Logistics Development Group acquires interest in payment-in-kind loan

Investment company Logistics Development Group announced the acquisition of an economic interest in the payment-in-kind (PIK) loan facility it entered into as part of its December 2019 financing.

The AIM-traded firm said the interest was acquired through an equity investment in Alpha Persei, the company holding 100% of the PIK Loan.

As part of the December 2019 financing transaction, funds managed by DBAY Advisors agreed to provide the company with the opportunity to participate in an economic interest of up to 49% of the PIK loan.

Following the successful LDG fund raise in December 2020, the company decided to exercise its rights to acquire a portion of the PIK loan, and as such has acquired six million ordinary shares in Alpha Persei for consideration of £6m, giving it a 10.9% legal and beneficial interest in Alpha Persei.

“Accordingly, the company now has an indirect economic interest of £6m equivalent of the PIK loan through this ownership in Alpha,” the board said in its statement.

“This further aligns the economic interests of DBAY and the company's shareholders, allowing the company to participate in the interest accruing on the PIK loan.”

At 0905 BST, shares in Logistics Development Group were up 1.16% at 12.2p.