Mar 2024
This digest outlines some of the significant legal work undertaken by Conyers on behalf of our clients around the world in 2023.
The year was marked by continuing challenges in the global economy, including ongoing market volatility and geopolitical tensions. In the US capital markets, persistent inflationary pressures and interest rate hikes have created an unfavourable IPO market, but as inflation eases and interest rates stabilise, fears of a recession have quieted and the outlook for 2024 offers some promise of a “soft landing”. The journey to the public market may look different for many, however, as companies look increasingly to alternative private sector funding to achieve growth and stability before proceeding with a launch.
As our deal flow moves with the currents of the broader global economic landscape, the work summarised in this digest reflects these macro trends. Across our jurisdictions of Bermuda, the British Virgin Islands and the Cayman Islands we have observed a decrease in IPOs and a corresponding increase in debt offerings on the capital markets. Notable exceptions to this include the IPO of Inflection Point Acquisition Corp. II, a Cayman Special Purpose Acquisition Company, which launched is US$220 million base initial public offering on the Nasdaq Global Market in May, and the recent listing of BBB Foods on the New York Stock Exchange – the largest BVI IPO in recent memory. Privatisations remain attractive refinancing mechanisms, particularly in the Hong Kong market, while mergers, acquisitions and corporate restructurings continue to be sought-after strategic solutions for many of our corporate clients. Digicel’s historic US$3.8 billion cross-border restructuring, which successfully concluded on 29 January 2024, was a monumental undertaking achieved through collaborative efforts, marking a significant milestone in the corporate landscape.
From an industry focus perspective, we are pleased to share insights from our Insurance, Aviation and Shipping practices, which again echo the overall themes of financing solutions (via bond and note issuances) and business combinations. In the insurance space, the IPO of Bermuda-based Fidelis Insurance Holdings to the New York Stock Exchange in July, raising US$210 million in capital, is a stand-out development. A notable business combination in the shipping space was that of OSM Maritime, which combined with the Thome Group in a deal involving both Bermuda and BVI law that resulted in new company OSM Thome which manages a fleet of more than 1,000 ships.
2023 was also a year marked by various global regulatory developments, bringing this area to the fore for many companies. This rapidly evolving landscape has real implications on the day to day operations of our clients across jurisdictions and will continue to be of key importance in the coming year.
We hope this digest will be of interest to our legal colleagues, clients, and market followers.