News Spotlight: Capitol Investment Corp. IV (NYSE:CIC)

Capitol Investment Corp. IV (NYSE:CIC) spotted trading -0.49% off 52-week high price. On the other end, the stock has been noted 5.49% away from the low price over the last 52-weeks. The stock changed 0.20% to recent value of $10.18. The stock transacted 60424 shares during most recent day however it has an average volume of 119.7K shares. The company has 1.85M of outstanding shares.  

Capitol Investment Corp. IV (NYSE: CIC), a public investment vehicle, and Nesco Holdings I (“Nesco”), a leading provider of specialty rental equipment to the electric utility, telecom and rail end-markets, announced that they have entered into a definitive agreement in which Nesco will become a publicly listed company with an anticipated initial enterprise value of approximately $1.1 billion.  Nesco is currently a portfolio company of Energy Capital Partners (“ECP”).

Nesco offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade and installation of critical infrastructure assets including electric lines, telecommunications networks and rail systems.  With a nationwide rental fleet of approximately 4,000 units, Nesco provides its customers a vast and comprehensive product offering along with an unrelenting focus on service.  As a one-stop shop, Nesco also offers its customers the parts, tools and accessories needed to fully equip their crews for activity in the field.  Nesco’s long-lived equipment assets offer highly attractive economic returns and the company has demonstrated strong financial performance with an Adjusted EBITDA margin of 49% in 2018 and a 24% compound annual growth rate of Adjusted EBITDA over the past two years.

Capitol is the fourth public investment vehicle of Chairman and CEO Mark Ein and President and CFO Dyson Dryden, following three prior successful transactions.  The Capitol team has the best track record of public investment vehicle sponsors, with all three of its prior investments consistently beating the broader markets with an average annualized return of 17%1.

“We work hard to set ourselves apart from other investment vehicles by scouring the world for outstanding companies  where our team, and our capital, can be a catalyst to accelerate growth and then we actively engage with the businesses post-merger to help execute the business plan and create substantial long-term shareholder value.  Nesco perfectly fits our model as it is uniquely positioned to benefit from the increased demand for its equipment as the result of the significant, consistent growth in infrastructure spending in each of its core end-markets – electric utility transmission and distribution, 5G deployment and rail development,” said Mark Ein, Chairman and CEO of Capitol.  “With the substantial end-market demand, attractive unit economics, capital from this transaction, a world class board and an experienced team all coming together, we believe the combined company will deliver superior returns for investors long into the future.”   The price moved ahead of 0.27% from the mean of 20 days, 0.75% from mean of 50 days SMA and performed 2.89% from mean of 200 days price. Company’s performance for the week was 0.00%, 0.10% for month and YTD performance remained 1.85%.

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