Pantheon International PLC (LSE:PIN) (PIP) told investors it is raising US$150 million (£118 million) via a private placement of loan notes of different maturities to North American institutional investors.
As of yesterday, the private equity focused investment trust had £20 million of net available cash and drawings of £136 million under its existing £500 million loan facility.
As well as giving the company a more diverse supply of liquidity, the proceeds of the fundraise will be used to partially repay and convert these drawings into longer-term funding at a blended interest rate of 6.4945%, which is lower than the current all-in cost currently payable on the facility.
With maturities of five, seven and 10 years, the notes issued in the placing, which was said to be three times oversubscribed, had a weighted average maturity of 6.9 years.
PIP said it expects to finance its new investments and meet its unfunded commitments principally from the cash that continues to be generated by its portfolio and from short-term use of the loan facility.
Chair John Singer said the loan notes further optimise PIP's capital structure and provide “further underpinning of our investment reallocation strategy as we aim to capture value and improve returns for our shareholders over the long term”.