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- Real estate developer The Agency Group (AU1) has received a $1 million investment from Peters Investments, through a convertible note subscription
- The notes include two million options exercisable at four cents — a 20 per cent discount to The Agency’s average trading price over the last 15 days
- The funds will be allocated to a standby working capital facility, which is required as part of The Agency’s debt repayment extension agreement with Macquarie Bank
- Through the convertible note subscription, Peters Investments also retains first right of refusal to replace Macquarie Bank as The Agency’s credit facility, if the situation arises
- The Agency Group is steady on the market, trading for 4 cents per share
Real estate developer The Agency Group (AU1) has received a $1 million investment from Peters Investments, through a convertible note subscription.
The Agency’s newly appointed corporate advisor, Canaccord Genuity, arranged the agreement with Peters Investments.
The notes include two million options exercisable at four cents — a 20 per cent discount to the Agency’s average trading price over the last 15 days.
Peters Investments is a private investment company owned by Bob Peters, the notable Australian horse breeder.
The funds will be allocated to a standby working capital facility, which is required as part of The Agency’s debt repayment extension agreement with Macquarie Bank.
The investment has an interest rate of nine per cent and will be repaid in cash by the end of the year or when the debt with Macquarie Bank has been fully repaid.
The company announced the extension agreement with Macquarie Bank earlier this month. Through the agreement, The Agency negotiated a new loan-to-value ratio, which reflects the onset of the COVID-19 pandemic and its accompanying economic downturn.
Through the investment, Peter Investments also retains first right of refusal to replace Macquarie Bank as The Agency’s credit facility, if the situation arises.
The Agency Group’s Managing Director, Paul Niardone is pleased to have secured the investment.
“To have secured the support of Mr Peters, via his investment vehicle Peters Investments, together with our recent debt repayment extension, ensures The Agency has the financial support to continue its growth plans,” Paul explained.
“Importantly, Peters Investments requested, and we were happy to grant, a first right of refusal to replace the Macquarie Bank loan on terms and conditions to be reasonably agreed between the parties,” he said.
The Agency Group is steady on the market, trading for 4 cents per share.
