Metrics trust acquires 100% of BC Investment Group

The Metrics Income Opportunities Trust has moved to fully acquire another non-bank lender, BC Investment Group in a transaction valued at $140.3 million,

The Metrics Income Opportunities Trust is a structure put in place by Metrics Credit Partners and Perpetual Limited via its Trust Company.

An announcement to the Australian Securities Exchange (ASX) said the Metrics Opportunities Trust has a 15.8%% indirect holding in BC Investment Group had moved to lift its stake in BCI from 29.8% to 100%.

It noted that BCI has total loans under management in excess of $6.5 billion, predominantly held in Australian residential mortgages.

The announcement said the Metrics Capital Credit Trust is able to fund the acquisition from currently available capital.

“The BCI acquisition will provide the Credit Trust and MOT (indirectly) with increased exposure to a financial services business that Metrics considers to be of high quality and expected to have strong growth prospects,” it said.

The terms of the acquisition include an initial purchase price to acquire the balance of the shares not already held by the Credit Trust of $140.3 million and the possibility of a deferred consideration of up to $6.9 million.

The terms also involve the purchaser refinancing the shareholder loans currently provided by FEC to BCI, which support BCI’s investment in its loan portfolio.