PAC secures $33m in insto capital

Pacific Current Group (PAC) successfully completed an institutional placement of $33 million partly to repay debts stemming from the acquisition of a US boutique.

The placement, which was fully underwritten by Ord Minnett, comprised approximately $12 million to cover costs associated with the purchase of California-based Aperio Group; $10 million to meet various other liabilities; and $8 million for general working capital and to meet the costs of the placement itself.

PAC will issue 5,840,708 new shares at $5.65 per share on June 21. PAC chair Mike Fitzpatrick said he was "delighted by the exceptional support shown by both existing and new institutional investors."

"The oversubscribed institutional placement allowed the offer size to be increased to $33 million, further strengthening Pacific Current's balance sheet," Fitzpatrick said.

PAC has raised further capital over the past year by selling off several smaller boutiques, including Aubrey Capital Management to Treetop Asset Management S.A. in December.

The group also held an extraordinary general meeting in March to implement a major restructure of its business to resolve issues arising from the merger of operations between Treasury Group and Northern Lights Capital group under the then-jointly-controlled Aurora Trust.

PAC's goal was to secure full control of the Aurora Trust by giving holders of Class B and B-1 units the opportunity to exchange for PAC ordinary shares, and amending the trust's Redeemable Class X Preference Units (XRPUs) so that redemption price is fixed at US$21 million and units would be redeemed on or before 31 March 2018.

Shareholders voted overwhelmingly in favour of PAC's resolutions.

Read more: PACUSPacific Current GroupAurora TrustMike FitzpatrickAubrey Capital ManagementCalifornia-based Aperio GroupNorthern Lights CapitalOrd MinnettTreasury GroupTreetop Asset Management S.A.
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