Hein Park Capital Management is exploring the sale of its stake in Cirque du Soleil Entertainment Group, the company known for its live shows in Las Vegas and elsewhere, according to people with knowledge of the matter.
The investment firm, led by Courtney Carson, is working with advisers who have reached out to prospective buyers of its roughly 15% stake, said some of the people, who requested anonymity as the information is private. Some of the contacted parties have expressed interest in acquiring the company in entirety, said some of the people, but Cirque isn’t for sale, other people with knowledge of the matter said.
A transaction for Hein Park’s stake, which other minority investors may elect to participate in, could give the company an equity value of $2 billion or more, one of the people said.
“Cirque du Soleil is not for sale and we are very excited about our prospects for the future,” a spokesperson for the company said in a statement. “We cannot comment on efforts by some minority equity holders that may be looking to monetize their positions due to individual circumstances.”
Representatives for Hein Park declined to comment.
Lenders, which included Catalyst Capital Group and Eldridge’s CBAM Partners, seized control of Cirque du Soleil in 2020 after its operations ground to a halt due to the Covid-19 pandemic and the company declared bankruptcy.
The business, led by CEO Stephane Lefebvre, said last year that it closed a $550 million term loan to refinance existing debt and obtained a new $100 million revolver, moves that the company said helped deleverage its balance sheet.
Source: Mint