July 1 – Pyne Gould Corp., which divested its Marac finance unit in the Heartland New Zealand Ltd. merger, wants to put up $14 million as part of a refinancing package for funds managed by its asset management unit.
PGC wants to take a stake in National Australia Bank’s $100 million loan facilities to Equity Partners Infrastructure Company No.1 Ltd. , a leveraged yield fund with water and motorway investments in Britain, the company said in a statement.
EPIC is managed by PGC’s Equity Partners Asset Management, a unit it bought for $18 million from cornerstone investor George Kerr.
PGC is proposing to take a share in NAB’s facility in place of EPIC’s obligation to make certain principal repayments on the loan, and will rank behind the Australian bank in the event of a default.
As a part owner of the facility, PGC would receive interest repayments on a pro-rata basis. Its shares dropped 2.5% to 39 cents in trading.
PGC chairman Bryan Mogridge said the move would help EPIC cut its debt and complete a restructure.
The restructure comes just three months after Kerr’s Torchlight Fund No. 1 LP injected $12 million through a subordinated convertible note in EPIC to pay for the fund to maintain its stake in the motorway assets.
Earlier this month, EPIC chairman Margaret Devlin told shareholders the fund’s manager is assessing the sale of its water assets. It is also evaluating an offer for its motorway investment and said shareholders indicated they wanted to exit that asset.
As a deal with related parties, the proposal needs a waiver from NZX listing rules.
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