Investing

Bain Capital Credit Takes Large Activist Position in RDW / Redwire

Fintel reports that Bain Capital Credit Member has filed a 13D form with the SEC disclosing ownership of 16,393,442 shares of Redwire Corporation (RDW). This represents 20.4% of the company.

In their 13D filing, Bain Capital states the following regarding the transaction:

Pursuant to the terms of the Investment Agreement, on November 3, 2022 (the “Closing Date”), the Issuer issued, sold and delivered to BCCR 40,000 shares of Convertible Preferred Stock for $1,000 per share and an aggregate purchase price of $40,000,000 (the “Closing”). On November 3, 2022, pursuant to a transfer agreement (the “Transfer Agreement”) among BCCR, AE Industrial Partners, Fund II LP, a Delaware limited partnership (“AE Fund II LP”), AE Industrial Partners Structured Solutions I, LP, a Delaware limited partnership (“AE Solutions I” and, together with AE Fund II LP, the “AE Sellers”) and the Issuer, BCCR also purchased 10,000 shares of Convertible Preferred Stock for $1,000 per share and an aggregate purchase price of $10,000,000 from the AE Sellers.. The AE Sellers are affiliated with AE Red Holdings, LLC. The AE Sellers purchased 40,000 shares of Convertible Preferred Stock from the Issuer on October 28, 2022, subject to an obligation to sell 10,000 of such shares to BCCR for $1,000 per share pursuant to the Transfer Agreement.

Bain Capital also supplied this regarding their intentions:

[Bain Capital] acquired the securities reported herein for investment purposes. In their capacity as significant stockholders of the Issuer with the right to representation on the board of directors of the Issuer (the “Board”), the Reporting Persons intend to take an active role in working with the Issuer’s management and the Board on operational, financial and strategic initiatives. The Reporting Persons will review, on an ongoing and continuing basis, their investment in the Issuer. 

What are other large shareholders doing?

BlackRock Inc. holds 1,119,699 shares representing 1.77% ownership of the company. In it’s prior filing, the firm reported owning 218,009 shares, representing an increase of 80.53%. The firm increased its portfolio allocation in RDW by 119.22% over the last quarter.

Vanguard Group Inc holds 884,187 shares representing 1.40% ownership of the company. In it’s prior filing, the firm reported owning 503,468 shares, representing an increase of 43.06%. The firm decreased its portfolio allocation in RDW by 25.22% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 554,400 shares representing 0.88% ownership of the company. In it’s prior filing, the firm reported owning 252,516 shares, representing an increase of 54.45%. The firm decreased its portfolio allocation in RDW by 6.76% over the last quarter.

King Luther Capital Management Corp holds 500,000 shares representing 0.79% ownership of the company. No change in the last quarter.

Towerview Llc holds 475,345 shares representing 0.75% ownership of the company. No change in the last quarter.

What is the overall institutional sentiment?

There are 138 funds or institutions reporting positions in Redwire Corporation. This is an increase of 72 owner(s) or 109.09%.

Average portfolio weight of all funds dedicated to Redwire Corporation is 0.0128%, a decrease of 63.4774%. Total shares owned by institutions increased in the last three months by 29.99% to 6,735,428 shares.

This article originally appeared on Fintel

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