In an effort to reduce its debt, The Pioneer Group in Boston has arranged for B-share financing through Putnam Lovell, de Guardiola & Thornton. Pioneer will receive a premium of approximately $62 million in return for granting Putnam Lovell the rights to the ongoing 12b-1 revenue stream from Pioneer's mutual funds' B-shares received prior to September 30. As of September 30 that revenue stream was valued at $54 million.
The deal also gives Putnam Lovell the rights to receive future 12b-1 fees for a period of three years beginning September 30. According to Timothy T. Frost, vice president for corporate development and communications at Pioneer, the firm will use the proceeds to reduce its debt.