are possible if ACI's revenue does not increase materially or liquidity does not improve over the next 12-18 months.
- Fitch says it expects ACI's cash and short-term investments will provide sufficient liquidity through 2017, but that the company's cash burn - which the ratings agency estimates will total at least $200M/year through 2017 - will continue without a substantial recovery in prices for coal used in steelmaking.
- ACI on Thursday offered to swap four bond issues for new borrowings with a lower face value but better collateral (I, II), which would reduce its $3.1B long-term debt load but could give creditors a tighter grasp on the company's assets if continued deterioration in coal prices forces a debt restructuring.
- Germany's ProSiebenSat.1 (OTCPK:PBSFF) and Axel Springer (OTC:AXELF) are in early merger talks, which would create a company with broadcast and publishing assets and a combined market cap of about $16B, The Wall Street Journal reports.
- The combination would get a hard regulatory look, though their combined revenues of about €5.9B still trail giant Bertelsmann -- Germany's largest media company, with €16.7B in revenue last year.
- ProSieben would be the senior partner in this go-round, sources said. Axel Springer tried taking over ProSieben in a 2005 deal valuing the satellite firm at more than €4B, but regulators squelched the agreement. The emergence of digital rivals has changed the landscape since then.
4:49 PM| Comment!
- San Carlos, CA-based BioCardia (BCDA) is set for its IPO of 3,846,154 shares of common stock at $12 - 14.
- The clinical stage regenerative medicine firm develops novel therapeutics to treat cardiovascular diseases. Its lead product candidate is the CardiAMP Cell Therapy System (CardiAMP), a comprehensive treatment that uses the patient's own cells to treat ischemic systolic heart failure, which is heart failure that develops after a heart attack. CardiAMP consists of a cell potency screening test, a point-of-care cell processing platform and a biotherapeutic delivery system. The entire process can be performed in 60 - 90 minutes and the patient can return home the same day.
- 2014 Financials ($M): Expenses: 7.2 (+3.1%); Net Loss: (10.2) (-84.8%); Cash Burn: (5.9) (-10.1%).
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