Catalyst Capital Boosts Callidus IPO Amount 44% to C$252 MillionDoug Alexander
Catalyst Capital Group Inc., a Toronto-based private-equity firm, raised C$252 million ($230 million) in an initial public offering of its Callidus Capital Corp. unit, 44 percent more than it expected, according to a person familiar with the transaction.
Callidus, which makes loans to companies unable to find traditional financing, sold 18 million shares for C$14 each in its IPO, said the person, who asked not to be named because the terms aren’t public. The Toronto-based company initially sought to raise C$175 million from selling a 35 percent stake with shares priced at C$12 to C$14 each, according to March 26 sale documents.
Callidus targets Canadian and select U.S. borrowers whose perceived risk is too high to meet the criteria of traditional lenders, and whose capital requirements are too small to access high-yield markets, the company said in a filing. The firm’s chief executive officer is Newton Glassman, founder of Catalyst and a former managing director with Cerberus Capital Management LLC.
E-mail messages with Catalyst and Glassman, who was traveling, weren’t immediately returned.
Canaccord Genuity Group Inc. led a group of seven banks on the sale.