DirectCash Payments Inc. 8.125% due August 8, 2019. DirectCash, a leading provider of ATMs, issued $200 million of debt in 2012 to fund the acquisition of Customer Limited, the largest provider of ATMs in Australia. Post-acquisition, DirectCash has a leading global ATM business, with the #1 market share in both Canada and Australia and the 3rd largest independent deployer of ATMs in the U.K. The Canadian market is currently well-served; however, growth should come from both Australia and the U.K. whose markets are relatively unsaturated. With the Customer Limited acquisition, DirectCash's pro forma EBITDA is $73 million and management has identified potential synergies, which should improve those cash flows further. DirectCash has a current market cap of $440 million, of which management owns 30%. DirectCash has stable, recurring revenue streams with a proven track record of growing cash flows. Bonds currently yield 7.2%.
We have two holdings in the portfolio that have significantly declined in value: Skylink Aviation (12.25% due March 15, 2016) and Northland Resources (13% due March 6, 2017).
In March 2011, the Company purchased second lien notes of Skylink Aviation. Skylink provides logistics services to Government and international organizations, with the majority of their revenue coming from contracts in Afghanistan. In 2012, management of Skylink were unable to adjust costs or replace revenues as the Canadian presence in Afghanistan was reduced, and Skylink could no longer support their debt. As a result, they filed for CCAA protection on March 8, 2013.
Deans Knight have been involved in the restructuring process, sit on the steering committee, and will be represented on the Board of Directors post restructuring. As part of the steering committee, we were in a position to backstop our pro rata share ($1.25 million) of an $18 million Debtor-In-Process (DIP) financing. The DIP allows Skylink to continue operations which was necessary to benefit the ultimate recovery of the second lien notes. The DIP financing is attractive as it has security over the Skylink's assets (specifically accounts receivable), earns a 10% coupon, and the providers of the DIP will own 75% of the equity. Although the total return on the DIP is not quantifiable at this time, Deans Knight anticipates it will generate an attractive return with equity upside and, therefore, will increase the recovery value for our second lien notes relative to the alternative scenario, which would be liquidation. Skylink notes were priced at $7 per $100 face value on March 31, 2013 and currently represent 0.3% of the portfolio. Given the current weight, the Skylink Notes will have minimal impact on the portfolio going forward, but we believe we will recover some value through the restructuring process.
In February 2012, the Company purchased first lien notes of Northland Resources, which produces a high grade iron ore concentrate from their Kaunisvaara project in Northern Sweden. In January 2013, Northlands Resources announced a funding shortfall at its Kaunisvaara mine and the need to raise approximately $400 million in additional capital. The unanticipated cost overruns destroyed confidence in management and fundraising efforts failed. As a result, Northland Resources filed for reconstruction, and a bondholder group formed to protect bondholders' interests. On May 3, 2013, bondholders approved a long-term restructuring solution whereby Northlands Resources will attempt to raise $362 million USD, via a first lien secured bond, to finance the development of the Kaunisvaara Project. If Northland Resources is successful in securing the financing, the full principal amount of our existing bonds will remain as outstanding debt as second lien convertible bonds, with a 4% Pay-In-Kind coupon, convertible into approximately 80% of the equity of the Company.
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