PIP converts £123m debt into share capital

Pantheon International Participations Plc (PIP) has converted £123m debt held as participating loan notes into new redeemable and ordinary shares. The restructuring also involved a cancellation, to form a distributable reserve, of the share premium arising on conversion and a facility for future issues of up to an additional 80 million redeemable shares at net asset value per share at the time of issue without additional shareholder approval. It was undertaken to eliminate potentially adverse tax treatment for PIP of the participating loan notes and was designed to permit PIP flexibility in raising funds for investment when required and returning excess cash generated by its underlying investment portfolio. The redeemable shares are non-voting and participate equally with ordinary shares in dividends and surplus assets. In addition, they are redeemable at PIP's discretion at net asset value. Covington & Burling partners, Simon Currie and Simon Goodworth, advised PIP on the transaction.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland