Business
Canaccord Genuity Group Inc. Announces Completion of Investment by HPS in its UK Wealth Management Business and Repayment of Loan Facility
Canaccord Genuity Group Inc. Announces Completion of Investment by HPS in its UK Wealth M...
About this update from Canaccord Genuity Group Inc.
[{"type":"text","content":"\n \n \n \n Canaccord Genuity Group Inc. Announces Completion of Investment by HPS in its UK Wealth Management Business and Repayment of Loan Facility\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n TORONTO and\n \n LONDON\n \n ,\n \n July 29, 2021\n \n /CNW/ - Canaccord Genuity Group Inc. (TSX: CF), (the \"Company\") announces the completion of the previously announced investment in the Company's UK wealth management division by investment accounts and funds managed by HPS Investment Partners, LLC (collectively, \"HPS\").\n \n \n HPS has acquired convertible preferred shares (the \"Convertible Preferred Shares\") in the amount of £125 million (\n \n C$218 million\n \n ) issued by Canaccord Genuity Wealth Group Holdings (Jersey) Limited (\"CGWM UK\"), the parent company of the Company's wealth management operating subsidiaries in the UK and the Crown Dependencies (the \"Transaction\"). On an as converted basis, the Convertible Preferred Shares represent an approximate 22% equity interest in CGWM UK. Further information in respect of the terms of the Convertible Preferred Shares is provided in the Company's Q3 fiscal 2021 unaudited interim condensed consolidated financial statements and in the Company's MD&A for the periods ended\n \n December 31, 2020\n \n and\n \n March 31, 2021\n \n .\n \n \n Pursuant to the terms of the loan provided by HPS on\n \n April 18, 2021\n \n , the Company entered into a credit agreement with lenders, Lucid Agency Services Limited as administrative agent and Lucid Trustee Services Limited as security agent, for a senior secured first lien term loan facility in an aggregate principal amount of £69 million (\n \n C$120 million\n \n ). This loan has been repaid from the proceeds of the Transaction.\n \n \n In connection with the Transaction, CGWM UK has provided for the purchase by management of certain equity instruments in CGWM UK within the context of the Transaction value and which is expected to reflect an approximate 4% equity-equivalent interest in CGWM UK. &...