Ricky Sandler’s Eminence Capital finally threw
in the towel on Tailored Brands. The hedge fund firm recently
disclosed in a regulatory filing that it sold its entire stake,
mostly for $12.20 per share. This is more than 50 percent below
the stock price at year-end. The men’s clothing
retailer was formerly known as Men’s Wearhouse, a
Eminence activist target. In February Eminence had boosted
its stake to 14.9 percent.
In March the board of directors of
Tailored Brands agreed to nominate Sandler to its
board at the company’s upcoming annual meeting.
But last month Sandler decided not to stand for election,
citing in a regulatory filing at the time "significant demands
on his time relating to Eminence’s other portfolio
investments and his executive obligations."
He also stressed the decision "was not related to any
disagreement or dispute" with the company. What he apparently
didn’t say was he was fed up with the investment
and bailing out altogether. Shares of Tailored Brands surged
nearly 3 percent on Tuesday, to close at $12.63.
Discovery Capital Management unloaded nearly 6.2 million
shares of Peabody Energy for $23.09 per share, reducing the
stake to 4.9 percent. This means it no longer has to make
timely filings when it sells additional shares of the coal
Valeant Pharmaceuticals International surged nearly 25
percent on Tuesday, to close at $12.09, after the company
reported a big cut in its debt. The company announced that in
the first quarter it cut debt by $1.3 billion and lopped off
$3.6 billion in debt since the end of the first quarter of
2016. It also said it successfully refinanced its debt,
enabling it to reduce its debt maturity profile.
It increased its mixed of fixed debt with floating rate debt
and increased covenant flexibility, it said. In its quarterly
report, Valeant also said it completed more than $1.3 billion
in asset sales, including the earlier than expected closure of
the sale of the CeraVe, AcneFree, and AMBI skincare brands, and
is on track to close the sale of Dendreon Pharmaceuticals for
$819.9 million in cash proceeds by mid-year.
Farallon Capital Management participated in the $550
million Series E financing of Sea Limited, a shopping and
online games company that is being called by some as southeast
Asia’s most valuable start-up. The company, which
is competing with Alibaba and others, was also rebranded from
its former name, Garena, according to Bloomberg.