Ninepoint Partners, an alternative investment manager, and Third Eye Capital (TEC), whose affiliate, Third Eye Capital Management, is sub-advisor of the Ninepoint-TEC Private Credit Fund and the Ninepoint-TEC Private Credit Fund II, and Pieridae Energy refinanced a senior secured non-revolving term loan facility. In conjunction with the refinancing, Pieridae will enter a new loan with Prudential Private Capital, the private capital arm of PGIM, the global investment management business of Prudential Financial and Voya Investment Management, which manages approximately $323 billion as of March 31, 2023.
Pieridae will use proceeds from the refinancing to fully repay the current outstanding debt of $185 million to funds managed, sub-advised or operated by affiliates of Third Eye Capital. The term loan was originally provided to Pieridae in October 2019 and has produced a double-digit internal rate of return for the funds.
Through this repayment, the Ninepoint-TEC Private Credit Fund and Ninepoint-TEC Private Credit Fund II will receive its respective pro-rata share of collectively $123 million. The repayment to both funds will be made upon closing of the refinancing transaction and will provide liquidity to service cash requirements.
“The transaction is a prime example of the pivotal role private credit plays in the Canadian economy by helping to support and grow successful businesses that typically don’t have access to traditional lenders, like the Canadian banks,” Ramesh Kashyap, managing director and head of Ninepoint’s alternative income group, said. “By focusing on senior secured loans positioned at the top of the capital structure, the Ninepoint-TEC Private Credit strategy has been able to deliver healthy, risk-adjusted returns to our investors all the while helping companies like Pieridae strategically support and scale their businesses.”
“The refinancing of Pieridae’s debt today is further evidence of the high-quality investments that Third Eye Capital makes, which may be overlooked or underappreciated by others. It not only demonstrates our ability to identify hidden gems and capitalize on market inefficiencies, but also shows how our private credit strategy empowers our borrowers and their own employees, stakeholders, and local economies,” Arif Bhalwani, CEO at Third Eye Capital, said.
