Pacific Current Group has committed a US$25.1 million senior secured loan facility to its portfolio company IFP Group, aiming to refinance debt and fuel strategic acquisitions over the next three years.
- US$25.1 million senior secured loan facility to IFP Group
- Facility supports debt refinancing and growth acquisitions
- Four-year bullet maturity with 10% base interest rate
- Loan secured by first-ranking charge over borrower assets
- Drawn progressively over 36 months, subject to lender approval
Pacific Current’s Strategic Financing Move
Pacific Current Group Limited (ASX:PAC), a global multi-boutique asset manager, has announced a significant financing arrangement with one of its portfolio companies, IFP Group, LLC. The agreement involves a US$25.1 million senior secured loan facility designed to refinance existing debt and provide capital for growth initiatives, including acquisitions of advisor books and transition packages.
This facility underscores Pacific Current’s dual strategy of supporting portfolio company expansion while securing a senior credit position that complements its equity investments. The loan’s structure is tailored to balance risk and growth, featuring a four-year bullet maturity and a base interest rate of 10% per annum, with pricing linked to leverage.
Facility Terms and Growth Implications
The loan is secured by a first-ranking charge over all of IFP’s assets, providing Pacific Current with a strong protective position. Importantly, the facility will not be drawn in full immediately but progressively over a 36-month period, allowing for transaction-by-transaction deployment aligned with IFP’s acquisition strategy and growth plans.
Michael Clarke, Managing Director of Pacific Current, highlighted the transaction as a demonstration of the firm’s ability to back portfolio growth while maintaining an attractive credit position. The facility’s use-of-proceeds controls and lender approval requirements ensure disciplined capital deployment, which is critical in the current competitive asset management landscape.
Looking Ahead
Completion of the facility remains subject to customary conditions precedent, confirmatory due diligence, and final documentation, with financial close expected shortly. This step marks a pivotal moment for both Pacific Current and IFP, as the latter embarks on an accelerated growth trajectory supported by this tailored financing solution.
For Pacific Current, this move reinforces its commitment to leveraging strategic capital and operational expertise to enhance shareholder value and strengthen its portfolio’s competitive positioning globally.
Bottom Line?
Pacific Current’s loan to IFP sets the stage for growth but hinges on successful execution and disciplined capital use.
Questions in the middle?
- How will IFP’s acquisitions funded by this facility impact its long-term profitability?
- What are the specific leverage thresholds that influence the loan’s pricing?
- Could Pacific Current extend similar financing to other portfolio companies in the near term?