Funds managed by Apollo will provide a USD300 million secured note to Cimpress, a commercial-printing company that owns Vistaprint and has been negatively affected by the coronavirus crisis.
Funds managed by Apollo will provide a USD300 million secured note to Cimpress, a commercial-printing company that owns Vistaprint and has been negatively affected by the coronavirus crisis.
Apollo’s investment into the e-commerce provider of customised print, signage, merchandise and marketing products to SMEs is meant to “optimise the company’s capital structure,” in the words of Reed Rayman, partner in private equity at Apollo.
For Apollo the deal marks the second large capital solutions transaction led by its Hybrid Value business in April, bringing its investment total to USD900 million this month.
Apollo launched its Hybrid Value strategy as an extension of its global platform that operates without barriers among its private equity, credit and real assets teams, designed to provide downside protection for investors.
The private equity firms’s CEO Leon Black first mentioned the new initiative in 2018, amid investor anxiety regarding an anticipated economic downturn.
Hybrid Value closed on its inaugural USD3.25 billion fund in March of 2019 and the fund is currently over 60 per cent committed.
The aim is to be able to commit sizable investments in a short timeframe – leveraging opportunistic and risk management insights in order to invest capital throughout market cycles and at different levels of the capital structure.
The Hybrid Value vehicle leverages the knowledge of Apollo’s private equity and credit businesses to provide debt and equity to corporates across the globe, said Apollo.
Last week Hybrid Value and related Apollo funds signed a USD 600 million preferred equity investment in online travel brand Expedia, under a similarly compressed timeline.
The investment will provide Expedia with some financial flexibility and resources to emerge from the current economic environment in a position of strength, according to the firm.
“When we created Hybrid Value, we saw the opportunity to use our underwriting and sector expertise to be a flexible and responsive capital partner to businesses,” explained Matt Michelini, senior partner and co-head of Hybrid Value.
He continued: “In challenging times like we are seeing now, companies frequently require expeditious, tailored capital solutions from a value-add strategic partner that can underwrite complex situations. This is evidenced by the fact Hybrid Value and related funds have invested USD900 million in debt and equity in the past week alone through the platform.”
Rob Ruberton, senior partner and co-head of Hybrid Value, commented on the recent deals: “The Cimpress and Expedia investments showcase our ability to work alongside company founders, management and large stakeholders, including those of market-leading public companies, to deliver bespoke debt or equity capital solutions.
“Our investments allow Cimpress to obtain covenant relief under its credit facility and will help improve Expedia’s liquidity position.”
