What you Need to Know for April 2nd

Together with Pegasus Insights

Welcome back.

Well this is weird for us, this is our last week at 2x/week. We are transitioning to 3x/week starting next week. Here’s our schedule:

• Sundays, 8pm ET

• Wednesdays, 6:30am ET

• Fridays, 6:30am ET

However, if there any holidays (Memorial Day Weekend, July 4th, the late-august slow period) you will see us flex back to 2x/week.

We’ve had a bit of a relief rally this week, but following Trump’s speech last night, futures are down and oil is back up. The President didn’t really say anything new, and the reiteration that the U.S. is going to press hard over the next 2-3 weeks is the biggest driver of negative price action at the moment.

Today’s newsletter is brought to you by Pegasus Insights. Let’s get into it.

Earnings Corner 💸 

• $NKE ( ▼ 15.51% )  Nike had a top and bottom line beat, with revenue essentially flat y/y as growth in North America and wholesale (+5%) offset declines in Greater China (-11%) and weaker direct to consumer trends, driving results above expectations despite margin pressure from higher tariffs and rising costs. The bigger story was guidance, with Nike now expecting low single digit revenue declines and about a 20% sales drops in China next quarter. Shares fell sharply following the update.

• $RH ( ▼ 19.29% )  RH missed on both revenue ($842.6M vs. $873.6M) and EPS ($1.53 vs. $2.20). Results were pressured as tariff related disruptions delayed inventory and drove $30M in lost sales, alongside $10M lost in revenue from weather as storms disrupted store traffic and deliveries. Demand remained soft amid a weak housing backdrop, forcing the company to discount more even as costs stayed elevated, squeezing profits. The company guided below expectations, reflecting continued tariff headwinds, housing driven demand weakness, and limited near-term improvement.

• $FDS ( ▲ 3.63% )  FactSet beat on revenue ($611M vs. $604M) and EPS, with sales up 7.1% y/y driven by strong subscription growth, client additions, and increased demand for data and analytics tools. The company raised guidance to $2.45B–$2.47B and EPS of $17.25–$17.75.

• $CAG ( ▼ 1.27% )  Conagra beat on revenue ($2.79B vs $2.77B) but missed slightly on EPS. Results were driven by higher pricing, which helped offset weaker consumer demand, while margins were pressured by higher input costs and softer volumes. Guidance came in cautious, reflecting continued cost pressures and a still-stretched consumer backdrop.

• $LW ( ▼ 8.95% )  Lamb Weston had a top and bottom like beat with revenue at $1.56B vs. $1.48B and EPS $0.72 vs. $0.61. Strength in North America volumes drove the beat, though pricing support to move product pressured margins, while International remained weak amid softer demand and potato oversupply in Europe. The company raised full year sales and EBITDA guidance modestly, though margin pressure persists.

• $PLAY ( ▲ 16.07% )  Dave and Busters missed on revenue ($529.6M vs. $557M) and EPS (–$0.35 vs 0.39). Results were pressured by weaker comps and softer traffic, with winter storms further weighing on demand, though trends improved sequentially through the quarter. Management guided to a stronger 2026 with over $100M in cash generation, driven by improving same store sales trends and tighter cost control, sending shares higher.

On The Move 📈 📉

• $BYND ( ▼ 11.57% )  Beyond Meat shares fell as the market reacts to the company’s recent earnings which were weaker than expected, revenue came in at $61.6M vs. $63M and the company issued lower guidance of $57–59M vs. $67M. Continued weakness in plant based demand and falling volumes signal the slowdown isn’t improving, keeping pressure on sales and margins.

• $INTC ( ▲ 8.84% ) Intel shares jumped after the chipmaker said it will repurchase a 49% stake in its Ireland Fab 34 facility from Apollo Global Management for $14.2B, reversing a 2024 cash raising deal and signaling improved financial strength as demand for server CPUs rises alongside AI workloads.

• $MU ( ▲ 8.88% )  Micron was named a top pick at Cantor, resulting in strong days for Sandisk $SNDK ( ▲ 9.03% ) and Western Digital $WDC ( ▲ 10.07% ) as well

IPO Roundup 📍 

• SpaceX has filed confidentially for an IPO, targeting a potential $1.75T valuation.

• TK Elevator, the industrial elevator manufacturer, backed by Advent and Cinven is considering an IPO, among other strategic options. The valuation may reach $28.7B.

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Today’s Headlines 📖🍿 

• KKR is curbing redemptions to 5% in its KKR FS Income Trust BDC. They received a 6.3% repurchase request, but like many private credit firms are holding at industry standard 5% rates.

• Archroma launches $1B+ refinancing: Banks are syndicating $846M in leveraged loans and a $200M second-lien tranche priced at S+900-925 to refinance upcoming maturities as the chemical sector faces tariff headwinds.

• PE taps $94B to fund dividends: PE-backed companies borrowed $94B in leveraged loans and high-yield bonds to fund 2025 sponsor payouts. Total activity neared $200B across 2024-2025, with $88B distributed to sponsors.

• JPMorgan amends Sealed Air LBO: JPMorgan revised terms on the $7.2B buyout after investor pushback for greater protections, with an OID now set for 95-96 cents on the dollar. The $4.1B loan struggled to attract demand despite being priced at 97.5 OID, while the $1.85B bond tranche performed better with $3.9B in orders.

• Senior creditors of Vista-backed Solera, including Apollo and Pimco, have signed a cooperation agreement with White & Case ahead of the company’s $3.2B first-lien term loan due in 2028, which is currently quoted at 87 cents on the dollar, down from 97 cents in January.

• GFL Environmental nears a $900M acquisition of Frontier Waste Solutions, as the trash collector looks to expand its U.S. footprint.

• Blank Street is in talks to raise $100mm+ in new funding, targeting a $1B valuation, as the coffee chain seeks to expand in the US and UK.

• Related Digital, is nearing completion of $16B in financing for an Oracle-backed Michigan data center: This Saline Township, Michigan center will include $2B in equity from Blackstone and $14B in debt from Bank of America. Pricing has widened from initial levels of S+225 to S+450. 

  • Meanwhile Oracle is reportedly cutting 20,000 to 30,000 employees (18% to 20% of workforce) as the Company cuts costs and pushes resources towards AI datacenter buildouts like these.

• BC Partners has secured €2.2B for Fund XII, halfway to its €5B target.

• Amazon Leo will roll out on Delta flights starting in 2028, providing in-air connectivity to 500 planes to start.

  • Meanwhile, rumors are swirling that Amazon is in talks to buy Globalstar, a LEO satellite company that trades at a ~$8.6B valuation currently.

• JP Morgan is evaluating entering the prediction markets industry, but would avoid areas like sports and politics.

• Mercor was hit by a cyberattack tied to a LiteLLM project that resulted in a material data leak that reportedly includes video and verification data.

• Coreweave raised a $8.5B IG-rated loan, secured by GPUs and backed by contracts with Meta worth at least $19B. MUFG, MS, GS, and JP Morgan participated and the two tranches priced at S+225 and a fixed rate of 5.9%.

M&A Transactions💭 

Traverse Midstream Partners, operator of an investment platform, has entered into a definitive agreement to be acquired for $2.25B by 2PointZero. The transaction was supported by $1.1B of debt financing.

Sterno, manufacturer of light and heat products, has reached a definitive agreement to be acquired for $292.5M by Archer Foodservice Partners. EV/EBITDA was 9.65x. Raymond James and Jefferies advised on the sale.

Rio Galeao Aeroporto Internacional, operator of an airport, has reached a definitive agreement to be acquired for BBRL 2.9B by Aena, S.M.E (MAD: AENA). EV/Revenue was 22.08x.

Restaurant Depot, supplier of restaurant and catering supplies, has reached a definitive agreement to be acquired for $29.1B by Sysco (NYS: SYY). EV/EBITDA was 13.86x and EV/Revenue was 1.82x. J.P. Morgan and Evercore Group advised on the sale.

Kwality Walls India (NSE: KWIL), engaged in the manufacture, marketing, distribution, and sale of ice creams, was acquired for INR 29.978B by The Magnum Ice Cream Company (AMS: MICC).

Kubra, developer of printed and electronic billing, has reached a definitive agreement to be acquired for $372.0M by Repay Holdings (NAS: RPAY). EV/EBITDA was 2.09x and EV/Revenue was 0.68x. Financial Technology Partners advised on the sale.

Fonterra Co-Operative Group’s Consumer, Dairy Ingredients and Food Service Business was acquired by Groupe Lactalis for $4.22B.

Fidere Patrimonio Socimi (MAD: YFID), a real estate investment company, was acquired for EUR 1.05B by Brookfield Corporation. Eastdil Secured advised on the sale.

Electrical Power Products, manufacturer of power management systems, has reached a definitive agreement to be acquired for $1.1B by Flex (NAS: FLEX). RA Capital advised on the sale.

Unilever Foods, producer of food products, has reached a definitive agreement to be acquired for $44.8B by McCormick & Company (NYS: MKC). Morgan Stanley and Goldman Sachs advised on the sale.

STADA Arzneimittel, manufacturer of pharmaceuticals and consumer healthcare products, was acquired for EUR 7.0B by CapVest Partners. The transaction values the company at $10.0B. EV/EBITDA was 10.68x and EV/Revenue was 2.39x. Deutsche Bank, ERM Capital, J.P. Morgan, Morgan Stanley, Goldman Sachs, Jefferies, and Rothschild & Co advised on the sale.

QMS Media, provider of outdoor media services, was acquired for $850.0M by Nine Entertainment (ASX: NEC).

PayneCrest Electric, provider of electrical networking and systems integration services, has reached a definitive agreement to be acquired for $422.0M by Primoris Services (NYS: PRIM). FMI advised on the sale.

Mainland, producer of dairy and food products, was acquired for NZD 4.22B by Groupe Lactalis. Jarden Group and J.P. Morgan advised on the sale.

EGYM, developer of a professional fitness platform, was acquired for $7.5B by Affinity Partners, Temasek Holdings, L Catterton, and Mindbody. EV/Revenue was 93.52x.

Connecticut Sun, operator of a professional women’s basketball team, has reached a definitive agreement to be acquired for $300.0M by Fertitta Entertainment.

Centessa Pharmaceuticals (NAS: CNTA), a clinical-stage pharmaceutical company, has reached a definitive agreement to be acquired for $6.417B by Eli Lilly (NYS: LLY). EV/Revenue was 427.82x. Centerview Partners and Jefferies advised on the sale.

Bull, developer of AI software and a subsidiary of Atos (PAR: ATO), was acquired for EUR 404.0M by The French State. The company will receive a contingent payout of EUR 104.0M upon the completion of certain performance metrics.

Apellis Pharmaceuticals (NAS: APLS), a commercial-stage biopharmaceutical company, has reached a definitive agreement to be acquired for $6.074B by Biogen (NASS: BIIB). EV/EBITDA was 106.85x and EV/Revenue was 6.05x.

Private Placement Transactions💭 

Borealis, manufacturer of chemicals, received EUR 16.5B of financing from OMV.

ScaleOps, developer of an optimization platform, raised $130.0M of Series C venture funding led by Insight Partners at a pre-money valuation of $670.0M.

Rebellions, developer of AI semiconductor-based full-stack alternatives, raised $400.0M of venture funding led by Mirae Asset Financial Group and Korea Development Bank at a pre-money valuation of $1.94B.

Whoop, developer of a wearable performance improvement device, raised $575.0M of Series G venture funding led by Collaborative Fund, Mubadala Investment Company, 2PointZero Group, and The Qatar Investment Authority at a pre-money valuation of $9.53B.

Tenex.AI, developer of an AI-enabled cybersecurity platform, raised $250.0M of Series B venture funding led by Crosspoint Capital Partners at a pre-money valuation of $750.0M.

Syneron, developer of peptide therapeutics, raised $150.0M of Series B venture funding from Lenovo Capital and Incubator Group, Lilly Asia Ventures, and AstraZeneca.

Saronic, manufacturer of unmanned surface vehicles, raised $1.75B of Series D venture funding led by Kleiner Perkins on a pre-money valuation of $7.5B.

QBoson, developer of quantum computing products, raised CNY 1.0B of Series B venture funding led by ICBC Financial Asset Investment, Addor Capital, and Beijing Financial Holdings Group.

KeyRock, developer of a digital asset trading platform, raised $100.0M of Series C venture funding led by SC Ventures at a pre-money valuation of $1.0B.

Decart, developer of an AI infrastructure platform, raised $100.0M of venture funding from Nvidia and Radical Ventures at a pre-money valuation of $4.4B.

Ambrosia Biosciences, operator of a metabolic disease biotech company, raised $100.0M of Series B venture funding led by Redmile Group, Deep Track Capital, and Blue Owl Capital.

9fin, developer of an AI powered data and analytics platform, raised $170.0M of Series C venture funding led by HarbourVest Partners at a pre-money valuation of $1.13B.

Calm, developer of sleep, meditation, and relaxation applications, raised $200.0M of Series D venture funding from undisclosed investors at a pre-money valuation of $1.8B.

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