Yorkville Advisors, a US based investment manager to a family of funds, has invested USD15m into United Fiber System through the subscription of a series B equity line backed loan note.
The investment was sourced out of Hong Kong and made by YA Global Master SPV, a Yorkville affiliated fund.
Yorkville also entered into an agreement with Unifiber in August 2009 to extend the SGD165m equity line of credit facility between Unifiber and YA Global Investments, another Yorkville affiliated entity, to 2014. The equity line was first entered into by the parties in 2004 for SGD40m and subsequently expanded in 2005 to SGD165m. Since entering into the Equity Line, Unifiber has drawn down approximately SGD90m from the facility.
Unifiber, a Singapore Exchange Main Board listed company with two lines of business, forestry and pulp and construction and property, will use the capital to partially redeem the outstanding debt obligations, as per the company’s announcement dated 28 August 2009, and for working capital and general corporate purposes.
“Unifiber is an outstanding investment opportunity,” says Philip Ho, senior managing director and head of global capital markets at Yorkville. “In our view, the forestry and construction sectors continue to show enormous potential in Asia, and Unifiber is well positioned as a regional leader in forestry, wood chips and pulp products, whilst their construction business continues to gain traction with high quality projects in key emerging markets.”
“Yorkville has been a trusted long-term funding partner since 2004. The subscription of the loan note and the extension of the equity line provide us with additional capital and funding certainty,” says Jaka Prasetya, chief executive officer of Unifiber.