Pioneer raises $20m as Banksia sells out

Financial services provider Pioneer Credit has raised $20 million from investors to fund the purchase of a $14 million debt portfolio, with long-term shareholder Banksia Capital selling its 9.75 per cent stake at the same time.

Pioneer managing director Keith John said Banksia held a total of 4.8 million shares in the company, and had been advised by Banksia's share sale manager Bell Potter Securities that the entire stake was crossed to several existing institutional investors and one new investor.

"Banksia invested in the company in 2009 as a private equity investor and provided substantial support to us through to our listing in 2014," he said.

"Since then, we have enjoyed a positive relationship with Banksia as a major shareholder, though we understand that as their funds are closed end they need to realise their investments in time."

Pioneer today completed a $15 million placement, priced at $2 per share, and would raise a further $5 million by way of a one-for-20 rights issue at the same price.

The price represents a 4.7 per cent discount to the company’s 20-day volume-weighted average price.

Pioneer will use $14 million of the raising to acquire the purchased debt portfolio, which has a face value of $94 million, from an unnamed ASX 200 company.

Remaining proceeds will be used to fund other portfolio acquisitions.

“Pioneer was the successful bidder in the recent competitive tender process for this PDP because our differentiated model of helping the customer is both beneficial to them and the vendor,” Mr John said.

“This acquisition sits well with Pioneer’s strategic objectives at a price point consistent with other investments we have made.

“We expect to deliver strong financial returns.”

Pioneer also announced today that it had entered into a binding term sheet to initiate a strategic partnership with Rewardle Holdings, which offers its digital customer loyalty and rewards platform.

In a statement, Pioneers said the partnership would broaden its customer reach and fast track its expansion and diversification of its financial product offering.

Pioneer shares were 0.4 per cent higher to $2.12 each at 11:30am.