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  • Financial services provider Pioneer Credit (PNC) is exploring new financing options amid a legal dispute with The Carlyle Group
  • Earlier this year, the two companies entered a legal dispute, after Carlyle Group alleged that Pioneer breached two agreements
  • Since then, the agreement has been terminated, and Pioneer is now seeking refinancing options through its advisory company Azure Capital
  • Although negotiations are ongoing, Pioneer cannot guarantee that a suitable refinancing arrangement can be met
  • Pioneer Credit is trading 3.17 per cent higher today, with shares selling for 32.5 cents each

Financial services provider Pioneer Credit (PNC) is exploring new financing options amid a legal dispute with The Carlyle Group.

Last year Pioneer signed an agreement through which Robin Bidco and Robin HoldCo, part of The Carlyle Group, would acquire all of Pioneer’s shares through a scheme implementation agreement.

The Carlyle Group would also assume all of Pioneer’s debt through a syndicated facility agreement. However, since then, both agreements have been challenged.

Earlier this year, the two companies entered a legal dispute after Carlyle Group alleged that Pioneer defaulted on the syndicated facility agreement. Later that month, Carlyle Group further alleged that Pioneer breached the scheme implementation agreement.

Since then, the scheme implementation agreement has been terminated, and Pioneer is now seeking to refinance and exploring other strategic options through its advisory company, Azure Capital.

Pioneer stated its main aim is to refinance its debt with The Carlyle Group and negotiations are ongoing. However, talks remain in the early stages, and Pioneer does not guarantee that the debt will be successful refinanced.

Turning to the pandemic, Pioneer says its customers have been struggling under the recent economic uncertainty. Consequently, Pioneer has implemented a number of relief schemes, which include payment ‘holidays’ and reductions, interest rate deferrals and debt waivers.

Pioneer’s contract with a supplier to the State Government of Western Australia has provided secure cash-flow during the last few months. However, this contract will expire on May 17 and the company’s staff will return back to normal operations.

The company’s team in the Philippines remain in lockdown and are operating at reduced staffing levels. With COVID-19 restrictions easing in Western Australia, much of the Philippines-based work is being transferred to the company’s Australian office.

Pioneer Credit is trading 3.17 per cent higher today, with shares selling for 32.5 cents each at 11:17 am AEST.

PNC by the numbers
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