FOR
IMMEDIATE RELEASE
NOT FOR
RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY
OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, ANY MEMBER
STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE REPUBLIC OF
IRELAND), AUSTRALIA, CANADA, SOUTH AFRICA OR ANY OTHER JURISDICTION
WHERE IT IS UNLAWFUL TO DO SO.
30 April
2024
EJF Investments Ltd ("EJFI"
or the "Company")
Portfolio
Update
EJFI, which provides investors
exposure to primarily a diversified portfolio of debt issued by
smaller US banks and insurance companies, notes that one of its
issuers, Republic First Bancorp ("Republic First"), was seized by
Pennsylvania regulators on Friday, 26 April 2024 and subsequently
sold to Fulton Bank. EJFI has exposure to notes issued by Republic
First through two of its CDO Equity Tranche investments.
Based on the current mechanics of
the sale to Fulton Bank, it is the view of the Manager that there
may not be any material recovery of the debt issued by Republic
First. If the cash collected by the relevant CDO at the end
of its life is insufficient to pay all of its investors, then such
losses (as reduced by any over-collateralisation at each deal
level) are absorbed first by the CDO Equity Tranches of each of the
respective deals.
The Manager is monitoring the
situation closely, and notes that as reported in the Performance
Report for 30 September 2023 NAV, a mark down was already taken on
relevant CDO Equity Tranches considering the broader market as well
as the deferral on this exposure. Absent any recovery and
considering the current over-collateralisation in the respective
deals, the Manager estimates there could be a potential loss of up
to 1% of the Company's most recently published NAV (March 2024) on
a look-through basis.
The Manager believes that the
underlying issues Republic First Bank was faced with were
company-specific and not reflective of the current broader market
sentiment.
ENQUIRIES
For
the Manager
EJF Investments Manager
LLC
Peter Stage / Jay
Ghatalia
pstage@ejfcap.com /
jghatalia@ejfcap.com
+44 203 752 6775 / +44 203 752
6776
For
the Company Secretary and Administrator
BNP Paribas S.A., Jersey
Branch
jersey.bp2s.ejf.cosec@bnpparibas.com
+44 1534 709 198/ +44 1534 813
967
For
the Brokers
Barclays Bank PLC
Dion Di Miceli / Stuart
Muress
BarclaysInvestmentCompanies@barclays.com
+44 20
7623 2323
Liberum Capital Limited
Darren Vickers / Owen
Matthews
ejfinvestments@liberum.com
+44 203 100 2222
About EJF Investments Ltd
EJFI's objective is to provide
shareholders with attractive risk adjusted returns through regular
dividends and capital growth over the long term. EJFI generates
exposure primarily to a diversified portfolio of loans issued by
financial institutions and related or similar assets in the U.S.,
U.K. and Europe.
EJFI currently invests primarily in
Equity Tranches of CDOs structured by an affiliate of EJF Capital
LLC, providing levered exposure to a highly diversified portfolio
of securities issued by U.S. financial institutions (banks and
insurance companies), these being Risk Retention
Investments.
EJFI is a registered closed-ended
limited liability company incorporated in Jersey under the
Companies (Jersey) Law 1991, as amended, on 20 October 2016 with
registered number 122353. The Company is regulated by the Jersey
Financial Services Commission (the "JFSC"). The JFSC is protected by both
the Collective Investment Funds (Jersey) Law 1988 and the Financial
Services (Jersey) Law 1998, as amended, against liability arising
from the discharge of its functions under such laws.
The JFSC has not reviewed or
approved this announcement.
LEI:
549300XZYEQCLA1ZAT25
Investor information &
warnings
The latest available information on
the Company can be accessed via its website at www.ejfi.com.
This communication has been issued
by, and is the sole responsibility of, the Company and is for
information purposes only. It is not, and is not intended to be an
invitation, inducement, offer or solicitation to deal in the shares
of the Company. The price and value of shares in the Company and
the income from them may go down as well as up and investors may
not get back the full amount invested on disposal of shares in the
Company. An investment in the Company should be considered only as
part of a balanced portfolio of which it should not form a
disproportionate part. Prospective investors are advised to seek
expert legal, financial, tax and other professional advice before
making any investment decision.