Top of the Morning
CURO (a.k.a. Speedy Cash), a Wichita, Kansas-based provider of payday loans and other financial services to the unbanked, has filed for a $100 million IPO. It plans to trade on the NYSE under ticker symbol CURO, with Credit Suisse listed as left lead underwriter. The company reports $33 million of net income of $442 million of revenue for the first half of 2017, and is owned by private equity firm FFL Partners.
- Why it's the BFD: Because this filing comes just weeks after the Consumer Finance Protection Bureau issued strict new rules on payday lending, with most provisions slated to become effective in mid-2019. If not overturned by Congress – or rescinded by whoever follows Richard Cordray as CFPB boss – these rules would eventually eat into both CURO's top and bottom lines, even if they also prompt industry consolidation.
- Ridiculous rates: Per its website, Speedy Cash charges $273.01 in fees on a $500 short-term installment loan in Nevada. That works out to a whopping APR of 438.78%, and assumes all payments are made on time over a 77-day period.
- Bottom line: Yuck.
Venture Capital Deals
Private Equity Deals
🚑 Smith & Nephew has agreed to acquire Rotation Medical, a Plymouth, Minn.-based tissue regeneration company, for upwards of $210 million (including $125m in cash up-front). Rotation Medical had raised around $58 million in VC funding from NEA, Life Sciences Partners and Pappas Ventures. http://axios.link/9EQt
More from the Brunswick survey of more than 100 M&A advisors, which comes ahead of this week's XBMA symposium at Stanford:
Top positive impact for M&A by geography:
- USA: Tax policy (33%)
- China: Road & Belt Initiative (68%)
- Europe: Shareholder activism (50%)
Most negative impact for M&A by geography:
- USA: Trump and CFIUS (44%)
- China: Limitations on outbound investment (52%)
- Europe: Geopolitical risks (51%)