Metrics Credit has emerged as a key lender to Elanor Investors that is poised to strike a $125m refinancing deal with Keyview Financial Group.
The understanding is that the Metrics debt will be repaid the $75m it is owed once the Keyview refinancing is finalised, which is due to happen shortly.
Sources say Metrics ranks as a first-in-line senior lender, behind FIIG, owed $40m.
Metrics is moving to distance itself from Elanor after the financier controlled by former top NAB executives recently took control of Quadrant Private Equity’s hospitality business Pacific Concepts and Hunter Hospitality that was previously known as The Rockpool Group.
The business owed between $100m and $200m to Metrics, sources say.
Metrics bought out other lenders about six months ago, including those from South Korea, and hired new management to run the business and pursue a new strategy.
Keyview Financial Group was formerly known as Realside Financial Group, and is a specialist private markets.
The MA Moelis-advised refinancing comes as Elanor is yet to release its accounts.
Elanor Investors has suspended trading and cancelled its distribution as it has been considering a range of options to stabilise and maintain its ongoing financial position.
Its debt reached a level of 45 per cent of its equity, which saw it breach its covenant of 40 per cent.
Citi has been looking at sale options for the company as a whole, while King & Wood Mallesons is Elanor’s legal adviser.
The company is also selling hotel assets within the Elanor Hotel Accommodation Fund and would exit the hotels, tourism and leisure sector.
It is understood assets under management in the fund are worth slightly less than $500m.
Key assets are Tasmania’s Cradle Mountain Lodge and the Mayfair Hotel in Adelaide.
Established in 2009, Elanor Investors is an ASX-listed real estate funds management group, managing more than $6.2bn of real estate investments across Australia and New Zealand.
It originates and manages real estate assets to deliver returns for both Elanor’s funds management capital partners and Elanor securityholders. The business is run by former Lehman Brothers Australia head Glenn Willis, who co-founded Moss Capital and Grange Securities, which was bought by Lehman Brothers.
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