JZ CAPITAL PARTNERS LIMITED (the
"Company" or "JZCP")
(a closed-ended investment company incorporated with limited
liability under the laws of Guernsey with registered number
48761)
LEI 549300TZCK08Q16HHU44
Redemption of
Subordinated Loan Notes
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014, WHICH FORMS PART
OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018
("MAR").
15 February 2023
JZ Capital Partners Limited, the London listed fund that has investments in US
and European microcap companies and US real estate, is pleased to
announce that, following a number of recent realisations (including
most recently the closing of the Deflecto Holdings' portfolio
company disposal as announced by the Company on 24 January 2023) and consistent with the
Company's investment policy of repaying its debt obligations, the
Company has undertaken an early voluntary redemption in full of its
subordinated 6 per cent. loan notes issued to David W. Zalaznick and John (Jay) Jordan II and their affiliates (the
"Noteholders") which were due to mature on 30 September 2023 (the "Subordinated Loan
Notes"). In connection with the voluntary redemption, the
Company has funded the payment to the Noteholders of approximately
US$32 million in respect of the
principal and interest outstanding under the Subordinated Loan
Notes.
As previously announced, voluntary redemptions of the
Subordinated Loan Notes are permitted, provided certain financial
tests as set out within the senior facility agreement provided by
WhiteHorse Capital Management, LLC (the "Senior Facility")
are satisfied. These include (a) there being no event of default in
existence under the Senior Facility, (b) the Company maintaining a
minimum asset coverage ratio (calculated by reference to eligible
assets, subject to customary ineligibility criteria and
concentration limits, plus unrestricted cash) of not less than 4.00
to 1.00, and (c) ensuring the Company retains an aggregate amount
of unrestricted cash and cash equivalents of not less than US$12.5
million.
Following the voluntary redemption of the Subordinated Loan
Notes, the Company has approximately US$105
million of cash and cash equivalents. The Company needs to
continue to maintain such cash liquidity to invest in accordance
with its existing investment policy to maximise the value of its
existing portfolio investments where appropriate, as well as in the
current uncertain economic climate to support them and so as to
meet existing obligations as they fall due.
The Company remains focused upon its existing investment policy
as approved by shareholders, which includes not making further
investments outside of existing obligations or to support existing
portfolio companies, and with the intention of realising the
maximum value of the Company's investments and, after repayment of
all its indebtedness, to return capital to shareholders.
Market Abuse Regulation
The information contained within this announcement is considered
by the Company to constitute 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 the release of this
announcement on behalf of the Company is David Macfarlane, Chairman of JZCP.
______________________________________________________________________________________
For further information:
Kit Dunford / Ed
Berry
FTI Consulting |
+44 (0)7717 417 038 / +44 (0)7703
330 199 |
David Zalaznick
Jordan/Zalaznick Advisers, Inc. |
+1 (212) 485 9410 |
Hannah Hayward
Northern Trust International Fund Administration Services
(Guernsey) Limited |
+44 (0) 1481
745417 |
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,
Jordan/Zalaznick Advisers, Inc. 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.