Mount Logan Capital Inc. Announces Continued Partnership with Specialized Credit Manager. Separately Announces Closing of Debenture Units Offering
2024年1月29日 - 9:00PM
Mount Logan Capital Inc. (NEO: MLC) (“Mount Logan,” “our,” “we,” or
the “Company”) is pleased to announce the appointment of Mount
Logan’s CEO, Ted Goldthorpe, to Marret’s Board of Directors during
January 2024. Marret is a prominent Canadian asset manager
specializing in global fixed-income investing and alternative
strategies on behalf of institutional, high net worth and retail
clients. Marret advises total assets of approximately C$5 billion.
In June 2023, Mount Logan purchased a strategic minority stake in
Marret from certain minority shareholders.
Separately, Mount Logan today announced the
closing of an opportunistic $18.8 million privately placed
debenture units offering through the issuance of 18,752 debenture
units (“Debenture Units”) on a non-brokered private placement basis
(the “Offering”). Each Debenture Unit consists of: (i) one 8.85%
paid-in-kind unsecured debenture of the Company in the principal
amount of $1,000, and (ii) 50 common share purchase warrants of the
Company, each of which is exercisable to acquire one common share
of Mount Logan at a price of C$2.75 per share. The net proceeds
from the Offering will be used for general corporate purposes
including the complete refinancing of $13.6 million of existing
indebtedness at Lind Bridge, a wholly-owned subsidiary of Mount
Logan, with the balance being used for general corporate purposes,
including supporting Mount Logan’s working capital position,
enabling Mount Logan to focus on its growth initiatives through
2024 and beyond.
Key Commentary
- Mount Logan acquired a
minority stake in Marret in June 2023 from a group of minority
shareholders. There have been no changes following the
close of the acquisition to the management team, day-to-day
operations, or majority ownership structure. Marret remains
majority owned by CI Financial Corp (“CI Financial”), a publicly
listed diversified global asset and wealth management company.
- Since Mount Logan’s
investment, Marret and Mount Logan have each benefited from access
to broader credit investing skillsets. Ted Goldthorpe
appointed to the Marret Board of Directors in January 2024
following the collaboration among the respective teams throughout
2023.
- Mount Logan looks forward
to working closely with Marret’s best-in-class management team and
majority shareholder, CI Financial, to capitalize on the
opportunities available in the North American credit
markets.
- Mount Logan maintains two
minority investments in Canadian credit managers through
its July 2021 investment in Crown Private Credit Partners Inc., a
Canadian alternative corporate financing business, and the June
2023 minority stake purchase of Marret herein referenced. Mount
Logan views each business as highly complementary to its core asset
management offering.
- Additionally, the $18.8
million capital raise and opportunistic refinancing represents an
important milestone for the business as it simplifies Mount Logan’s
capital structure at an attractive fixed-rate over the next 8
years. $13.6 million of the net proceeds of the Offering
will refinance existing indebtedness at Lind Bridge, a wholly owned
subsidiary of Mount Logan. Following completion of the Offering and
refinancing, Mount Logan will have no outstanding indebtedness at
Lind Bridge, which existing indebtedness had previously been raised
to support direct growth investment into Ability Insurance Company,
Mount Logan’s wholly-owned insurance company. The refinancing has
no impact on previous investments in Ability or Ability's
risk-based capital ratios (“RBC”). The balance of the proceeds of
the Offering after refinancing existing indebtedness will be used
for general corporate purposes, primarily supporting the Company’s
working capital position, and paying related transaction fees and
expenses.
- The Offering mentioned
herein has no relation to the Marret minority stake purchase nor
Ted Goldthorpe’s appointment to Marret’s board of directors and
each of these events are separate and distinct.
Opportunistic Refinancing
DetailsMount Logan raised $18.8 million in aggregate
principal amount of debentures. Each Debenture Unit was issued at a
price of US$1,000 and consisted of: (a) one 8.85% unsecured
debenture of the Corporation having a principal amount of US$1,000
(a “Debenture”); and (b) 50 common share purchase warrants
(“Warrants”). Each Debenture matures eight (8) years following the
closing of the Offering (the “Maturity Date”) and bears interest at
a rate of 8.85% per annum from the date of issue, accruing
quarterly and compounded annually and payable on the Maturity Date.
Each Warrant is exercisable into one common share of the Company at
a price of C$2.75 per share until January 25, 2032, provided that
the Warrants are not exercisable prior January 25, 2025.
Management Commentary
-
Ted Goldthorpe, Chief Executive Officer and Chairman of
Mount Logan, said, “A lot of strong momentum to start 2024
for Mount Logan. I am grateful and excited for the opportunity to
join the Marret board and help drive value for Marret stakeholders.
Separately, we are pleased to complete the $18.8 million debenture
units offering, which fully refinances our Lind Bridge indebtedness
at an attractive fixed rate with an 8-year tenor. The debenture
unit offering positions us well to focus on high-priority
opportunities for the business across the asset management and
insurance solutions landscape.”
- Roberto Katigbak, Chief Executive Officer at Marret
said, “We are extremely excited by the investment Mount
Logan has made into Marret. Mount Logan shares our philosophy of
delivering strong risk adjusted returns, and this partnership can
create tremendous value for our clients. We view our individual
strengths in both private credit and in liquid public fixed income
markets to be highly complementary. We look forward to working
closely with Mount Logan to expand our businesses while providing
truly unique solutions for investors to navigate challenging
markets.”
-
Darie Urbanky, Chief Operating Officer and President of CI
Financial added, “CI Financial is excited about Mount
Logan’s investment into Marret and Ted’s increased role through his
appointment to Marret’s board of directors. We see ample
opportunities to grow Marret in the current market and believe
Mount Logan’s experience and additional credit capabilities will
further reinforce Marret as a best-in-class credit manager.”
About Mount Logan Capital
Inc.
Mount Logan Capital Inc. is an alternative asset
management and insurance solutions company that is focused on
public and private debt securities in the North American market and
the reinsurance of annuity products primarily through its wholly
owned subsidiaries Mount Logan Management LLC and Ability Insurance
Company. The Company also actively sources, evaluates, underwrites,
manages, monitors and primarily invests in loans, debt securities,
and other credit-oriented instruments that present attractive
risk-adjusted returns and present low risk of principal impairment
through the credit cycle.
Ability is a Nebraska domiciled insurer and reinsurer of
long-term care policies and annuity products acquired by Mount
Logan in the fourth quarter of fiscal year 2021. Ability is unique
in the insurance industry in that its long-term care portfolio’s
morbidity risk has been largely reinsured to third-parties. Ability
is also no longer insuring new long-term care risk and will
continue to expand and diversify its business including through the
reinsurance of annuity products which commenced in the second
quarter of fiscal 2022.
About Marret Asset
Management
Marret Asset Management Inc. is a specialist
fixed-income manager. With mandates in investment grade credit,
short-term cash alternatives, high yield and opportunistic
distressed securities, Marret’s focus is on achieving positive
absolute returns with emphasis on risk management.
Cautionary Statement Regarding
Forward-Looking Statements
This press release contains forward-looking
statements and information within the meaning of applicable
securities legislation. Forward-looking statements can be
identified by the expressions "seeks", "expects", "believes",
"estimates", "will", "target" and similar expressions. The
forward-looking statements are not historical facts but reflect the
current expectations of the Company regarding future results or
events and are based on information currently available to it.
Certain material factors and assumptions were applied in providing
these forward-looking statements. The forward-looking statements
discussed in this release include, but are not limited to,
statements relating to the Company’s business strategy, model,
approach and future activities; portfolio composition, size and
performance, asset management activities and related income,
capital raising activities, future credit opportunities of the
Company, portfolio realizations, the protection of stakeholder
value, the expansion of the Company’s loan portfolio, including
through its investment in Marret, synergies to be achieved by both
the Company and Marret through their partnership and relationship
with CI Financial, any future growth and expansion of each of both
the Company and Marret, any change in earnings potential for the
Company as a result of any growth of Marret, future fundraising
activities of Marret; the business and future activities and
prospects of Marret and the Company and the use of proceeds of the
Offering. All forward-looking statements in this press release are
qualified by these cautionary statements. The Company believes that
the expectations reflected in forward-looking statements are based
upon reasonable assumptions; however, the Company can give no
assurance that the actual results or developments will be realized
by certain specified dates or at all. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from
current expectations, including that the expected synergies of the
investment in Marret may not be realized as expected; the risk that
each of the Company and Marret may require a significant investment
of capital and other resources in order to expand and grow their
respective businesses; the Company has a limited operating history
with respect to an asset management oriented business model and the
matters discussed under "Risk Factors" in the most recently filed
annual information form and management discussion and analysis for
the Company. Readers, therefore, should not place undue reliance on
any such forward-looking statements. Further, a forward-looking
statement speaks only as of the date on which such statement is
made. The Company undertakes no obligation to publicly update any
such statement or to reflect new information or the occurrence of
future events or circumstances except as required by securities
laws. These forward-looking statements are made as of the date of
this press release.
This press release is not, and under no
circumstances is it to be construed as, a prospectus or an
advertisement and the communication of this release is not, and
under no circumstances is it to be construed as, an offer to sell
or an offer to purchase any securities in the Company or in any
fund or other investment vehicle. This press release is not
intended for U.S. persons. The Company’s shares are not registered
under the U.S. Securities Act of 1933, as amended, and the Company
is not registered under the U.S. Investment Company Act of 1940
(the “1940 Act”). U.S. persons are not permitted to purchase the
Company’s shares absent an applicable exemption from registration
under each of these Acts. In addition, the number of investors in
the United States, or which are U.S. persons or purchasing for the
account or benefit of U.S. persons, will be limited to such number
as is required to comply with an available exemption from the
registration requirements of the 1940 Act.
Contacts:Mount Logan Capital
Inc.365 Bay Street, Suite 800Toronto, ON M5H 2V1
Jason RoosChief Financial
OfficerJason.Roos@mountlogancapital.ca
Mount Logan Capital (NEO:MLC)
過去 株価チャート
から 11 2024 まで 12 2024
Mount Logan Capital (NEO:MLC)
過去 株価チャート
から 12 2023 まで 12 2024