Pivot takes First Artist stake

8th Dec 2010 11:30

Theatre advertising and events company First Artist Corporation danced higher today on news that Pivot Entertainment is investing $4m (£2.5m) via a subscription at 11p a share and a loan.An approach had been flagged in August, but rather than a takeover, the New York based entertainment marketing group will buy £1.1m of shares in the £2.8m UK firm and provide a five-year unsecured loan facility of £1.4m."This is the first stage of an investment programme by Pivot into the company intended to enhance the business and reduce bank debt," First Artist said Wednesday. "As a result of the investment made by Pivot a number of changes to the board are anticipated but are yet to be finalised."As well as the 9.9m shares it's buying, the Stoller Family Partners LP, a company connected to Pivot, holds 2m shares, giving a combined stake of 29.86%.All bid talks are off at the moment, though Pivot said it could make an offer if someone else comes in within the next six months. "We feel that the transaction with Pivot brings with it not only financial strength but a creative complement which should greatly assist trading across the group in the coming years," First Artist founder and chief executive Jon Smith said.The company's existing facility with Allied Irish Bank will continue in place until 31 January when it will be replaced with a £14.5m revolving credit facility used to refinance existing facilities and for working capital.