Clearspring Capital Partners becomes Telecon largest shareholder

Ted Liu

Telecon Inc., a company owned by Capital régional et coopératif Desjardins (CRCD) and Caisse de dépôt et placement du Québec (CDPQ), has completed a $70 million equity financing led by Clearspring Capital Partners. Members of Telecon’s senior leadership team also participated in the financing.

Clearspring Capital Partners has acquired 35% stake from majority owner, Capital régional et coopératif Desjardins (CRCD), becoming the largest shareholder. Lawrence Stevenson, Managing Director Clearspring, has joined Telecon’s board of directors as Chair, along with Clearspring Partner, Marie-Claude Boisvert.

Caisse de dépôt et placement du Québec will maintain its 30% ownership in Telecon.

Capital régional et coopératif Desjardins and Caisse de dépôt et placement du Québec have previously invested $79 million in Telecon.

[mepr-active rule=”374″ ifallowed=”hide”]Math does not ADD UP. Read our research on this and other deals. We offer monthly/yearly recurring or one-time subscriptions. [/mepr-active][mepr-active rule=”374″]
According to the Quebec corporate registry: the deal closed on July 10, 2017. CRCD is still listed as the largest shareholder ahead of CDPQ (2nd) and Clearsping (3rd). The ranking should be Clearspring, CDPQ and CRCD, according to the news.
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“This equity financing marks a major milestone for Telecon as we expand our Canadian footprint across a diversified suite of telecommunication network services,” said André Héroux, President and Chief Executive Officer of Telecon. “The financing and introduction of Clearspring as our new lead investor will allow us to strengthen our capital structure while also promote tight strategic and operational execution.”

“Clearspring is proud to be partnering with Caisse, Capital régional et coopératif Desjardins and management to continue to grow this impressive company,” said Lawrence Stevenson, Managing Director at Clearspring. “Telecon has built very strong relationships with key customers and is led by a remarkable and experienced team. Our capital will help support Telecon’s long-term growth plans.”

“As demand for fiber optic networks continues to grow and the industry prepares for the arrival of 5G, Telecon is well positioned to capture growth over the long-term,” says Christian Dubé, Executive Vice-President, Quebec, at Caisse. “We are delighted to welcome Clearspring, a fund with whom Caisse often collaborates, and look forward to continuing our partnership with CRCD and the Telecon team.”

“We are very pleased to have supported the management team and the growth of Telecon since 2011, the year when we led the transition of Telecon from a family-owned business to an institutionally-backed industry leader,” said Luc Ménard, Chief Operating Officer of Desjardins Business Capital régional et coopératif. “Our long-term commitment to Telecon’s future success remains strong and steadfast and we are delighted to see Clearspring become a partner with CRCD, Caisse and the management team.”

National Bank Financial acted as exclusive financial advisor to the company, while BCF and Stikeman Elliott LLP acted as legal advisors to Telecon.

Concurrent to the closing of the equity financing, Telecon banking syndicate has increased its combined bank lines by $60 million to $180 million. The banking syndicate is being led by Bank of Montreal and includes National Bank of Canada, Laurentian Bank of Canada, Bank of America and Bank of Nova Scotia as lenders. The increase will continue to provide Telecon with the financial flexibility required to support its operations and national growth.

photo credit: Alberto Adán via pixabay