Rugby Australia confirms $80m credit raise

[The InnFORCEr]

Fri, Nov 24, 2023, 12:41 PM
Nathan Williamson


The upsized and flexible $80m credit facility on a five-year term was confirmed after RA entered an agreement with Pacific Equity Partners (PEP).

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The investment will be focused on the development of the game, particularly women's Rugby, community and pathways.

“RA has been assessing various capital raise alternatives with Jefferies Australia for more than a year,” he said.

”...We plan to invest in the critical areas needed to grow the game - we have identified high-performance integration, Women’s Rugby, Community and Pathways as critical areas to focus on, and I believe investment in these areas will give us the opportunity to capitalise on the exciting major events on the horizon.

“In PEP, we have selected a partner committed to helping us on this path – they are likewise excited about this next chapter for Rugby in Australia and support our vision and plan. They bring deep experience across different sectors, and investment types, including private equity and debt, and we look forward to working with them.

“I would also like to recognise the professionalism of the PEP team throughout this process. I believe together we have achieved a very positive result for the game.”

RA has opted for a credit rise over exploring private equity. Photo: Getty Images
It comes after RA CEO Waugh announced earlier in the year they would explore the capital rise over private equity, believing it was in the best interests of all stakeholders at this current moment.

“Given the visibility we have on revenues from the British and Irish Lions and World Cups, it became clear that debt capital was going to be the best solution for Rugby," Waugh added.

“This does not compromise RA’s options down the road, which could include private equity investment.

“This approach ensures that we retain 100% of the commercial revenues from the game, that all capital raised will go into the game, and that RA controls its own direction during this next period of growth and development.

https://www.rugby.com.au/news/rugby-...raise-20231124

[jargan83]

Guess that's putting a positive spin in going $80 million into debt.

[Tazzmania]

Thats a huge loan, has to paid by the end of the world cup, together with other borrowings.

Interest rates going to remain high as well for that time period.

Lucky Hamish is gone.

One of PEPS commitments to their investors is:

PEP takes environmental, social and governance factors into account throughout its investment activities and supports the efforts of our industry to promote the highest standards for ethical investing and improved transparency.

Not sure how hands off they are going to be!!!

[AndyS]

You have to wonder if they manage their personal finances the same way they manage Rugby's...?

[brokendown gunfighter]

hey,woah,lol

[Burgs]

Keep in mind 10% will need to be put aside for the Sua'ali'i deal.

[SNOB]

Funny how interest doesn’t get mentioned much the same as the guy that bought the Monaro and lumped it into his mortgage and will now be paying it off for 45 years!

[shasta]

You have to wonder if they manage their personal finances the same way they manage Rugby's...?

Given that I just read at The Roar that this debt is on top of $40m that was borrowed during covid at a staggering 11%pa; yes you would wonder that. As rates were at record lows at the time that would suggest RA is seen as a pretty dodgy investment.

[The InnFORCEr]

Not to mention the $50m advance from WR for the Lions Tour.

They will be desperate for a PI partner straight after the Lions Tour when the coffers are empty and the piper wants paying.

[Burgs]

Not to mention the $50m advance from WR for the Lions Tour.

They will be desperate for a PI partner straight after the Lions Tour when the coffers are empty and the piper wants paying.

And Magnum has retired...

[shasta]

And Magnum has retired...

I listen to a weekly podcast from ABC announcer Andrew Dunkley & Dr Fred Watson. They try to out-do each other with the worst "dad jokes". That is right up there.

[Burgs]

"dad jokes"

Does this mean I have a child lurking out there somewhere