Pentagon Property Group has finalised the acquisition of Mariner Credit Corporation, including buying approximately $1.6 million of the listed and unlisted bonds owned by Mariner and selling off its excess derivative contracts to strengthen its balance sheet. The company will change its name to Pentagon Capital (PC). Pentagon has also extinguished loans between Mariner and PCL.
PC now comprises $10.1 million in cash, $1.3 million in loans to Pentagon and $0.9 million in real estate investment trusts (REITS). Pentagon will remix its REITs portfolio to comprise interests in REITS to service the interest and principal payments under the bonds issued by PC and will use the cash in PC to buy up more assets.
Directors of Pentagon, Tony Pitt and Alan Sutton, have joined the board of PC, while Bill Ireland and Brent Cubis have resigned as directors of PC. Robert Molinari will remain on the board of PC.
