Market Overview

Triton Pacific and Prospect Capital Announce Agreement to Merge Triton Pacific Investment Corporation and Pathway Capital Opportunity Fund

Share:

LAGUNA NIGUEL, Calif., Aug. 14, 2018 (GLOBE NEWSWIRE) -- Triton Pacific Investment Corporation, Inc. ("TPIC") and Pathway Capital Opportunity Fund, Inc. ("PWAY") today announced that the companies have entered into a definitive merger agreement to create TP Flexible Income Fund, Inc. (the "Fund"). The Boards of Directors of both TPIC and PWAY have approved the transaction.  The transaction is subject to approval by TPIC and PWAY shareholders and other customary closing conditions. TPIC and PWAY expect to close the transaction in the fourth quarter of 2018.

Under the terms of the agreement, PWAY shareholders will receive a number of TPIC shares with a net asset value equal to the net asset value of the PWAY shares they hold, as determined shortly before closing.  The Fund will be a non-traded registered fund, structured as a business development company, and will be externally managed by Prospect Flexible Income Management, LLC (jointly owned by Prospect Capital Management L.P. and Triton Pacific).

The proposed merger is expected to provide a range of near-term and long-term benefits focused on driving shareholder returns through improved scale, an ability to leverage fixed costs, access to financing, and enhanced portfolio diversification.

The Fund's investments are expected to consist primarily of syndicated senior secured first lien loans, syndicated senior secured second lien loans, and to a lesser extent, subordinated debt, and up to 30% of its investments is expected to consist of other securities, including private equity (both common and preferred), dividend-paying equity, royalties, and the equity and junior debt tranches of pools of broadly syndicated loans known as collateralized loan obligations, or "CLOs".

Triton Pacific Securities, LLC, founded in 2005 and registered in all 52 states and territories, will continue to act as the dealer manager for the registered offering of the Fund's common shares upon consummation of the transaction.

Prospect Capital Management L.P. ("PCM") is an SEC-registered investment adviser that, along with its predecessors and affiliates, has a 30-year history of investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. PCM and its affiliates employ a team of approximately 100 professionals who focus on credit-oriented investments yielding attractive current income. PCM has $6.2 billion of assets under management as of March 31, 2018.

Triton Pacific Investment Corporation is a publicly registered non-traded business development company focused on both private equity and debt related investments. Triton Pacific Capital Partners, founded in 2001, is a Private Equity firm which has sponsored 50+ Private Equity partnerships totaling $1 billion in assets and offerings. Triton Pacific Capital Partners offers a unique investment approach for retail investors by providing access to income-producing Private Equity to both accredited and non-accredited investors.

Triton Pacific Securities, LLC
Brian Buehler
President & CEO
+1-949-429-8500

Primary Logo

View Comments and Join the Discussion!