Ninepoint Partners LP (Ninepoint) and Third Eye Capital Corporation, whose affiliate, Third Eye Capital Management Inc., is sub-advisor of the Ninepoint-TEC Private Credit Fund and the Ninepoint-TEC Private Credit Fund II announced that Pieridae Energy Limited (Pieridae) has successfully refinanced a senior secured non-revolving term loan facility. In conjunction with the refinancing, Pieridae will enter a new loan with Prudential Private Capital, the private capital arm of PGIM, the USD 1.3 trillion global investment management business of Prudential Financial Inc., and Voya Investment Management which manages approximately USD 323 billion as of March 31, 2023. Proceeds from the refinancing will be used to fully repay the current outstanding debt of $185 million to funds managed, sub-advised, or operated by affiliates of Third Eye Capital.

The term loan was originally provided to Pieridae in October 2019 and has produced a double-digit internal rate of return for the Funds. Through this repayment, the Ninepoint-TEC Private Credit Fund and Ninepoint-TEC Private Credit Fund II will receive their respective pro-rata share of collectively $123 million. The repayment to both funds will be made upon closing of the refinancing transaction and will provide significant liquidity to service their cash requirements and will position the Ninepoint-TEC Private Credit Fund II to continue to invest and grow.

Since inception in 2010, the Ninepoint-TEC Private Credit strategy has produced an annualized net return of 10.33%. Third Eye Capital provided the senior secured term loan to Pieridae to help finance its purchase of Shell Canada Energy's (Shell) midstream and upstream assets in the Southern Alberta Foothills in 2019. The transaction and term loan allowed Pieridae to retain more than 200 jobs for former Shell Canada employees.

With the addition of these new employees, Pieridae has become a significant employer in the region with roughly 300 employees and has contributed millions of dollars to the local and Canadian economy. The integration of the Shell assets has enabled Pieridae to become the largest Foothills producer in North America, growing net operating income from $25 million in 2019 to $201 million in 2022. Third Eye Capital made the $200-million (net) loan to Pieridae in 2019 through Erikson National Energy Inc. (Erikson), a special purpose entity partially financially backed by Ninepoint-TEC Private Credit Fund and the Ninepoint-TEC Private Credit Fund II.

Through to, Erikson has received $370 million in cash payments, comprising principal, interest and fees from the loan. Erikson will retain a $20 million short-term, senior secured loan at Pieridae Energy's parent company, and it currently owns about 15% of Pieridae Energy's common stock.