Good evening,

Five months after Metrics Credit Partners took the keys to Quadrant Private Equity’s Pacific Hunter restaurant empire, the firm has found itself in a similar situation at another PE-backed asset.

This time, it’s Oncall Group, a disability and youth services provider that was Victoria’s biggest player, employing 1700 staff, when it sold a majority stake to Sydney mid-market private equity firm Pemba Capital Partners in 2019. Metrics has been a lender since at least late 2022 when Oncall refinanced about $50 million of its debt.

Street Talk can reveal that Metrics is in advanced discussions to execute a debt-for-equity swap at Oncall, which upon completion in the coming weeks would make the private credit investor the owner of the disability services business. Metrics is expected to revamp Oncall’s board and set about whipping the business into shape before an eventual sale.

Sources said the debt-for-equity swap followed Metrics buying the loans owned by HSBC, Macquarie Bank and two local credit funds around October to take control of the debt stack.

The outgoing lenders are understood to have made as little as 10¢ in the dollar, and the Pemba Growth Fund would be staring down a zero return on the investment. As for Metrics, it has told investors it expects to recover the money and make a profit on the sale of the business.

Representatives for Metrics, Pemba, Macquarie and HSBC declined to comment when contacted by Street Talk.

Read the full story tomorrow and more on the Street Talk page.

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At least one minority lender at Healthscope is preparing to hold an auction of its 3 to 5 per cent position early this week, after refusing to sign a standstill agreement. The lender is looking for 40¢ to 50¢ in the dollar, and would be courted by David Di Pilla.

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