Equus Acquires $7.3 Million of Orco Germany S.A. Bonds
April 27 2011 - 5:51PM
Marketwired
Equus Total Return, Inc. (NYSE: EQS) ("Equus" or the "Fund") today
announced that it has entered into two separate transactions
involving the purchase of an aggregate of 11,408 bonds ("Bonds")
issued by Orco Germany S.A. ("Orco Germany"), a commercial and
multi-family residential real estate holding company and developer
based in Berlin. The consideration provided to the selling
bondholders consists of an aggregate of 1,700,000 newly issued
shares of common stock of the Fund valued at $4.29 per share, which
is the Fund's most recently reported net asset value per share.
Expressed in dollar terms, the consideration is worth approximately
$7.3 million.
The Bonds, which accrue at an interest rate of 4% per annum and
mature on May 30, 2012, are being purchased from existing Orco
Germany bondholders at a purchase price of EUR 446.16 per Bond,
which represents a discount of 34% from their face value of EUR
676.00. The Bonds are scheduled to be redeemed at maturity at 125%
of their face value, or EUR 845.00 per bond.
Orco Germany is a subsidiary controlled by Orco Property Group
S.A., a Paris-based commercial and multi-family residential real
estate holding company and developer with properties and operations
throughout Eastern Europe. With gross assets of EUR 867 million and
a commercial property portfolio comprising 856,000 square meters of
rentable space, Orco Germany is the largest commercial landowner in
Berlin. The shares of Orco Germany are traded on the Prime Standard
of the Frankfurt Stock Exchange under the international securities
identification number ("ISIN") LU0251710041. The bonds of Orco
Germany are traded on the Luxembourg Stock Exchange under the ISIN
XS0302623953.
"We believe that the investment in the bonds of Orco Germany
represents an affirmative step forward for Equus in securing
income-producing investments that possess favorable yield
characteristics," said John Hardy, Executive Chairman of Equus.
"Moreover, the discount at which we will acquire the Bonds, and the
premium with which they will be redeemed, in approximately 13
months, represents a valuable opportunity for the Fund to achieve a
solid return. By structuring the transaction in this manner, we
have preserved the Fund's cash resources, which will be available
to make additional investments."
A fairness opinion in respect to the purchase of the Bonds was
provided to the Fund from Horwath Audit France, an independent
member of Crowe Horwath International, which is ranked among the
top 10 global accounting networks with 2010 revenues exceeding $2.8
billion, and more than 140 independent accounting and advisory
services firms, with 640 offices and 27,963 professionals and staff
in more than 100 countries around the world.
About Equus
The Fund is a business development company that trades as a
closed-end fund on the New York Stock Exchange, under the symbol
"EQS". Additional information on the Fund may be obtained from the
Fund's website at www.equuscap.com.
This press release may contain certain forward-looking
statements regarding future circumstances. These forward-looking
statements are based upon the Fund's current expectations and
assumptions and are subject to various risks and uncertainties that
could cause actual results to differ materially from those
contemplated in such forward-looking statements including, in
particular, the risks and uncertainties described in the Fund's
filings with the SEC. Actual results, events, and performance may
differ. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as to the date hereof.
The Fund undertakes no obligation to release publicly any revisions
to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. The inclusion of any statement
in this release does not constitute an admission by the Fund or any
other person that the events or circumstances described in such
statements are material.
Contact: Patricia Baronowski Pristine Advisers, LLC (631)
756-2486
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