Here are five things you need to know this morning
More private credit concerns: While the war in Iran, and its impact on energy and other sectors, has been top of mind for investors of late, there is also growing concerns about trouble in private credit markets – and the possible spinoff effects. The latest events include Apollo Global Management curbing redemptions from one of its largest non-traded private credit funds for retail investors, and Moody’s downgrading its rating on a private credit fund run by KKR and Future Standard to junk amid rising bad loans and a string of weak earnings. Retail investors have been rushing to withdraw investments in private credit funds amid concerns about upcoming credit losses, especially related to software loans. Many funds have responded by limiting redemptions.
Dollarama sales below estimates: Dollarama missed estimates for fourth quarter same store sales. The discount store says unfavourable weather conditions negatively impacted store traffic at key times. The Montreal-based company notes it reached new customers through the opening of 75 new stores. The company also raised its dividend by 12 cents per share
Strategic review at Boralex: Boralex is confirming it is conducting a strategic review of the company. According to Bloomberg, the renewable energy provider is also weighing a potential deal to go private. The Montreal-based company is working with Canadian banks to handle proposals, according to people familiar with the matter. The deliberations are early and the company could still decide to remain public.
Atkins-Realis U.K. deal: Atkins-Realis has received a contract worth approximately 98 million pounds from Britain’s rail infrastructure owner network Rail. The Montreal-based company will work to upgrade signalling and telecommunications infrastructure in south England. The engineering services company will deliver end-to-end design, project management and construction services over three years
Fragrance merger: Estee Lauder is in talks to buy Puig Brands in a deal that would create a cosmetics giant with about US$20 billion in annual sales. A takeover of the Spanish company would give Estee Lauder access to well-known perfume and fashion brands like Rabanne and Jean Paul Gaultier, helping it compete better against rival cosmetics company L’Oreal. For Puig, the move follows slowing growth and downgrades of earnings estimates.
