PGC cleared to buy Epic debt
Pyne Gould Corporation has secured a stock exchange waiver to forego shareholder approval to acquire bank debt owed by its Epic infrastructure fund to assist a sell down of its assets.
Pyne Gould Corporation has secured a stock exchange waiver to forego shareholder approval to acquire bank debt owed by its Epic infrastructure fund to assist a sell down of its assets.
EPIC is managed by PGC’s Equity Partners Asset Management, after buying it from cornerstone investor George Kerr for $18 million in 2009, and holds 11.06% of the fund.
George Kerr’s Torchlight Fund No.1 LP holds 5.32% of the shares in Epic and option to acquire further shares that could take its holding to 19.99%.Epic has decided to sell investments including stakes in British utility Thames Water and roadside service company Moto, which stopped paying dividends last year.
PGC said it has reached agreement to acquire NAB’s $14 million first ranking loan facility and would make payment in two parts with a first tranche of $7.5 million paid today.
Due to the related party nature of the deal and because the sum is more than 10% of PGC’s average market capitalisation the company would have needed shareholders need to approve the second tranche of $6.5 million.
PGC chair Bryan Mogridge said the waiver was an important step. He said the deal “provides a favourable return to PGC investors in participating in a strong first registered security position over Epic.
If it doesn’t make the second tranche, Epic may end up in breach of its facility.
Duncan Bridgeman
Mon, 11 Jul 2011
Mon, 11 Jul 2011
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PGC cleared to buy Epic debt
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