JZ CAPITAL PARTNERS
LIMITED
(a closed-end collective investment scheme incorporated with
limited liability under the laws of Guernsey with registered number
48761)
LEI: 549300TZCK08Q16HHU44
Updates in
relation to Senior Facility, Real Estate Valuations and Secondary
Sale
Recommencement of
NAV announcements
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR").
8 October 2020
On 25 September 2020, JZ Capital
Partners Limited ("JZCP" or the "Company"), the London listed fund that invests in US and
European micro-cap companies and US real estate, announced that it
had received consent from Guggenheim Partners to make the relevant
interest payment due on 30 September
2020 to the holders of its Convertible Unsecured Loan Stock
due 2021 ("CULS"). The Company subsequently made the CULS
interest payment in full on that date.
It was also noted in that announcement that the Company expected
to breach its minimum asset coverage ratio under its senior
facility with Guggenheim Partners at the end of September 2020, and that the aforementioned
consent to make the CULS interest payment required the Company to
have entered into amendments to its senior facility by 7 October 2020; the failure to do so would have
also constituted an event of default under the facility. The
Company today confirms that, whilst it has not yet reached final
agreement with its lenders as to the amended terms of the facility
and is therefore in breach of its minimum asset coverage ratio and
in default under the facility, the Company remains in discussions
and considers that it is close to procuring the necessary waivers
from and securing agreement with its lenders as to the amended
facility terms. The Company expects to make a further
announcement shortly.
For completeness, the Company also notes that, if the existing
or any other event of default under the senior facility were to
continue on any subsequent CULS interest payment date, the Company
would be prohibited from making payments to the holders of the
CULS, absent a waiver, a further consent or the amended terms of
the facility allowing for such payments to be made.
Separately, the Company refers to its earlier announcement made
on 17 September 2020 in relation to
anticipated write downs to its real estate investments including on
account of the Covid-19 pandemic. The Company can today
provide a further update on this matter and accordingly confirms
that it expects to experience net write downs to its real estate
investments that may result in a mark down to its net asset value
of approximately $110 million
(revised upwards from the range of between $80 to $100 million
announced previously). Having now provided this further
update (and the Company considering that it will, at the time of
release of its upcoming half year results, be better placed to make
informed judgements as to the impact on value resulting from
Covid-19), the Company can confirm that it intends to recommence
its monthly NAV announcements following the publication of those
results for the six-month period ended 31
August 2020.
Finally, the Company also wishes to provide an update in
relation to the proposed secondary sale of certain of its US
micro-cap assets. The secondary sale, like the Company's
discussions with its lenders, has continued to progress in a
positive manner and an agreement is expected to be reached and
announced shortly.
Market Abuse Regulation:
The information contained within this announcement is inside
information as stipulated under MAR. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain. The person responsible for arranging for the
release of this announcement on behalf of JZCP is David Macfarlane, Chairman of JZCP.
For further information:
Ed Berry
FTI Consulting |
+44 (0) 20 3727 1046 |
David Zalaznick
Jordan/Zalaznick Advisers, Inc. |
+1 (212) 485 9410 |
Sam Walden
Northern Trust International Fund Administration Services
(Guernsey) Limited |
+44 (0)1481 745385 |
Important Notice
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates",
"anticipates", "expects", "intends", "may", "will" or "should" or,
in each case, their negative or other variations or comparable
terminology. These forward-looking statements relate to matters
that are not historical facts. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future. Forward-looking statements are not guarantees of future
performance. The Company's actual investment performance, results
of operations, financial condition, liquidity, policies and the
development of its strategies may differ materially from the
impression created by the forward-looking statements contained in
this announcement. In addition, even if the investment performance,
result of operations, financial condition, liquidity and policies
of the Company and development of its strategies, are consistent
with the forward-looking statements contained in this announcement,
those results or developments may not be indicative of results or
developments in subsequent periods. These forward-looking
statements speak only as at the date of this announcement. Subject
to their legal and regulatory obligations, each of the Company, the
Investment Adviser and their respective affiliates expressly
disclaims any obligations to update, review or revise any
forward-looking statement contained herein whether to reflect any
change in expectations with regard thereto or any change in events,
conditions or circumstances on which any statement is based or as a
result of new information, future developments or otherwise.