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
Convertible
Unsecured Loan Stock Interest Payment
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR").
25 September 2020
Further to the announcement on 17
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, today announces that it has received consent from
Guggenheim Partners to make the upcoming interest payment due on
30 September 2020 to the holders of
its Convertible Unsecured Loan Stock due 2021 ("CULS"). The Company
had announced previously that it expected it would breach its
minimum asset coverage ratio under its senior facility with
Guggenheim Partners by the end of September
2020, which absent a waiver or consent being obtained, would
have prohibited the Company from making the interest payment
falling due on the CULS on 30 September.
The consent remains subject to a limited number of customary
conditions precedent, including no events of default occurring
under the CULS or its senior facility (save for a breach of the
minimum asset coverage ratio), which the Company expects to satisfy
prior to the interest payment date on 30 September and therefore
the Company expects to make the CULS interest payment in full on
30 September 2020.
Otherwise, whilst the Company still expects to breach its
minimum asset coverage ratio under its senior facility with
Guggenheim Partners at the end of September, the Company and its
lenders remain in ongoing discussions to procure a waiver of this
breach and make certain further amendments to the Company's current
lending arrangements with its lenders. The abovementioned consent
in respect of the CULS interest payment falling due on 30 September
requires the Company to have entered into an amendment to its
senior facility by 7 October 2020;
the failure to do so would constitute an event of default under the
facility. The Company currently expects that it will have reached
agreement with its lenders as to the amended terms of the facility
within that timeframe. For the avoidance of doubt, any event of
default under the senior facility that is continuing on any
subsequent interest payment date under the CULS would prohibit the
Company from making future interest payments to the holders of the
CULS, absent a waiver, a further consent or the amended terms of
the facility being agreed by such date and thereby allowing for
such payments to be made.
The Company will make further announcements as required in
relation to the status of discussions with its lenders as matters
progress.
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.