Resort Savings & Loans secures $250m investment from Milost Global

US-based private equity investor Milost Global has signed a deal to invest $250 million in Resort Savings & Loans, a financial services company.

In a notice sent to the Nigerian Stock Exchange (NSE) the Mortgage bank said the financing agreement with Milost Global is part of the terms of the agreement, Milost will invest $250 million in the bank comprising $100 million as equity capital and $150 million as debt.

The transaction will take place through a private placement, subject to the approval of the NSE, Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). Resort Savings in December last year had notified stakeholders that it was in talks with a local investor to invest ₦8 billion in the bank. Talks regarding this are still ongoing.

Olayemi Rabiu the chief executive officer of Resort Savings & Loans PLC, said, “The investment will enable the company to assume the leadership role in the mortgage banking business in Nigeria, the West African sub-region and Africa as a whole as well as contribute excellently to the growth in African economies.”

This marks the third major transaction Milost has executed with a Nigerian entity. The firm had recently indicated that it was in discussions to acquire a large Nigerian bank, reportedly Unity bank.

In February, Japaul Oil announced it had signed a $350 million financing agreement with Milos. The funds will be channeled towards its mining projects.

In January, Milost Global acquired Primewaterview Holdings Nigeria Limited for $1 billion. Primewaterview is a diversified holding company with a portfolio of Real Estate, Oil & Gas, Quarry Mining, Healthcare and Power. 

Milost Plans $1 Billion Investment in Nigerian Bank

  • Firm is said to get initial stake of about 30% in Unity Bank
  • Deal is said to involve combination of shares and debt

Milost Global Inc. is looking to inject as much as $1 billion to recapitalize Nigeria’s Unity Bank Plc, which is struggling to build buffers after a slowdown in Africa’s biggest economy, according to two people familiar with the matter.

New York-based Milost offered to invest $700 million in equity and $300 million in five-year bonds that can be converted into shares in the Nigerian lender, said one of the people, who asked not to be identified as talks are confidential. The private-equity firm will get an initial stake of about 30 percent in the Lagos-based bank in exchange for its first equity investment of $250 million, the person said.

The transaction is still subject to a due diligence as well as regulatory approvals, the people said. The first part of the deal may be completed in the second quarter, one of the people said. The rest of the cash will be drawn down in intervals over a period of four years, provided Unity Bank has sufficient shares to issue to Milost, one of the people said.

Some small- and mid-sized Nigerian lenders are battling to rebuild capital levels after a slump in oil prices triggered a foreign-currency shortage and a contraction in the country’s economy in 2016 made it difficult for businesses to repay loans. Unity Bank, which was formed out of the merger of nine banks between December 2005 and March 2006, said in April last year that it is in talks to sell its non-performing loans to avoid penalties after missing a deadline set by regulators on its recapitalization plans.

American equity firm stakes N77b on Resort Savings

nationMilost Global Inc-an American private equity firm is staking $250 million, about N76.5 billion, on Resort Savings & Loans Plc in another major acquisition after the American firm entered into a binding commitment to invest $350 million in Japaul Oil & Maritime Services.

Milost, combining its traditional equity and debt approach, will be staking $100 million as equity capital and $150 million as debt capital. Already, Milost Global and Resort Savings have signed a commitment letter, giving the private equity firm the mandate to proceed with due diligence and other regulatory issues. The board of Resort Savings had approved the proposed transaction at its meeting on February 26, 2018.

In a regulatory filing at the Nigerian Stock Exchange (NSE) yesterday, the board of Resort Savings indicated that the mortgage bank has executed a $250 million deal with Milost Global. The regulatory filing was signed by Managing Director, Resort Savings & Loans Plc, Mr Olayemi Rabiu and Chairman, Resort Savings & Loans, Senator Sunday Fajinmi.

Nigeria Mortgage bank secures $250m investment from US PE firm

Mortgage

US-based private equity investor Milost Global has signed a deal to invest $250 million in Resort Savings & Loans, a financial services company.

In a notice sent to the Nigerian Stock Exchange (NSE) the Mortgage bank said the financing agreement with Milost Global is part of the terms of the agreement, Milost will invest $250 million in the bank comprising $100 million as equity capital and $150 million as debt.

The transaction will take place through a private placement, subject to the approval of the NSE, Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). Resort Savings in December last year, had notified stakeholders that it was in talks with a local investor to invest ₦8 billion in the bank. Talks regarding this, are still ongoing.

Olayemi Rabiu the chief executive officer of Resort Savings & Loans PLC, said, “The investment will enable the company to assume the leadership role in the mortgage banking business in Nigeria, the West African sub-region and Africa as a whole as well as contribute excellently to the growth in African economies.”

This marks the third major transaction, Milost has executed with a Nigerian entity. The firm had recently signalled it was in discussions to acquire a large Nigerian bank, reportedly Unity bank.

In February, Japaul Oil announced it had signed a $350 million financing agreement with Milos. The funds will be channeled towards its mining projects.

In January, Milost Global acquired Primewaterview Holdings Nigeria Limited for $1 billion. Primewaterview is a diversified holding company with a portfolio of Real Estate, Oil & Gas, Quarry Mining, Healthcare and Power.

TOP