us-ftc-hsr-informal-interpretations-2615ae23563c43f8ff3651540f0af9e7•1708003 Informal Interpretation
1708003 Informal Interpretation
us-ftc-hsr-informal-interpretations-2615ae23563c43f8ff3651540f0af9e71708003 Informal InterpretationGuidance
Tags:
We agree no filing is required here.
Question
[Redacted],
We agree no filing is required here.
Karen
From: [Redacted]
Sent: Thursday, August 17, 2017 9:47 AM
To: Carson, Timothy
Cc: Shaffer, Kristin; Berg, Karen E.; Gillis, Diana L.
Subject: Rollover Exemption
Ty,
It was a pleasure speaking with you. And thank you for your time. Here are the steps of the contemplated transaction.
Steps:
A shell holding company called NewCo is formed solely to acquire and hold the shares of the Company B
Company A (a private equity firm) buys $27M in equity of NewCo
NewCo borrows $20M
NewCo purchases $47M in equity of Company B (a privately held entity)
Seller exchanges $30M in remaining equity of Company B in exchange for $30M in equity of NewCo (results in seller holding a percentage of shares in NewCo that is equal to the percentage of shares it held in Company B) rollover
Company A buys $20M in equity of NewCo
Here is the informal interpretation that I mentioned:
https://www.ftc.gov/enforcement/premerger‐notification‐program/informal‐interpretations/0501012
Based on this informal interpretation, it appears that there is no reportable transaction. Thank you again for your time and assistance.
Best,
[Redacted]
1 Haynes, Lanea From: Berg, Karen E. Sent: Friday, September 01, 2017 12:58 PM To: Gillis, Diana L. Subject: FW: Rollover Exemption From: Berg, Karen E. Sent: Thursday, August 17, 2017 10:09 AM To: Carson, Timothy; Cc: Shaffer, Kristin; Gillis, Diana L.; Sheinberg, Samuel I. Subject: RE: Rollover Exemption We agree no filing is required here. Karen From: Sent: Thursday, August 17, 2017 9:47 AM To: Carson, Timothy Cc: Shaffer, Kristin; Berg, Karen E.; Gillis, Diana L. Subject: Rollover Exemption Ty, It was a pleasure speaking with you. And thank you for your time. Here are the steps of the contemplated transaction. Steps: A shell holding company called NewCo is formed solely to acquire and hold the shares of the Company B Company A (a private equity firm) buys $27M in equity of NewCo NewCo borrows $20M NewCo purchases $47M in equity of Company B (a privately held entity) Seller exchanges $30M in remaining equity of Company B in exchange for $30M in equity of NewCo (results in seller holding a percentage of shares in NewCo that is equal to the percentage of shares it held in Company B) rollover Company A buys $20M in equity of NewCo Here is the informal interpretation that I mentioned: https://www.ftc.gov/enforcement/premerger‐notification‐program/informal‐interpretations/0501012 Based on this informal interpretation, it appears that there is no reportable transaction. Thank you again for your time and assistance. Best,
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