15 Jun Third Eye Capital exits loan in Pieridae Energy with significant returns; retains stock and senior loan at parent company
TORONTO, June 15, 2023 /CNW/
Third Eye Capital Corporation (“Third Eye Capital”), Canada’s leading provider of asset-based financing solutions to companies that are underserved or overlooked by traditional sources of capital, confirmed today that it has substantially exited its investment in Pieridae Energy Limited. (TSX: PEA). Through Erikson National Energy (“Erikson”), a special purpose entity, Third Eye Capital made a net loan of $200 Million to a subsidiary of Pieridae Energy in October 2019, which was repaid primarily through financing from Prudential Private Capital and Voya Investment Management. Through to today, Erikson has received over $370 Million in cash payments comprising principal, interest, and fees. Erickson will retain a $20 Million short-term, senior secured loan at Pieridae Energy,, and currently owns an approximately 15% stake in the common stock of Pieridae Energy.
Mark Horrox, Principal at Third Eye Capital commented: “We backed Pieridae Energy to complete a transformational acquisition at a time when capital allocation to Canadian oil and natural gas businesses was scarce. Our analysis proved correct and Pieridae has successfully positioned itself as an environmentally conscious market leader in Alberta’s Foothills region, delivering substantial benefits to our investors. We are excited to continue our support for Pieridae’s growth journey.”
Arif Bhalwani, CEO at Third Eye Capital highlighted his firm’s investment approach: “This is another example of how Third Eye Capital can unlock value for asset-rich companies, even when their assets are out of favour or too complex for mainstream lenders. At a time when uncertainty reigns, we can provide critical financing and strategic guidance to help companies solve problems.”
About Third Eye Capital
Founded in 2005, Third Eye Capital is Canada’s leading provider of asset-based financing solutions to companies that are underserved or overlooked by traditional sources of capital. With a proven track record of nearly $5 billion in lending commitments across more than 125 portfolio investments, Third Eye Capital is one of the most experienced private debt firms in Canada. From navigating through periods of extreme distress to embracing moments of extraordinary change, Third Eye Capital excels at executing opportunities that other lenders simply cannot or will not pursue. Third Eye Capital actively engages with a company’s key assets to bridge the gap between their perceived value and actual worth, and provides access to capital and expertise that enables portfolio companies to flourish.