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Soho House Take-Private Revived With Reworked Financing

Shareholders have approved the merger, with the stock rising after the updated terms.

Overview

  • An SEC filing details a new $50 million equity commitment from Morse Ventures and $50 million from MCR under the original agreement, bringing their total equity to $100 million.
  • An amended rollover stock agreement is expected to contribute about $50 million and unsecured note facilities are being increased to roughly $220 million.
  • Apollo Global Management will reduce its equity commitment to $30 million from $50 million under the revised structure.
  • Investors nearly unanimously backed the go-private transaction in a vote held one day after the initial funding shortfall emerged.
  • Shares rebounded nearly 13% following the financing update, the offer is $9 per share at roughly an 83% premium, and the company says it expects to close by late January.