Wellington-founded global financial technology group, FNZ, has restructured its debt load into a US$2.1 billion term loan, extending the previous lending maturity dates out by five to six years to November 2031.
The debt financing deal completed last week has seen the business roll-up an approximately US$1.8 billion term loan and US$330 million revolving credit facility (RCF) – initially due for repayment in 2026 and 2025, respectively – into the new structure.
Under the updated arrangement, FNZ has also secured a new US$300 million RCF. According to the FNZ 2023 accounts, the group locked in a US$319 million interest-bearing loan from shareholders due to be repaid in 2031.
According to a FNZ statement issued last week: “The refinancing replaces FNZ’s previous debt structure, providing greater balance sheet flexibility, strengthening its foundations to execute strategic goals, and reduces any near-term refinancing risk.”
In August this year, the global investment platform player revealed its institutional shareholders would inject a further US$1 billion of capital into the business amid a leadership shake-up that saw founder and chief, Adrian Durham, step back to special advisory and director roles.
Durham was replaced as chief by Blythe Masters, founding partner of US private equity firm and FNZ shareholder, Motive Partners. Along with Motive, other FNZ owners include two Canadian pension plans – CDPQ and CPP Investments – as well as Singapore wealth fund, Temasek, the Al Gore-founded Generation Investments and US private equity outfit, Summit Partners.
Following its incubation inside the-then First NZ Capital (now Jarden) wealth management office in Wellington in 2003, FNZ has seen exponential growth in the UK, Europe, Asia and, more recently, Australia and the US.
The company has also been on a buying spree since 2018, snapping up half-a-dozen or so adjacent technology and financial firms across Europe and the US.
Despite reporting significant losses over the last couple of financial year including a US$555 million deficit in 2023, Durham said in the latest annual report that “the group was on track to break-even on a go-forwards basis during 2025”.
A FNZ spokesperson said in the release: “We are pleased to have secured this refinancing, which positions FNZ strongly for the future. We remain focused on delivering first-class service to our customers while executing on our long-term strategic priorities.”
The global group is now domiciled in NZ after a brief sojourn in Jersey and a longer stint on the UK companies register.