Pelorus Management Group, LLC Addresses Inaccurate Claims Made by Arena Investors, LP
Sends Demand for Formal Retraction of Arena Letter
NEWPORT BEACH, Calif., Sept. 9, 2024 /PRNewswire/ -- Pelorus Management Group, LLC ("Pelorus"), today issued a statement addressing inaccurate and inflammatory accusations made by Arena Investors, LP ("Arena") in a press release and accompanying letter dated September 5, 2024. The full statement from Pelorus follows:
"Our relationship with and responsibility to our investors and noteholders are among the core tenets of our business at Pelorus. We are disappointed that Arena felt compelled to publicly issue a letter filled with inaccurate accusations about our interactions with them and, more importantly, our recent efforts to strengthen the collateral securing the 7.00% senior secured notes issued by Pelorus Fund REIT, LLC (the "Notes") in 2021.
During the second quarter of this year, Pelorus replaced certain collateral securing the Notes with stronger collateral, which is permitted by the Note agreements governing the collateral. As Pelorus previously discussed with Arena in July, this action was taken in the best interest of the Noteholders to strengthen the quality of the collateral package securing the Notes and effectuated in a manner consistent with Pelorus' commitment to our investors across all product offerings.
Importantly, Pelorus is, and has been, in compliance with the affirmative and negative covenants under Sections 9 and 10 of the Note Purchase Agreement dated September 21, 2021, and any suggestion or implication otherwise is false. Noteholders have been paid in accordance with the terms of the Note Purchase Agreement, and we look forward to continuing to honor the Notes through their maturity in 2026. Given these facts, we have sent a letter to Arena demanding a formal retraction of their letter and the inaccurate accusations included therein.
As always, we remain committed to achieving strong financial performance and strong corporate governance practices, and appreciate the support of our investors and noteholders across our business."
About Pelorus Capital Group
Pelorus Capital Group, LLC, the sponsor of Pelorus Fund, LLC and Pelorus Fund REIT, LLC, offers a range of innovative transactional solutions addressing the diverse needs of real estate investors and portfolio managers. Its flexible acquisition and bridge lending programs are the direct result of its involvement in more than 4,700 transactions of varying size and complexity. Since 1991, Pelorus principals have participated in more than $1 billion of real estate investment transactions using both debt and equity solutions. Pelorus draws on extensive experience to rapidly understand an opportunity, structure a logical solution and execute a timely close. For more information, please visit https://peloruscapitalgroup.com/.
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MEDIA CONTACT
ASC Advisors
Taylor Ingraham / Elizabeth Amory
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203 992 1230
SOURCE Pelorus Management Group, LLC
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