Scottish developer and housebuilder Miller Group has secured a £160m equity investment from GSO Capital Partners.
A statement from the group said the deal with GSO, which is part of the Blackstone investment house, provides it with “additional investment capital and a significantly strengthened balance sheet”.
The agreement in principle “secures the injection of £160m of new equity capital and will refinance the existing debt with new five-year committed facilities”.
The refinancing will be provided by an investor group led by GSO, which also includes group chief executive Keith Miller, group executives, Noble Grossart, Lloyds Banking Group, Royal Bank of Scotland and National Australia Bank.
Miller’s net assets now stand at around £250m.
It is understood that the cash injection will give GSO Capital Partners a stake of about 50% in the Scottish firm, which has been labouring under around £600m in debt.
In 2010, Miller Group, which was 60% owned by the Miller family, reported a pre-tax loss of £58m, down from £72m in 2009. Revenue last year was £666m, down by 15%.
Its divisions cover property development, construction and homebuilding, while it also has a mining operation.
Keith Miller said: “This equips us with substantial extra muscle to take advantage of the many opportunities offered by the current economic cycle.
“I am delighted that we have attracted a significant capital investment from one of the world’s leading financial investors. This is due to the outstanding quality of our business and also to the continuing support of our existing Banking partners.”
Completion of the transaction is subject to certain conditions, including regulatory consents.
bridget.o’connell@estatesgazette.com
