TIDMCCPG
RNS Number : 4904R
CVC Credit Partners European OpsLtd
21 September 2017
21 September 2017
FOR IMMEDIATE RELEASE
RELEASED BY BNP PARIBAS SECURITIES SERVICES S.C.A., JERSEY
BRANCH
HALF-YEARLY RESULTS ANNOUNCEMENT
THE BOARD OF DIRECTORS OF CVC CREDIT PARTNERS EUROPEAN
OPPORTUNITIES LIMITED ANNOUNCE HALF-YEARLY RESULTS FOR THE SIX
MONTHSED 30 JUNE 2017
The information contained within this announcement constitutes
inside information.
HALF YEARLY BOARD report
financial highlights, performance summary and dividend
history
Financial highlights
Sale of treasury shares
During the six months ended 30 June 2017, CVC Credit Partners
European Opportunities Limited (the "Company") completed the
following sale of Sterling ordinary shares (the "Sterling Shares")
out of treasury.
Settlement date Sterling
Shares
6 March 2017 650,000
8 March 2017 250,000
6 April 2017 500,000
10 April 2017 250,000
18 April 2017 250,000
20 April 2017 250,000
8 May 2017 200,000
19 May 2017 350,000
Contractual quarterly tenders
During the six months ended 30 June 2017, the Company completed
the following contractual quarterly tenders. On the settlement date
the tendered shares were transferred to the Company's name and held
in treasury.
Settlement date Euro ordinary Sterling Shares
shares (the "Euro tendered
Shares") tendered
13 February 2017 6,270,498 7,972,725
15 May 2017 5,543,631 6,965,625
Number of shares in issue as at 30 June 2017:
117,147,455 Euro Shares(1) (31 December 2016: 128,961,584 Euro
Shares(1) )
202,610,969 Sterling Shares(2) (31 December 2016: 214,849,319
Sterling Shares(2) )
Market capitalisation as at 30 June 2017:
Euro Share class: EUR127,690,726 (31 December 2016:
EUR132,830,432)
Sterling Share class: GBP228,545,173 (31 December 2016:
GBP220,220,552)
Performance summary
As at As at
30 June 31 December
2017 2016
Net Asset Value per
Euro Share EUR1.0954 EUR1.0541
Euro Share price (bid
market)(3) EUR1.0900 EUR1.0300
Euro Share Net Asset
Value total return(4) 6.36% 9.29%
Net Asset Value per GBP1.1178
Sterling Share GBP1.0696
Sterling Share price GBP1.1280
(bid market) (3) GBP1.0250
Sterling Share Net
Asset Value total
return(4) 6.92% 9.80%
Period highs and lows
Six months Six months Year ended Year ended
ended ended 31 31
30 June 30 June December December
2017 2017 2016 2016
High Low High Low
Net Asset Value
per Euro Share EUR1.0954 EUR1.0560 EUR1.0541 EUR0.9788
Euro Share price
(bid market)(5) EUR1.1200 EUR1.0080 EUR1.0300 EUR0.9400
Net Asset Value
per Sterling Share GBP1.1178 GBP1.0720 GBP1.0696 GBP0.9875
Sterling Share
price (bid market)
(5) GBP1.1400 GBP1.0200 GBP1.0375 GBP0.9525
Dividend history
Ex-dividend Payment
date date
Euro - EUR0.025 per Euro Share 04/02/2016 26/02/2016
Sterling - GBP0.025 per Sterling 04/02/2016 26/02/2016
Share
Euro - EUR0.025 per Euro Share 14/07/2016 05/08/2016
Sterling - GBP0.025 per Sterling 14/07/2016 05/08/2016
Share
Euro - EUR0.0125 per Euro Share 03/11/2016 25/11/2016
Sterling - GBP0.0125 per Sterling 03/11/2016 25/11/2016
Share
Euro - EUR0.0125 per Euro Share 02/02/2017 24/02/2017
Sterling - GBP0.0125 per Sterling 02/02/2017 24/02/2017
Share
Euro - EUR0.0125 per Euro Share 04/05/2017 26/05/2017
Sterling - GBP0.0125 per Sterling 04/05/2017 26/05/2017
Share
Please refer to note 14 for further information subsequent to
the reporting period.
(1) - Excludes 110,001,299 (31 December 2016: 98,187,170) Euro
Shares held as treasury shares
(2) - Excludes 70,239,838 (31 December 2016: 58,001,488)
Sterling Shares held as treasury shares
(3) - Source: Bloomberg
(4) - Sources: BNPP, Bloomberg. NAV total return is net of issue
costs and includes dividends. Any dividends received by a
shareholder are assumed to have been reinvested in the Company's
assets (for NAV total return).
(5) - Source: Bloomberg
chairman's statement
Introduction
I am pleased to present to you the interim financial statements
of the Company for the six month period ended 30 June 2017.
Performance and Market Conditions
The Company's Euro and Sterling Ordinary shares have returned
6.36% and 6.92% respectively on an absolute return basis for the
period under review. This represents a creditable outcome and is
ahead of the indices that the Board reviews in order to calibrate
performance of the Investment Vehicle Manager. Much of this
outperformance has been driven by the credit opportunities portion
of the Investment Vehicle's portfolio, reflecting asset allocation
decisions by the Investment Vehicle Manager during 2016 and early
2017. The performing credit portion of the portfolio has delivered
a positive, but less significant contribution to overall
performance, which is unsurprising given the ongoing tightness in
primary and secondary markets, continuing a theme that has been at
play for a number of financial periods. The Board does not expect
market conditions in our chosen markets to change materially in the
period up to 31 December 2017, although we continue to closely
monitor geopolitical developments in the UK and US as sources of
potential unexpected market risk events. The Investment Vehicle
Manager's Report presented elsewhere provides more detail as to
performance during the period.
Corporate Activities
The Company's performance over the period and in the prior
period has drawn the attention of new and existing investors, which
has resulted in a placing of treasury shares at the period end
amounting to approximately EUR100million. The Board expects to
continue to issue treasury shares to investors as demand and market
conditions indicate, whilst continuing to operate the Company's
quarterly tender programme under the revised terms which were
approved by shareholders at the Company's Annual General
Meeting.
Dividend payments
As previously announced on 19 May 2017, the directors have
resolved to increase the Company's dividend target to 5.5
pence/cents per share, payable quarterly, and that target revision
was implemented in respect of the Company's dividends payable
during Q3 of 2017. The Board expects to continue to meet this
dividend target for at least the next 12 month period, which is as
far as the Board forecasts future dividend payments.
Other Matters
As always, I would like to thank my fellow directors, the
portfolio management team at CVC Credit Partners, our advisors and
investment bankers for their support and wise counsel, and would
also like to extend thanks to all of our shareholders for your
continuing commitment to the Company.
Richard Michael Boléat
Chairman
21 September 2017
executive sUMMARY
Corporate summary
The Company is a closed-ended investment company limited by
shares, registered and incorporated in Jersey under the Companies
(Jersey) Law 1991 on 20 March 2013, with registration number
112635. The Company's share capital consists of Euro Shares and
Sterling Shares and is denominated in Euro and Sterling
respectively. The Company's Euro Shares and Sterling Shares are
listed on the Official List of the UK Listing Authority and
admitted to trading on the Main Market of the London Stock
Exchange. Details of the shares in issue are detailed within the
financial highlights section above.
The Company is self-managed and the Directors have invested the
net proceeds from share issues into Compartment A of an existing
European credit opportunities investment vehicle, CVC European
Credit Opportunities S.à r.l. (the "Investment Vehicle"), managed
by CVC Credit Partners Investment Management Limited (the
"Investment Vehicle Manager").
The Company is a member of the Association of Investment
Companies ("AIC") and is regulated by the Jersey Financial Services
Commission.
Significant events during the six months ended 30 June 2017
Placing of treasury shares
The Company completed the following sale of Sterling treasury
shares during the six months ended 30 June 2017:
-- On 6 March 2017, the Company sold 650,000 Sterling treasury
shares at a price of GBP1.0925 per share, raising gross proceeds of
GBP710,125.
-- On 8 March 2017, the Company sold 250,000 Sterling treasury
shares at a price of GBP1.0983 per share, raising gross proceeds of
GBP274,575.
-- In April 2017, the Company sold a total of 1,250,000 Sterling
treasury shares at a price of GBP1.1038 per share, raising gross
proceeds of GBP1,379,750.
-- On 8 May 2017, the Company sold 200,000 Sterling treasury
shares at a price of GBP1.1020 per share, raising gross proceeds of
GBP220,400.
-- On 19 May 2017, the Company sold 350,000 Sterling treasury
shares at a price of GBP1.1072 per share, raising gross proceeds of
GBP387,520.
Contractual quarterly tenders
The Company completed the following tenders under its
contractual quarterly tender mechanism during the six months ended
30 June 2017:
-- On 13 February 2017, 6,270,498 Euro Shares and 7,972,725
Sterling Shares were tendered under the December 2016 tender at a
price of EUR1.0441 and GBP1.0596 respectively.
-- On 15 May 2017, 5,543,631 Euro Shares and 6,965,625 Sterling
Shares were tendered under the March 2017 tender at a price of
EUR1.0679 and GBP1.0861 respectively.
All the shares tendered were transferred into the Company's name
and held in treasury.
Announcement of placing of treasury shares
On 30 June 2017, the Company announced it had agreed to sell
69,197,176 Sterling treasury shares at a price of GBP1.1207 per
share and 12,608,528 Euro treasury shares at a price of EUR1.0994
per share. The trade completed and the shares were sold on 4 July
2017. Please refer to note 14 for further detail.
Change to dividend target
On the 19 May 2017, the Board announced that it has revised the
Company's dividend target from 5 pence / 5 Euro cents per ordinary
share of no par value per annum, to target a dividend of 5.5 pence
/ 5.5 Euro cents per share per annum.
The first dividend to be declared under the new target was in
respect of the quarter ended 30 June 2017. Please refer to note 14
for further details.
Investment Objective and Policy
General
The investment objective and investment policy of the Investment
Vehicle are consistent with the investment objective and investment
policy of the Company. In the event that changes are made to the
investment objective or investment policy of the Company or
Investment Vehicle (including the investment limits and/or the
borrowing limit) the procedures set out in the section below
entitled "Material changes to the investment objective and policy
of the Company or the Investment Vehicle" will apply.
Company investment objective
The Company's investment objective is to provide shareholders
with regular income returns and capital appreciation from a
diversified portfolio of predominantly sub-investment grade debt
instruments.
Company investment policy
On the 3 April 2017, shareholders approved an amendment to the
Company's investment policy to allow the Investment Vehicle to make
primary investments in CVC Credit Partners managed structured
finance transactions. The prior investment policy of the Company
provided that a maximum of 7.5 per cent. of the Investment
Vehicle's Gross Assets would be invested in CLO Securities, with no
primary investments permitted to be made in CVC Credit Partners
managed structured finance transactions. The revised investment
policy is detailed below:
The Company's investment policy is to invest predominantly in
companies domiciled, or with material operations, in Western Europe
across various industries. The Company's investments are focused on
senior secured obligations of such companies but investments are
also made across the capital structure of such borrowers. The
Company pursues its investment policy by investing net placing
proceeds from share issues in the Investment Vehicle.
The investment policy of the Investment Vehicle is subject to
the following limits (the "investment limits"):
-- A minimum of 50 per cent. of the Investment Vehicle's gross
assets will be invested in senior secured obligations (which, for
the purposes of this investment limit, will include cash and cash
equivalents).
-- A minimum of 70 per cent. of the Investment Vehicle's gross
assets will be invested in obligations of companies/borrowers
domiciled, or with material operations, in Western Europe.
-- A maximum of 7.5 per cent. of the Investment Vehicle's gross
assets will be invested, at any given time, in obligations of a
single borrower subject to a single exception at any one time
permitting investment of up to 15 per cent. in order to participate
in a loan to a single borrower, provided the exposure is sold down
to a maximum of 7.5 per cent. within 12 months of acquisition.
-- A maximum of 7.5 per cent. of the Investment Vehicle's gross
assets will be invested in CLO securities.
-- A maximum of 25 per cent. of the Investment Vehicle's gross
assets will be invested in CVC Capital Portfolio Company debt
obligations calculated as invested cost as a percentage of the
Investment Vehicle's gross assets.
The Investment Vehicle is permitted to borrow up to an amount
equal to 100 per cent. of the NAV of the Investment Vehicle at the
time of borrowing (the "borrowing limit").
Company borrowing limit
The Company may borrow up to 15 per cent. of the NAV of the
Company for the sole purpose of purchasing or redeeming its own
shares otherwise than pursuant to contractual quarterly
tenders.
Investment strategy and approach
The Company gave effect to its investment policy by subscribing
for Preferred Equity Certificates, (the "PECs"), Series 4 and 5,
issued by the Investment Vehicle. Series 4 and 5 PECs are
denominated in Euro and Sterling respectively and are income
distributing.
The Investment Vehicle Manager's investment strategy for the
Investment Vehicle is to make loan or bond investments in companies
based on detailed fundamental analysis of the operations and market
position of each company and its capital structure.
The Investment Vehicle invests in the debt of larger companies
which offer a number of differing characteristics relative to the
broader market, including but not limited to:
(i) larger, more defensive market positions;
(ii) access to broader management talent;
(iii) multinational operations which may reduce individual
customer, sector or geographic risk and provide diverse cash
flow;
(iv) working capital and capital expenditure which can be
managed in the event of a slowdown in economic growth; and
(v) wider access to both debt and equity capital markets.
Based on the market opportunity and relative value, the
Investment Vehicle invests in a range of different credit
instruments across the capital structure of target companies
(including but not limited to senior secured, second lien and
mezzanine loans and senior secured, unsecured and subordinated
bonds).
Assets are sourced in both the new issue and secondary markets,
using the sourcing networks of the Investment Vehicle Manager and
CVC Group generally.
The Investment Vehicle Manager's access to deals is supported by
the network of contacts and relationships of its leadership team
and investment professionals, as well as the strong positioning of
the CVC Group in the European leveraged finance markets.
The Investment Vehicle Manager analyses the risk of credit loss
for each investment on the basis it will be held to maturity but
takes an active approach to the sale of investments once the
investment thesis has been realised.
The liquidity terms of the Investment Vehicle are also an
important factor considered in determining the composition of the
investment Portfolio.
Further information in respect to the Investment Vehicle Manager
portfolio and performance as at 30 June 2017 can be found in the
Investment Vehicle Manager Report which is incorporated within this
Half Yearly Financial Report.
Director interests
Information on each Director is shown below.
No Director has any other interest in any contract to which the
Company is a party and no Director has held or holds any management
or ordinary shares in the Company.
Principal risks and uncertainties
When considering the NAV total return of the Company, the Board
takes account of the risk which has been taken in order to achieve
that return. The Board has carried out a robust assessment of the
principal risks facing the Company including those which would
threaten its business model, future performance, solvency or
liquidity. The following risk factors have been identified and are
listed below:
-- Supply and demand
-- Investment portfolio concentration
-- Liquidity
-- Foreign exchange risk
-- Macro-economic factors
-- Capital management risks
The following are the principal risks relating to an investment
in the shares of the Company.
-- Shareholders have no right to have their shares redeemed or repurchased by the Company.
-- Contractual quarterly tenders are subject to certain
restrictions and so shareholders should not have an expectation
that all or any of the shares they make available for sale to the
Company will be purchased through the Contractual quarterly tender
facility.
-- The shares in the Company may trade at a discount to the NAV
per share of the relevant class of shares and shareholders may be
unable to realise their shares on the market at the NAV per share
or at any other price.
Information on these risks and how they are managed is given in
the Annual Financial Report for the year ended 31 December 2016. In
the view of the Board these principal risks and uncertainties are
as applicable to the remaining six months of the current financial
year as they were in the six months under review.
Events after the reporting date
The Directors are not aware of any developments that might have
a significant effect on the operations of the Company in subsequent
financial periods not already disclosed in this report or the
attached financial statements.
Going concern
Under the AIC Code of Corporate Governance ("AIC Code") and
applicable regulations, the Directors are required to satisfy
themselves that it is reasonable to assume that the Company is a
going concern from the date of approval of this Half Yearly
Financial Report.
After reviewing the Company's budget and cash flow forecast for
the next twelve months, the Directors are satisfied that, at the
time of approving these financial statements, no material
uncertainties exist that may cast significant doubt concerning the
Company's ability to continue for a period of at least twelve
months from the date of approval of the financial statements. The
Directors consider it is appropriate to adopt the going concern
basis in preparing this Half Yearly Financial Report.
Future strategy
The Board continues to believe that the investment strategy and
policy adopted by the Investment Vehicle is appropriate for and is
capable of meeting the Company's objectives.
The overall strategy remains unchanged and it is the Directors'
assessment that the Investment Vehicle Manager's resources are
appropriate to properly manage the Investment Vehicle's portfolio
in the current and anticipated investment environment.
Please refer to the Investment Vehicle Manager's report for
detail regarding performance to date of the Investment Vehicle's
investments and the main trends and factors likely to affect the
future development, performance and position of those
investments.
Board members
All the Directors are non-executive.
CHAIRMAN
Richard Michael Boléat (independent). Appointed 20 March
2013.
Richard qualified as a Chartered Accountant with Coopers &
Lybrand in the United Kingdom in 1987 and subsequently worked in
the Middle East, Africa and the United Kingdom for a number of
commercial and financial services groups, during which time he
acted as a buy-side high yield credit analyst for an Arabian
investment bank.
From 1996 he was a Principal of Channel House, a Jersey based
financial services group, which was acquired by Capita Group plc in
September 2005. Richard led their financial services client
practice in Jersey until September 2007.
He currently acts as a non-executive director of a number of
substantial collective investment and investment management
entities and is active in a number of asset classes including
global macro, super-senior corporate CDS, long/short equity, fund
of funds and EM real estate. He presently acts as Chairman of Yatra
Capital Limited, which is listed on Euronext and Funding Circle SME
Fund Limited and Phaunos Timber Fund Limited which are both listed
on the London Stock Exchange. He is personally regulated by the
Jersey Financial Services Commission in the conduct of financial
services business and is a member of the Alternative Investment
Management Association (AIMA), the International Corporate
Governance Network and the European Corporate Governance
Institute.
Directors
Mark Richard Tucker (independent). Appointed 20 March 2013.
In 1997 Mark joined Arborhedge Investments, Inc. (formally HFR
Investments, Inc.) a Chicago based, boutique broker dealer
specialising in the placement of hedge fund interests to
institutions globally. Mark served as the President and Chief
Executive Officer of Arborhedge until his return to Jersey in 2002,
after which he remained a director and shareholder until 2012.
Previously, Mark held a variety of retail and private banking roles
in Jersey with both HSBC and Cater Allen Bank.
In 1988 Mark relocated first to London, where he joined GNI
Limited in a financial futures business development role, and later
to New York where he was responsible for the alternative investment
program of Gresham Asset Management, Inc. and later for the asset
allocation and manager selection activities of Mitsui &
Company.
Mark is personally regulated by the Jersey Financial Services
Commission in the conduct of financial services business, and he is
an Associate of the Chartered Institute of Bankers, a Chartered
Fellow of the Chartered Institute for Securities and Investment and
a member of the Institute of Directors. Mark also serves as a
non-executive director to several other offshore structures.
David Alan Wood (independent). Appointed 20 March 2013.
David was a founding partner of CVC Cordatus (a predecessor to
CVC Credit Partners Group) in 2006, but retired in April 2012. He
was a member of CVC Credit Partners Advisory Board until April
2015. With 36 years of industry experience, David joined from
Deutsche Bank where he was Co-Head of European Leveraged Finance.
Prior to this, he was a Managing Director at JP Morgan/Chase
Manhattan where he worked in leveraged finance and corporate
banking. Mr Wood continues to sit on the CVC Credit Partners
Conflicts Committee.
investment vehicle manager's report
Summary
The Investment Vehicle Manager is pleased with the performance
of the portfolio for the six months ended 30 June 2017. Each
strategy performed to expectations and the Investment Vehicle
Manager remains optimistic about its ability to continue to grow
given the current flow of assets.
Portfolio
As at 30 June 2017, the Investment Vehicle portfolio was
invested in-line with investment policy and was diversified with 68
(31 December 2016: 67) issuers(1) across 30 (31 December 2016: 24)
different industries and 14 (31 December 2016: 16) different
countries, and had exposure of no more than 4.0% (31 December 2016:
3.7%) to any single issuer.
Portfolio Statistics(2)
As at As at
30 June 2017 31 December
2016
Percentage of Portfolio in Floating
Rate Assets 91.0% 88.6%
Percentage of Portfolio in Fixed
Rate Assets 9.0% 11.4%
Weighted Average Price(3) 95.2 91.8
Yield to Maturity 7.7% 7.4%
Current Yield 6.0% 6.7%
Weighted Average Fixed Rate Coupon 6.7% 7.3%
Weighted Average Floating Rate
plus Margin 5.2% 5.0%
5 Largest Issuers as at 30 June 2017
% of Gross
Issuer Assets Industry Country
Saur 4.0 Ecological France
Ambac 3.5 Finance U.S.
Ceva 3.0 Transport & Logistics UK
Cortefiel 2.9 Retail Spain
Tipico 2.8 Gaming Luxembourg
5 Largest Issuers as at 31 December 2016
% of Gross
Issuer Assets Industry Country
Ambac 3.7 Finance U.S.
Buildings & Real
Consolis 3.4 Estate France
Dell 3.2 Electronics U.S.
Broadcasting
Numericable 3.2 & Entertainment France
Buildings & Real
FCC 2.9 Estate Spain
5 Largest Industry Positions
as at 30 June 2017(1)
Retail Store 11.7%
Electronics 8.4%
Finance 8.4%
Leisure, Amusement, Motion Pictures,
Entertainment 7.5%
Broadcasting & Entertainment 6.9%
5 Largest Industry Positions
as at 31 December 2016(1)
Finance 11.4%
Electronics 10.3%
Retail Store 9.4%
Buildings & Real Estate 8.6%
Broadcasting & Entertainment 7.5%
Geographical Breakdown by issuer As at As at
country(4) 30 June 2017 31 December
2016
U.S. 23.5% 23.6%
France 20.2% 24.5%
UK 16.0% 11.8%
Spain 9.2% 10.1%
Germany 7.6% 6.2%
Luxembourg 7.1% 5.1%
Other 16.4% 18.7%
Currency Breakdown As at As at
30 June 2017 31 December
2016
EUR 45.7% 55.7%
USD 38.4% 30.2%
GBP 15.9% 14.1%
Asset Breakdown As at As at
30 June 2017 31 December
2016
Loans (1st Lien) 62.9% 57.2%
Senior Secured Bonds 9.2% 13.1%
Loans (2nd Lien) 7.6% 9.7%
PIK 2.8% 5.1%
Structured 4.5% 5.2%
Cash 12.2% 5.2%
Other 0.8% 4.5%
Performance
The total return (net of fees and including dividends
reinvested) for the period was 6.4% to Euro investors, and 6.9% to
Sterling investors. For the same period, the Credit Suisse Western
European HY Index hedged to Euro returned 4.09%, and the Credit
Suisse Western ELLI hedged to Euro returned 2.06%.
Throughout the period the portfolio opportunistically
participated in new issue primary, and actively managed exposures
in the performing segment, to take advantage of the strong market
technical. With the political uncertainty and national elections
during the first half of the year, the Investment Vehicle Manager
sought to reduce volatility within the Credit Opportunities segment
of the portfolio. The core income segment of the portfolio
delivered 1.3% to gross portfolio performance, and the Credit
Opportunities segment of the portfolio 6.5%.
Market Review and Outlook
European Leveraged Loan Market
Leveraged loan volume for H1 2017 totalled EUR57.9 billion, an
89% increase to H1 2016 at EUR30.6 billion. At the current rate, if
the rate of issuance continues in H2 2017, volumes for the
full-year would be the highest since 2007, when they were EUR162.6
billion.(5)
Refinancings (excluding recapitalisations) were the largest
percentage of deal flow by type in H1 2017, with the volume to the
end of June totalling EUR29.5 billion. This is an increase of more
than five times on H1 2016, and already greater than the full-year
2016 total of EUR24.2 billion. In terms of quarter on quarter, most
of it was in Q1 2017 at EUR21.6 billion, with Q2 2017 at EUR7.9
billion, which is the lowest quarterly amount since Q2 2016.(5)
The level of repricings have almost doubled in the last six
months to EUR51 billion, from EUR25.9 billion in H2 2016, and was
only EUR3.1 billion in H1 2016. Again, looking at the quarterly
split (Q1 2017 at EUR33 billion and Q2 2017 at EUR18 billion) the
H1 2017 tally has been dominated by Q1 2017.(5)
As the European leveraged credit market heads into H2 2017, a
supply/demand imbalance in both loans and bonds is expected to
continue to keep yields tight. The supply of assets is not low on
an absolute level with leveraged loan and bond volumes up 49% and
60% on the prior six months, rather, the strength of demand is
boosted by non-traditional leveraged investors. On the loan side,
pension and insurance managers are allocating more capital in these
markets via managed accounts, and multi-strategy fund managers are
increasing their loan allocations.(5)
In the primary market, YTM for new Term Loan B issues has fallen
at least 30 bps since the start of 2017, although the rate of
change has moderated in recent months. The rolling three-month
yield stood just below 4% in each of the last 3 months, resulting
in a quarterly average of 3.97%, slightly down from 4.03% in Q1
2017.(5)
High Yield Bond Market
HY new issue volume is on track to reach the 2014 level of
issuance of EUR72bn, which has been the highest since 2010, with
EUR46bn of paper hitting the market during H1 2017. This is almost
double the H1 2016 amount of EUR24bn and it is promising to see an
increase after two consecutive years of declining volumes. Yields
on single-B Term Loan B continued to decline to 4% in June 2017,
from 4.08% in March 2017.(5) This is also much lower than the 6.1%
seen at the end of 2016, as identified in the previous report.
Market Opportunity in Credit Opportunities & Special
Situations Strategies
Looking ahead to the rest of 2017 the Investment Vehicle Manager
is optimistic about opportunities in the credit markets. The
continued FX fluctuations and the seemingly relentless flow of
re-pricing activity during H1 2017 presented significant
opportunities for the Investment Vehicle Manager's Credit
Opportunities and Special Situations strategies. The Investment
Vehicle Manager believes that pockets of volatility, and continued
regulatory changes due to the changing geopolitical landscape, will
support its healthy pipeline of new investments. Examples of
opportunity-inducing events include:
- Repositioning of Central Banks;
- Monetary and fiscal policy changes in key economies, including the U.S and Europe;
- German and Italian parliamentary elections;
- Brexit negotiations between Britain and Brussels and its
impact on investment and growth on the UK economy; and
- Uncertainty around the sustainability of Italy's public debt.
In the Special Situations space, the Investment Vehicle Manager
continues to evaluate credits in the energy sector, particularly in
Europe where subsidies for renewable energy production and
infrastructure have been reigned in. Attention will also be given
to assets in the retail, shipping and the U.S. healthcare markets,
where fluctuating oil prices and changing regulatory regimes should
contribute to the asset flow and price volatility.
Whilst the Investment Vehicle Manager is of the belief that
defaults may take longer to materialise in the current climate,
acknowledgement is given to the Fed's interest rate rises during
2017 and the consequences this may have for over-levered credits.
By taking advantage of the CVC global network, the Investment
Vehicle Manager expects to be able to identify investment
opportunities and deploy additional capital both from
recapitalisations outside of technical defaults, and by stepping in
at the front end of restructurings.
Conclusion
The portfolio has once again outperformed broader market indices
despite significant market volatility caused by various external
factors. The combination of Performing Credit providing stable
yield exposure, alongside the higher yielding event driven Credit
Opportunities strategy, helps the Investment Vehicle Manager
deliver what it believes to be a balanced risk profile in differing
market environments.
Political uncertainty is set to continue in H2 2017, with the
continuation of the tough Brexit negotiations. President Trump's
continuing changes to economic and foreign policies will also be
keenly watched by investors. Despite the risks, our core scenario
is that global growth and inflation continue to pick up for the
rest of the year. Within fixed income, we expect European leveraged
loans to outperform, as stronger economic growth should support
corporate earnings provided that the ECB remains accommodative
(although on a lower basis) through the rest of 2017.
Going into H2 2017, the Investment Vehicle Manager continues to
focus on maintaining low NAV volatility and actively allocating to
new issue performing credits supported by strong Sponsors.
CVC Credit Partners Investment Management Limited
Investment Vehicle Manager
21 September 2017
1 Excludes 12 (31 December 2016: 18) structured finance
positions.
2 Note: All metrics exclude cash unless otherwise stated.
3 Average market price of the portfolio weighted against the
size of each position.
4 Excludes 12 (31 December 2016: 18) structured finance
positions.
5 Sources :a S&P Global Market Intelligence - LCD European
Quarterly
The indices referred to herein (including the Credit Suisse
Western European HY Index hedged to Euro and the Credit Suisse
Western ELLI hedged to Euro) are widely recognised, unmanaged
indices of market activity and have been included as general
indicators of market performance. There are significant differences
between the types of investments made or expected to be made by the
Investment Vehicle and the investments covered by the indices, and
the methodology for calculating returns. For example, the Credit
Suisse Western European HY Index is designed as an objective proxy
for the investable universe of the Western European high yield debt
market. Additionally, the Credit Suisse Western ELLI is designed to
mirror the investable universe of the Western European leveraged
loan market where the loans eligible for inclusion must be
denominated in US$ or Western European currencies and must have a
minimum outstanding amount of 100m (in local currency). In
contrast, CVC Credit Partners may have discretion whether to
reinvest such payments during any relevant commitment period.
Moreover, coupon payments received by the Investment Vehicle after
the expiration of any commitment period typically will not be
reinvested. It should not be assumed that the Investment Vehicle
will invest in any specific equity or debt investments, such as
those that comprise the indices, nor should it be understood that
there will be a correlation between the Investment Vehicle's
returns and those of the indices. It should not be assumed that
correlations to the indices based on historical returns will
persist in the future. No representation is made that the
Investment Vehicle will replicate the performance of any of the
indices. The indices are included for general, background
informational purposes only and recipients should use their own
judgment to appropriately weight or discount their relevance to the
Investment Vehicle .
Directors' Statement of Responsibilities
The Directors are responsible for preparing the Half Yearly
Financial Report in accordance with applicable Jersey law and
regulations.
The Directors confirm to the best of their knowledge that:
-- the unaudited condensed financial statements within the Half
Yearly Financial Report have been prepared in accordance with IAS
34 - Interim Financial Reporting, as adopted by the European Union
("EU") and give a true and fair view of the state of the affairs of
the Company as at 30 June 2017, as required by the FCA's Disclosure
Guidance and Transparency Rule ("DTR") 4.2.2R;
-- the Chairman's Statement, the Investment Vehicle Manager's
Report, the Executive Summary and the notes to the condensed
financial statements include a fair review of the information
required by:
a) DTR 4.2.7R, being an indication of important events that have
occurred during the six months ended 30 June 2017 and their impact
on the unaudited condensed financial statements; and a description
of the principal risks and uncertainties for the remaining six
months of the year; and
b) DTR 4.2.8R, being related party transactions that have taken
place during the six months ended 30 June 2017 and that have
materially affected the financial position or performance of the
Company during that period.
Richard Michael Boléat Mark Richard Tucker
Chairman Audit Committee Chairman
21 September 2017
independent review report to the members of cvc credit partners
european opportunities limited
Introduction
We have been engaged by CVC Credit Partners European
Opportunities Limited (the "Company") to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2017 which comprises the Condensed
Statement of Comprehensive Income, the Condensed Statement of
Financial Position, the Condensed Statement of Changes in Net
Assets, the Condensed Statement of Cash Flows, and the related
notes 1 to 15 to the condensed set of financial statements. We have
read the other information contained in the half-yearly financial
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK and Ireland) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the
company, for our work, for this report, or for the conclusions we
have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the half-yearly financial report in accordance with
the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
As disclosed in note 2, the annual financial statements of the
Company are prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union. The
condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with International
Accounting Standard 34, "Interim Financial Reporting", as adopted
by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2017 is not prepared, in all material respects, in accordance
with International Accounting Standard 34, as adopted by the
European Union and the Disclosure Guidance and Transparency Rules
of the United Kingdom's Financial Conduct Authority.
Ernst & Young LLP
London
21 September 2017
CONDENSED Statement of comprehensive income
For the six months ended 30 June 2017
Six months Six months
ended ended
30 June 30 June
2017 2016
(Unaudited) (Unaudited)
Notes EUR EUR
-------------------------------------- ------ ------------ --------------
Income
Investment income 3 9,737,677 14,301,129
Net gains / (losses) on investments
held at fair value through profit
or
loss 6 15,707,173 (2,705,681)
Foreign exchange loss on investments
held at fair value through profit
or loss 6 (7,209,075) (43,804,439)
Foreign exchange gain
on ordinary shares 7,204,361 43,859,430
Other net foreign currency exchange
loss (16,241) (21,944)
25,423,895 11,628,495
-------------------------------------- ------ ------------ --------------
Expenses
Operating expenses 4 (408,953) (561,920)
Partial termination fee (291,829) (644,326)
--------------------------------------- ------ ------------ --------------
(700,782) (1,206,246)
-------------------------------------- ------ ------------ --------------
Profit before finance
costs and taxation 24,723,113 10,422,249
--------------------------------------- ------ ------------ --------------
Bank charges (4,630) (1,606)
Share issue finance cost 4 (31,066) -
Finance costs - dividend
payment (8,941,379) (13,155,549)
--------------------------------------- ------ ------------ --------------
Profit/(loss) before
taxation 15,746,038 (2,734,906)
--------------------------------------- ------ ------------ --------------
Taxation - -
Increase/(decrease) in net assets
attributable to shareholders
from operations 15,746,038 (2,734,906)
--------------------------------------- ------ ------------ --------------
Earnings/(losses) per
Euro Share 10 EUR0.048516 EUR(0.006273)
--------------------------------------- ------ ------------ --------------
Earnings/(losses) per Sterling
Share (Sterling equivalent) 10 GBP0.035172 GBP(0.004548)
--------------------------------------- ------ ------------ --------------
All items in the above statement are derived from continuing
operations.
The Company has no items of other comprehensive income, and
therefore the increase / (decrease) in net assets attributable to
ordinary shareholders for the period is also the total
comprehensive income.
The notes form an integral part of these condensed financial
statements.
CONDENSED statement of financial position
As at 30 June 2017
30 June 31 December
2017 2016
(Unaudited) (Audited)
Notes EUR EUR
-------------------------------- --- ------ -------------- --------------
Assets
Cash and cash equivalents 1,324,393 1,567,742
Prepayments 47,297 50,185
Financial investments held
at fair value through profit
or loss 6 486,875,510 404,603,610
------------------------------------- ------ -------------- --------------
Total assets 488,247,200 406,221,537
------------------------------------- ------ -------------- --------------
Liabilities
Payables 7 (422,911) (695,258)
Trade payable - PECs purchased
awaiting settlement 7 (101,494,457) -
------------------------------------- ------ -------------- --------------
Total liabilities (101,917,368) (695,258)
------------------------------------- ------ -------------- --------------
Net assets attributable to
shareholders 11 386,329,832 405,526,279
------------------------------------- ------ -------------- --------------
The condensed financial statements were approved by the Board of
Directors on 21 September 2017 and signed on its behalf by:
Richard Michael Boléat Mark Richard Tucker
Chairman Audit Committee Chairman
The notes form an integral part of these condensed financial
statements.
CONDENSED statement of changes in net assets
For the six months ended 30 June 2017 (Unaudited)
Net assets
attributable
to shareholders
Note EUR
-------------------------------------------------- -----------------
As at 1 January 2017 405,526,279
--------------------------------------------- --- -----------------
Subscriptions arising from sale of treasury
shares 10 3,472,906
Redemption of shares 10 (31,211,030)
Increase in net assets attributable
to shareholders from operations 15,746,038
Net foreign currency exchange gain on
shares (7,204,361)
As at 30 June 2017 386,329,832
--------------------------------------------- --- -----------------
For the six months ended 30 June 2016 (Unaudited)
Net assets
attributable
to shareholders
Note EUR
-------------------------------------------- -----------------
As at 1 January 2016 580,242,493
--------------------------------------- --- -----------------
Subscriptions arising from conversion
of ordinary shares 10 3,972,469
Redemption of shares 10 (46,431,427)
Decrease in net assets attributable
to shareholders from operations (2,734,906)
Net foreign currency exchange gain on
shares (43,859,430)
As at 30 June 2016 491,189,199
--------------------------------------- --- -----------------
The notes form an integral part of these condensed financial
statements.
CONDENSED statement of cash flows
For the six months ended 30 June 2017
Six months Six months
ended ended
30 June 30 June
2017 2016
(Unaudited) (Unaudited)
Notes EUR EUR
-------------------------------------- ------ ------------- -------------
Cash inflow from operating
activities
Profit/(loss) from ordinary
activities before taxation 15,746,038 (2,734,906)
Adjustments to reconcile profit
before tax to net cash flows:
Net (gain)/loss on investments
held at fair value through
profit or loss 6 (15,707,173) 2,705,681
Foreign exchange loss on investments
held at fair value through
profit or loss 6 7,209,075 43,804,439
Foreign currency exchange gain
on ordinary shares 10 (7,204,361) (43,859,430)
Bank charges 4,630 1,606
Finance costs - dividend payment 8,941,379 13,155,549
8,989,588 13,072,939
-------------------------------------- ------ ------------- -------------
Changes in working capital
Decrease/(increase) in prepayments 2,888 (82,963)
Increase/(decrease) in payables 101,222,110 (651,868)
-------------------------------------- ------ ------------- -------------
Cash provided by operations 110,214,586 12,338,108
-------------------------------------- ------ ------------- -------------
Net (payments)/proceeds from
(subscription)/redemption of
investments (PECs) 6 (73,773,802) 42,370,638
Net cash provided by operating
activities 36,440,784 54,708,746
-------------------------------------- ------ ------------- -------------
Financing activities
Proceeds from issuance of ordinary
shares 10 3,472,906 3,972,469
Payments for redemption of
ordinary shares 10 (31,211,030) (46,431,427)
Dividend paid (8,941,379) (13,155,549)
Bank charges paid (4,630) (1,606)
-------------------------------------- ------ ------------- -------------
Net cash (used in) / provided
by financing activities (36,684,133) (55,616,113)
-------------------------------------- ------ ------------- -------------
Net decrease in cash and cash
equivalents in the period (243,349) (907,367)
-------------------------------------- ------ ------------- -------------
Cash and cash equivalents at
beginning of the period 1,567,742 1,484,546
Cash and cash equivalents at
the end of the period 1,324,393 577,179
-------------------------------------- ------ ------------- -------------
The notes form an integral part of these condensed financial
statements.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1. General information
The Company was incorporated on 20 March 2013 and is registered
in Jersey as a closed-ended Investment Company. Euro Shares and
Sterling Shares were admitted to the Official List of the UK
Listing Authority and admitted to trading on the Main Market of the
London Stock Exchange on 25 June 2013.
The Company's registered address is IFC1, The Esplanade, St
Helier, Jersey, JE1 4BP.
2. Accounting policies
The Annual Financial Report is prepared in accordance with the
Disclosure Guidance and Transparency Rules of the FCA and with
International Financial Reporting Standards ("IFRS") as adopted by
the European Union which comprise standards and interpretations
approved by the International Accounting Standards Board, and
interpretations issued by the International Financial Reporting
Standards and Standing Interpretations Committee as approved by the
International Accounting Standards Committee which remain in
effect. The Half Yearly Financial Report has been prepared in
accordance with International Accounting Standards (IAS) 34 -
Interim Financial Reporting. They have also been prepared using the
same accounting policies applied for the year ended 31 December
2016 Annual Financial Report, which was prepared in accordance with
IFRS.
The Half Yearly Financial Report has been prepared under a going
concern basis. After reviewing the Company's budget and cash flow
forecast for the next financial period, the Directors are satisfied
that, at the time of approving the financial statements, it is
appropriate to adopt the going concern basis in preparing the
financial statements.
There have been no changes in accounting policies during the
period. The accounting policies in respect of financial instruments
are set out below at 2.2 due to the significance of financial
instruments to the company.
2.1. Segmental reporting
The Directors view the operations of the Company as one
operating segment, being investment holding. All significant
operating decisions are based upon analysis of the Company's
investments as one segment. The financial results from this segment
are equivalent to the financial results of the Company as a whole,
which are evaluated regularly by the chief operating decision-maker
(the Board with insight from the Investment Vehicle Manager).
2.2 Financial instruments
Financial assets
(a) Classification
The Company classifies its investments as financial assets at
fair value through profit or loss. These are financial instruments
held for investment purposes. Financial assets also include cash
and cash equivalents as well as other payables and receivables.
Financial assets designated at fair value through profit or loss
at inception
Financial assets designated at fair value through profit or loss
at inception are financial instruments that are not classified as
held for trading but are managed, and their performance is
evaluated on a fair value basis in accordance with the Company's
documented investment strategy.
The Company's policy requires the Investment Vehicle Manager and
the Board to evaluate the information about these financial assets
on a fair value basis together with other related financial
information.
(b) Recognition, measurement and derecognition
Purchases and sales of investments are recognised on the trade
date - the date on which the Company commits to purchase or sell
the investment. Financial assets at fair value through profit or
loss are measured initially and subsequently at fair value.
Transaction costs are expensed as incurred and movements in fair
value are recorded in the Statement of Comprehensive Income.
Financial assets are derecognised when the rights to receive
cash flows from the investments have expired or the Company has
transferred substantially all risks and rewards of ownership.
(c) Fair value estimation
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The Company holds PECs
issued by the Investment Vehicle. These investments are not listed
or quoted on any securities exchange and are not traded regularly
and on this basis no active market exists.
The Company relies on the board of the Investment Vehicle making
fair value estimates of an equivalent basis to those that would be
made under IFRS. As at 30 June 2017, the Audit Committee reviewed
the valuation of Investment Vehicle investments and scrutinised
fair value estimates used to gain assurances as to the
appropriateness and robustness of the valuation methodology applied
by the Investment Vehicle to its underlying portfolio assets and
hence to the Company investments in the Investment Vehicle. The
Directors then incorporated those fair value estimates into the
Company's Statement of Financial Position.
(d) Valuation process
The Directors have interviewed representatives of the Investment
Vehicle Manager in order to verify for themselves the composition
of the NAV of the PECs as of the Statement of Financial Position
date.
The Directors are in ongoing communications with the Investment
Vehicle Manager and hold meetings on a timely basis to discuss
performance of the Investment Vehicle and its underlying portfolio
and in addition review monthly investment performance reports. The
Directors analyse the Investment Vehicle portfolio in terms of both
investment mix and fair value hierarchy and consider the impact on
the valuation at both the PECs and Investment Vehicle portfolio of
general credit conditions and more specifically credit events in
the European corporate environment.
PECs
The PECs are valued by the Directors, taking into consideration
a range of factors including the audited NAV of the Investment
Vehicle and other relevant available information, including the
review of available financial and trading information of the
Investment Vehicle and of its underlying portfolio, price of recent
transactions of PECs redeemed, (if any), and advice received from
the Investment Vehicle Manager and such other factors as the
Directors, in their sole discretion, deem relevant in considering a
positive or negative adjustment to the valuation.
The estimated fair values may differ from the values that would
have been realised had a ready market existed and the difference
could be material.
The fair value of the investment is reassessed on an ongoing
basis by the Board.
Investment Vehicle Portfolio
The Directors also discuss the Investment Vehicle Manager's
monthly valuation process, to understand the methodology regarding
valuation of Level 3 debt securities and collateralised loan
obligations ("CLOs") held at the Investment Vehicle portfolio,
which includes discussion on the assumptions used and significant
fair value changes during the period.
Investments in debt securities for which limited broker quotes
and for which no other evidence of liquidity exists are classified
as Level 3. These are then valued by considering in detail the
limited broker quotes available for evidence of outliers (which may
skew the average) which, if existent, are then removed, and then by
calculating the average of the remaining quotes. If there are no
broker quotes, the Investment Vehicle Manager produces a pricing
memorandum for the Compartment drawing on the International Private
Equity Valuation guidelines, which is discussed, reviewed and
accepted by the board of the Investment Vehicle and the independent
service provider.
Investments in CLOs are primarily valued based on the bid price
as provided by the third party pricing service, and may be amended
following consideration of the Net Assets Value ("NAV") published
by the administrator of the CLOs. Furthermore, such a NAV is
adjusted when necessary, to reflect the effect of the time passed
since the calculation date, liquidity risk, limitations on
redemptions and other factors. Depending on the fair value level of
a CLO's assets and liabilities and on the adjustments needed to the
NAV published by that CLO, the Compartment (being Compartment A of
the Investment Vehicle) classifies the fair value of these
investments as Level 3.
If the Investment Vehicle Manager and the independent service
provider have difficulty in establishing an agreed upon valuation
for an asset, they will discuss and agree alternative valuation
methods.
Financial liabilities
(e) Classification
The Company classifies its ordinary shares as financial
liabilities held at amortised cost. Financial liabilities also
include payables which are also held at amortised cost.
(f) Recognition, measurement and derecognition
Financial liabilities are recognised initially at fair value
plus any directly attributable incremental costs of acquisition or
issue and are subsequently carried at amortised cost. Financial
liabilities are derecognised when the obligation specified in the
contract is discharged, cancelled or expires.
Ordinary shares are carried at amortised cost, being the
carrying amount of ordinary share value at which investors have the
opportunity to partially tender their shareholding in accordance
with the Company's quarterly contractual tender facility.
Gains and losses are recognised in the Statement of
Comprehensive Income when the liabilities are derecognised.
3. Investment income
Six months Six months
ended ended
30 June 30 June
2017 2016
(Unaudited) (Unaudited)
EUR EUR
Investment income 9,737,270 14,199,372
Bank interest income 407 -
Other income - 101,757
-------------------------- ------------ ------------
Total investment income 9,737,677 14,301,129
-------------------------- ------------ ------------
Other income of EURnil (30 June 2016: EUR101,757) relates to
income receivable from CVC Credit Partners Investment Services
Management Limited (the "Corporate Services Manager") for
reimbursement of share issue costs and AIFMD marketing legal costs
paid by the Company on behalf of the Corporate Services Manager.
Please refer to note 4.
4. Operating expenses
Six months Six months
ended ended
30 June 30 June
2017 2016
(Unaudited) (Audited)
EUR EUR
Administration fees 91,506 94,156
Directors' fees (see note
5) 92,203 103,188
Regulatory fees 26,862 27,141
Audit fees 30,600 30,600
Non-audit fees - interim
review services 10,200 10,200
Professional fees (*) 40,639 177,803
Brokerage fees 22,735 39,205
Registrar fees 30,229 46,569
Sundry expenses 63,979 33,058
---------------------------- ------------ -----------
Total operating expenses 408,953 561,920
---------------------------- ------------ -----------
The costs and expenses of the sale of treasury shares
attributable to the Company have been expensed in the Statement of
Comprehensive Income and amounted to a total of EUR31,066 (30 June
2016: EUR nil).
(*) Note that EURnil (30 June 2016: EUR101,757) of professional
fees relate to share issue costs and AIFMD marketing legal costs
paid by the Company on behalf of the Corporate Services Manager.
Total expenses of EURnil (30 June 2016: EUR101,757), have been
recharged to the Corporate Services Manager.
5. Directors' fees and interests
Director fees are as follows:
Richard Boleat (Chairman): GBP65,000 per annum
Mark Tucker: GBP50,000 (inclusive of GBP6,250 for his service as
Audit Committee Chairman)
David Wood: GBP42,500 per annum
The Company has no employees. Director's fees payable as at 30
June 2017 were EURnil (31 December 2016: EURnil).
None of the Directors hold shares in the Company. David Wood has
several investments in a number of CVC entities.
No pension contributions were payable in respect of any of the
Directors.
CVC Credit Partners Group has established an independent
sub-committee (the "Independent Sub-committee") of independent
directors drawn from its group board and the boards of certain of
its funds and investment vehicles for the purpose of providing
review and guidance to the relevant investment committee with
respect to situations where there is the potential for (or
perception of) a material conflict of interest.
The Independent Sub-committee currently consists of two
independent Directors from CVC Investment Services' board of
directors (being Douglas Maccabe and Stephen Linney), and David
Wood. Any such conflict is required to be presented to the
Independent Sub-committee by the relevant portfolio manager and, if
necessary, CVC Credit Partners Group's managing partner and/or
chief investment officer.
In 2016, Trust Associates were engaged to perform an interim
evaluation on the effectiveness of the Board and concluded that
David Wood's appointment on the Independent Sub Committee is not
deemed to be material. The Board discussed Mr Wood's independence
with regard to the AIC's guidance on this matter and concluded that
Mr Wood is independent.
6. Financial Investments held at fair value through profit or
loss
30 June 31 December
2017 2016
(Unaudited) (Audited)
EUR EUR
PECs - Unquoted
investment 486,875,510 404,603,610
------------------ ------------ ------------
During the period, the Company subscribed for 12,526,467.90 Euro
PECs (31 December 2016: nil) and 71,475,899.28 Sterling PECs (31
December 2016: nil) issued by the Investment Vehicle.
During the period, nil (31 December 2016: 3,448,301.83) Euro
PECs were converted into nil Sterling PECs (31 December 2016:
2,584,326.95) and nil Sterling PECs (31 December 2016: 656,205.39)
were converted into nil Euro PECs (31 December 2016: 866,070.85) as
part of the monthly share conversion process. 11,731,093 Euro PECs
(31 December 2016: 63,439,573.00) and 14,837,291 (31 December 2016:
57,227,653.00) Sterling PECs, were redeemed as part of the
Quarterly Contractual Tender.
As at 30 June 2017, the Company held 128,510,840.94 (31 December
2016: 127,715,466.04) Euro PECs and 269,652,672.94 (31 December
2016: 213,014,064.66) Sterling PECs. Please refer below for
reconciliation of PECs from 1 January 2016:
Compartment A
Euro Sterling
Date Transaction type PECs PECs
As at 1 January
2016 193,737,270.02 268,313,596.10
--------------------------------------- ---------------- ----------------
01/01/2016 Quarterly tender (29,012,049.00) (260,363.00)
29/01/2016 Monthly conversion (2,577,193.91) 1,881,536.18
29/01/2016 Monthly conversion 29,750.49 (21,719.99)
29/02/2016 Monthly conversion 693,049.73 (523,882.33)
29/02/2016 Monthly conversion (371,578.48) 280,879.41
31/03/2016 Monthly conversion 139,917.80 (108,067.57)
01/04/2016 Quarterly tender (117,208.00) (9,896,222.00)
29/04/2016 Monthly conversion (151,348.76) 118,697.71
30/06/2016 Monthly conversion 3,352.83 (2,535.50)
01/07/2016 Quarterly tender (27,230,253.00) (7,727,865.00)
30/09/2016 Monthly conversion (3,425.89) 2,871.51
01/10/2016 Quarterly tender (7,080,063.00) (39,343,203.00)
30/11/2016 Monthly conversion (247,583.95) 218,994.10
30/12/2016 Monthly conversion (97,170.84) 81,348.04
As at 31 December 2016 127,715,466.04 213,014,064.66
--------------------------------------- ---------------- ----------------
02/01/2017 Quarterly tender (6,227,806.00) (7,920,070.00)
08/03/2017 PEC subscription - 643,093.56
08/03/2017 PEC subscription - 248,155.42
03/04/2017 Quarterly tender (5,503,287.00) (6,917,221.00)
17/04/2017 PEC subscription - 501,278.29
17/04/2017 PEC subscription - 250,638.69
17/04/2017 PEC subscription - 250,638.69
17/04/2017 PEC subscription - 250,638.69
19/05/2017 PEC subscription - 349,180.30
19/05/2017 PEC subscription - 198,594.10
30/06/2017 PEC subscription 12,526,467.90 68,783,681.54
As at 30 June
2017 128,510,840.94 269,652,672.94
--------------------------------------- ---------------- ----------------
The Investment Vehicle's investment objective is to provide
investors with regular income returns and capital appreciation from
a diversified portfolio of sub-investment grade debt instruments.
The Company is entitled to receive income distributions every
quarter, which will equate to not less than 75% of the net income
of the Company's investment in the Investment Vehicle.
The Investment Vehicle Manager pursues the Investment Vehicle's
investment policy subject to the Investment Vehicle's Investment
Limits and Borrowing Limit as explained in the Executive
Summary.
Fair value hierarchy
IFRS 13 'Fair Value Measurement' requires an analysis of
investments valued at fair value based on the reliability and
significance of information used to measure their fair value.
The Company categorises its financial assets according to the
following fair value hierarchy detailed in IFRS 13, that reflects
the significance of the inputs used in determining their fair
values;
Level 1: Quoted market price (unadjusted) in an active market
for an identical instrument.
Level 2: Valuation techniques based on observable inputs, either
directly (i.e., as prices) or indirectly (i.e., derived from
prices). This category includes instruments valued using: quoted
market prices in active markets for similar instruments; quoted
prices for identical or similar instruments in markets that are
considered less than active; or other valuation techniques where
all significant inputs are directly or indirectly observable from
market data.
Level 3: Valuation techniques using significant unobservable
inputs. This category includes all instruments where the valuation
technique includes inputs not based on observable data and the
unobservable variable inputs have a significant effect on the
instrument's valuation. This category includes instruments that are
valued based on quoted prices for similar instruments where
significant unobservable adjustments or assumptions are required to
reflect differences between the instruments.
Level Level Level
As at 30 June 2017 1 2 3 Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
EUR EUR EUR EUR
Financial assets
------------ ------------ -------------- --------------
Financial investments
held at fair value
through profit and
loss - - 486,875,510 486,875,510
------------ ------------ -------------- --------------
Financial liabilities
------------ ------------ -------------- --------------
Ordinary shares (*) 387,980,824 - - 387,980,824
------------ ------------ -------------- --------------
Level Level Level
1 2 3 Total
As at 31 December
2016 (Audited) (Audited) (Audited) (Audited)
EUR EUR EUR EUR
Financial assets
------------ ----------- -------------- --------------
Financial investments
held at fair value
through profit and
loss - - 404,603,610 404,603,610
------------ ----------- -------------- --------------
Financial liabilities
------------ ----------- -------------- --------------
Ordinary shares (*) 391,171,161 - - 391,171,161
------------ ----------- -------------- --------------
* - Please note for disclosure purposes only, ordinary shares
have been disclosed at fair value using the quoted price in
accordance with IFRS 13. As disclosed in note 2.2, the Company
classifies its ordinary shares as financial liabilities held at
amortised cost.
Level 3 reconciliation - Compartment A PECs
The following table shows a reconciliation of all movements in
the fair value of financial instruments categorised within Level 3
between the beginning and the end of the reporting period.
30 June
2017
(Unaudited)
EUR
--------------------------------------- --- --- -------------
Balance as at 1 January 2017 404,603,610
------------------------------------------------- -------------
Purchases of investments (PECs) 104,936,106
Subscriptions arising from conversion -
of investments (PECs)
Redemption proceeds arising from -
conversion of investments (PECs)
Redemption proceeds arising from
quarterly tenders of investments
(PECs) (31,162,304)
Net gains on investments held at
fair value 15,707,173
Foreign exchange loss on investments
held at fair value (7,209,075)
Balance as at 30 June 2017 486,875,510
------------------------------------------------- -------------
Change in unrealised gain / (loss)
related to investments still held
at six months ended 30 June 2017 15,707,173
------------------------------------------------- -------------
During the six months ended 30 June 2017, there were no
reclassifications between levels of the fair value hierarchy.
31 December
2016
(Audited)
EUR
--------------------------------------- --- --- --------------
Balance as at 1 January 2016 579,495,831
------------------------------------------------- --------------
Purchases of investments (PECs) -
Subscriptions arising from conversion
of investments (PECs) 4,350,437
Redemption proceeds arising from
conversion of investments (PECs) (4,405,259)
Redemption proceeds arising from
quarterly tenders of investments
(PECs) (132,973,774)
Net gains on investments held at
fair value 9,756,573
Foreign exchange loss on investments
held at fair value (51,620,198)
Balance as at 31 December 2016 404,603,610
------------------------------------------------- --------------
Change in unrealised gain / (loss)
related to investments still held
at year ended 31 December 2016 9,140,977
------------------------------------------------- --------------
During year ended 31 December 2016, there were no
reclassifications between levels of the fair value hierarchy.
Quantitative information of significant unobservable inputs -
Level 3 - PECs
30 June
Range /
2017 Valuation Unobservable weighted
Description (Unaudited) technique input average
EUR
------------- ------------- ----------- ------------- ----------
Discount
Adjusted for lack
Net Asset of
PECs 486,875,510 Value liquidity 0-3%
31 December
Range /
2016 Valuation Unobservable weighted
Description (Audited) technique input average
EUR
------------- ------------ ----------- -------------- ----------
Adjusted Discount
Net Asset for lack
PECs 404,603,610 Value of liquidity 0-3%
The Board believes that it is appropriate to measure the PECs at
the NAV of the investments held at the Investment Vehicle, adjusted
for percentage holding of PECs in the Investment Vehicle.
Sensitivity analysis to significant changes in unobservable
inputs within Level 3 hierarchy - Level 3 - PECs
The significant unobservable inputs used in the fair value
measurement categorised within Level 3 of the fair value hierarchy
together with a quantitative sensitivity analysis as at 30 June
2017 and comparative are as shown below:
As at 30 June 2017 (Unaudited)
Description Input Sensitivity Effect on
used fair value
EUR
------------- -------------------- ------------ ------------
Discount for
PECs lack of liquidity 3% 14,606,265
------------- -------------------- ------------ ------------
As at 31 December 2016 (Audited)
Description Input Sensitivity Effect on
used fair value
EUR
------------- -------------------- ------------ ------------
Discount for
PECs lack of liquidity 3% 12,138,108
------------- -------------------- ------------ ------------
Please refer to note 2.2 for valuation methodology of PECs.
7. Payables
30 June 31 December
2017 2016
(Unaudited) (Audited)
EUR EUR
Administration fees (28,071) (21,829)
Audit fees (41,717) (71,400)
Partial termination fee
payable (288,409) (535,973)
Other payables (64,714) (66,056)
--------------------------- ------------ ------------
Total payables (422,911) (695,258)
--------------------------- ------------ ------------
Partial termination fee expense of EUR291,829 (31 December 2016:
EUR1,553,559) was incurred during the period, of which EUR288,409
(31 December 2016: EUR535,973) is payable to the Corporate Services
Manager as at 30 June 2017. In the case of any shareholder
tendering shares through a contractual quarterly tender, the
Company becomes liable to pay a partial termination fee to the
Corporate Services Manager and records an expense in accordance
with the prospectus. A fee is built into the tender price of 1% of
the placing price of the contractual quarterly tender facility to
cover this partial termination fee. No further partial termination
fees will be payable beyond March 2018, at which point the entire
1% fee built into the tender price in respect of tenders beyond
that date will accrue to the Company.
Trade payable - PECs purchased awaiting settlement of
EUR101,494,457 (31 December 2016: EURnil) represent trade payables
for Euro PECs (EUR13,758,423) and Sterling PECs (GBP76,974,939
(Euro equivalent EUR87,736,034) purchased that have been contracted
for but not yet settled on the Statement of Financial Position
date.
As at 30 June 2017, the Company's obligation to subscribe and
the Investment Vehicle's obligation to issue PECs in the amount set
out above is conditional on the receipt by the Company of the same
(net) amount in subscription for its shares by certain investors
pursuant to a contract for sale (the "Condition"). The Condition
was satisfied on 4 July 2017. Refer to note 14 for further detail
of the sale of Euro and Sterling treasury shares subsequent to the
period ended 30 June 2017, settled on the 4 July 2017.
8. Contingent liabilities
As at 30 June 2017, the Company had no contingent liabilities
(31 December 2016: EURnil).
9. Stated capital
Number Number
of Stated of Stated
shares capital shares capital
30 June 30 June 30 June 30 June
2017 2017 2016 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
EUR EUR
-------------------
Management shares 2 - 2 -
-------------------- ------------ ------------ ------------ ------------
Management shares are non-redeemable, have no par value and no
voting rights, and also no profit allocated to them for the
earnings per share calculation.
10. Ordinary shares
Number Number
of Stated of Stated
shares(1) capital shares(1) capital
30 June 30 June 30 June 30 June
2017 2017 2016 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
EUR EUR
Euro Shares 117,147,455 117,242,303 163,868,488 165,018,505
Sterling Shares 202,610,969 231,178,183 261,941,370 317,496,662
------------ ------------ ------------ ------------
Total 319,758,424 348,420,486 425,809,858 482,515,167
----------------- ------------ ------------ ------------ ------------
(1) - Excludes 110,001,299 (30 June 2016: 63,631,844) Euro
Shares and 70,239,838 (30 June 2016: 10,603,193) Sterling Shares
held as treasury shares.
Total
(Unaudited)
EUR
Balance as at 1 January 2017 383,362,971
-------------------------------- -------------
Subscriptions arising from
sale of treasury shares 3,472,906
Redemption proceeds arising
from quarterly tenders of
shares (31,211,030)
Foreign currency exchange
gain on shares (7,204,361)
-------------------------------- -------------
Balances as at 30 June 2017 348,420,486
-------------------------------- -------------
Total
(Unaudited)
EUR
Balance as at 1 January 2016 568,833,555
-------------------------------- -------------
Subscriptions arising from
conversion of shares 3,972,469
Redemption proceeds arising
from conversion of shares (4,042,049)
Redemption proceeds arising
from quarterly tenders of
shares (42,389,378)
Foreign currency exchange
gain on shares (43,859,430)
-------------------------------- -------------
Balances as at 30 June 2016 482,515,167
-------------------------------- -------------
The Company has two classes of ordinary shares, being Euro
Shares and Sterling Shares.
Each Euro Share holds 1 voting right, and each Sterling Share
holds 1.17 voting rights.
As at 30 June 2017, the Company held 117,147,455 Euro Shares
(exclusive of 110,001,299 Euro treasury shares) (30 June 2016:
163,868,488 Euro Shares (exclusive of 63,631,844 Euro treasury
shares), 31 December 2016: 128,961,584 Euro Shares (exclusive of
98,187,170 Euro treasury shares)) and 202,610,969 Sterling Shares
(exclusive of 70,239,838 Sterling treasury shares) (30 June 2016:
261,941,370 Sterling Shares (exclusive of 10,603,193 Sterling
treasury shares), 31 December 2016: 214,849,319 Sterling Shares
(exclusive of 58,001,488 Sterling treasury shares)).
Placing of treasury shares
The Company completed the sale of 2,700,000 Sterling treasury
shares during the six months ended 30 June 2017.
Voluntary conversion
The Company offers a monthly conversion facility pursuant to
which holders of ordinary shares of one class may convert such
shares into ordinary shares of any other class, subject to
regulatory considerations as detailed in the prospectus.
Such conversion will be effected on the basis of the ratio of
the NAV per class to be converted (calculated in Euro less the
costs of effecting such conversion and adjusting any currency
hedging arrangements and taking account of dividends resolved to be
paid), to the NAV per class of the shares into which they will be
converted (also calculated in Euro), in each case on the relevant
conversion calculation date being the first business day of the
month. During the period nil (30 June 2016, 3,127,742, 31 December
2016: 3,479,320) Euro Shares were converted into nil (30 June 2016:
2,302,213, 31 December 2016: 2,608,457) Sterling Shares and nil (30
June 2016: 661,630, 31 December 2016: 661,630) Sterling Shares were
converted into nil (30 June 2016: 872,880, 31 December 2016:
872,880) Euro Shares.
Contractual quarterly tender facility
As the Company has been established as a closed-ended vehicle,
there is no right or entitlement attaching to the ordinary shares
that allows them to be redeemed or repurchased by the Company at
the option of the Shareholder. The Company has, however,
established a contractual quarterly tender facility that enables
shareholders to tender their shares in the Company in accordance
with a stated contracted mechanism.
The Directors believe that the Company's contractual quarterly
tender facility should provide shareholders with additional
liquidity when compared with other listed closed-ended investment
companies.
The offer of contractual quarterly tenders is subject to annual
Shareholder approval and subject to the terms, conditions and
restrictions as set out in the prospectus. The Company is subject
to annual Shareholder approval to tender each quarter for up to
24.99 per cent. of the shares of such class in issue at the
relevant quarter record date, (being the date on which the number
of shares then in issue will be recorded for the purposes of
determining the restrictions), subject to a maximum annual limit of
50 per cent. of the shares of such class in issue.
However, it is important to note that contractual quarterly
tenders, if made, are contingent upon certain factors including,
but not limited to, the Company's ability to finance tender
purchases through submitting redemption requests to the Investment
Vehicle to redeem a pro rata amount of Company Investment Vehicle
Interests.
Factors, including restrictions at the Investment Vehicle level
on the amount of PECs which can be redeemed, may mean that
sufficient Company Investment Vehicle Interests cannot be redeemed
and, consequently, tender purchases in any given quarter may be
scaled back on a pro rata basis.
Shareholders should therefore have no expectation of being able
to tender their shares to the Company successfully on a quarterly
basis.
In addition to the contractual quarterly tender facility, the
Directors seek annual Shareholder approval to grant them the power
to make ad hoc market purchases of Shares. If such authority is
subsequently granted, the Directors will have complete discretion
as to the timing, price and volume of shares to be purchased.
Shareholders should not place any reliance on the willingness or
ability of the Directors so to act.
In the absence of the availability of the contractual quarterly
tender facility shareholders wishing to realise their investment in
the Company will be required to dispose of their shares on the
stock market.
Accordingly, shareholders' ability to realise their investment
at any particular price and/or time may be dependent on the
existence of a liquid market in the shares.
During the six months ended 30 June 2017, 11,814,129 Euro Shares
(30 June 2016: 29,328,354, 31 December 2016: 63,883,680) and
14,938,350 Sterling Shares (30 June 2016: 10,228,721, 31 December
2016: 57,627,016) were redeemed as part of the contractual
quarterly tender facility and held by the Company in the form of
treasury shares. Refer to page 5 for details. Treasury shares do
not carry any right to attend or vote at any general meeting of the
Company. In addition, the contractual quarterly tenders and the
voluntary conversion facility are not available in respect of
Treasury shares.
As at 30 June 2017, 110,001,299 (30 June 2016: 63,631,844, 31
December 2016: 98,187,170) Euro Shares and 70,239,838 Sterling
Shares (30 June 2016: 10,603,193, 31 December 2016: 58,001,488)
were held as treasury shares.
Dividends
The ordinary shares of each class carry the right to receive all
income of the Company attributable to such class of ordinary share,
and to participate in any distribution of such income made by the
Company and within each such class such income shall be divided
pari passu among the shareholders in proportion to the
shareholdings of that class.
Please refer below for amounts recognised as dividend
distributions to ordinary shareholders in the period ended 30 June
2017.
Ex-dividend Payment
date date GBP equivalent EUR
Euro - EUR0.025
per share(1) 04/02/2016 26/02/2016 - 4,091,783
Sterling - GBP0.025
per share(1) 04/02/2016 26/02/2016 6,803,607 8,328,976
Euro - EUR0.025
per share(1) 14/07/2016 05/08/2016 - 3,411,039
Sterling - GBP0.025
per share(1) 14/07/2016 05/08/2016 6,353,879 7,778,419
Euro - EUR0.0125
per share(1) 03/11/2016 25/11/2016 - 1,616,371
Sterling - GBP0.0125
per share(1) 03/11/2016 25/11/2016 2,681,825 3,283,090
Euro - EUR0.0125
per share(2) 02/02/2017 24/02/2017 - 1,533,639
Sterling - GBP0.0125
per share(2) 02/02/2017 24/02/2017 2,585,957 3,006,693
Euro - EUR0.0125
per share(2) 04/05/2017 26/05/2017 - 1,464,343
Sterling - GBP0.0125
per share(2) 04/05/2017 26/05/2017 2,525,762 2,936,704
(1) - Recognised in the year ended 31 December 2016
(2) - Recognised in the period ended 30 June 2017
Please refer to note 14 for further information subsequent to
the reporting period.
Earnings per share
30 June 30 June 30 June 30 June
2017 2017 2016 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GBP EUR GBP EUR
Euro Shares
Increase/decrease in
net assets for the
period - 5,817,243 - (1,030,678)
Earnings/(losses)
per share - 0.048516 - (0.006273)
Sterling Shares
Increase/(decrease)
in net assets for the
period 7,197,908 9,928,795 (1,235,485) (1,704,228)
Earnings/(losses)
per share 0.035172 0.048516 (0.004548) (0.006273)
Earnings per share have been calculated on a weighted average
basis. The weighted average number of ordinary shares held during
the six months ended 30 June 2017 was 324,544,463 (30 June 2016:
435,894,524), comprising 119,903,957 (30 June 2016: 163,986,488)
Euro Shares and 204,650,506 (30 June 2016: 271,908,036) Sterling
Shares.
11. Net Asset Value per share
30 June 30 June 31 December 31 December
2017 2017 2016 2016
(Unaudited) (Unaudited) (Audited) (Audited)
GBP EUR GBP EUR
Euro Shares
Net Asset Value - 128,264,824 - 135,941,582
Net Asset Value
per share - 1.0949 - 1.0541
Sterling Shares
Net Asset Value 226,412,536 258,065,008 229,805,385 269,584,697
Net Asset Value
per share 1.1175 1.2737 1.0696 1.2548
12. Reconciliation of NAV to published NAV
30 June 31 December
2017 2016
(Unaudited) (Audited)
NAV per NAV per NAV per NAV per
share share share share
GBP EUR GBP EUR
Euro Shares
Published NAV - 1.0954 - 1.0541
Tender fee adjustment - (0.0005) - 0.0000
NAV attributable
to Shareholders - 1.0949 - 1.0541
Sterling Shares
Published NAV 1.1178 1.2741 1.0696 1.2548
Tender fee
adjustment (0.0003) (0.0004) 0.0000 0.0000
NAV attributable
to Shareholders 1.1175 1.2737 1.0696 1.2548
13. Related Party Disclosure
The Directors are entitled to remuneration for their services.
Please refer to note 5 for further detail.
Richard Boleat acts as the enforcer of the CCPEOL Purpose Trust,
a business purpose trust established under Jersey law and settled
by the Company. The role has arisen as a result of the
implementation of the resolution passed at the Company's Annual
General Meeting on 4 April 2016 which authorised the Company to
make arrangements to enable the conversion of treasury shares held
by the Company from time to time from one currency denomination to
another. The position is unremunerated and represents an alignment
of interests with those of the Company.
14. Events after the Reporting Period
Management has evaluated subsequent events for the Company
through 21 September 2017, the date the financial statements were
available to be issued, and had concluded there are not any
material events that require disclosure or adjustment of the
financial statements other than those listed below:
On 4 July 2017, the Company sold 12,608,528 Euro treasury shares
at a price of EUR1.0994 per share and 69,197,176 Sterling treasury
shares at a price of GBP1.1207 per share. Refer to note 7 for
further detail.
On 2 August 2017, the Company declared a dividend of EUR0.01375
per Euro Share (total EUR1,728,958) and GBP0.01375 per Sterling
Share (total GBP3,737,362) and a dividend of GBP5.37 per management
share. The dividends were paid to shareholders on 1 September
2017.
On 14 August 2017, the June 2017 contractual quarterly tender
completed with 4,013,564 Euro Shares being repurchased and
transferred into the Company's name and held as treasury
shares.
On 17 August 2017, the Company sold 200,000 Sterling treasury
shares at a price of GBP1.1288 per share.
On 21 August 2017, the Company announced it had received
applications from shareholders to convert 294,967 Sterling Shares
into Euro Shares. The Company received no requests for Euro Shares
to be converted to Sterling Shares.
On 1 September 2017, the Company sold 250,000 Sterling treasury
shares at a price of GBP1.1279 per share.
On 8 September 2017, the Company sold 200,000 Euro treasury
shares at a price of EUR1.1040 per share.
On 11 September 2017, the Company sold 200,000 Sterling treasury
shares at a price of GBP1.1279 per share.
On 11 September 2017, Richard Boleat was appointed as an
Enforcer of CCPEOL Purpose Trust. Please refer to note 13 for
further details.
On 18 September 2017, the Company sold 200,000 Euro treasury
shares at a price of EUR1.1073 per share.
On 20 September 2017, the Company sold 392,662 Sterling treasury
shares at a price of GBP1.1310 per share.
15. Controlling party
In the Directors' opinion, the Company has no ultimate
controlling party.
Company information
Registered Office Advocates to the Company
IFC1, The Esplanade (as to Jersey law)
St Helier, Jersey Bedell Cristin
JE1 4BP 26 New Street
St Helier, Jersey
JE2 3RA
Investment Vehicle Manager Custodian
CVC Credit Partners BNP Paribas Securities
Investment Management Services S.C.A.,
Limited Jersey Branch
IFC1, The Esplanade
111 Strand, London St Helier, Jersey
WC2R 0AG JE1 4BP
Corporate Services Manager Auditor
CVC Credit Partners
Investment Services Ernst & Young LLP
Management Limited 25 Churchill Place
22-24 Seale Street,
St. Helier, Jersey Canary Wharf
JE2 3QG London, E14 5EY
Administrator and Company
Corporate Brokers Secretary
Goldman Sachs International BNP Paribas Securities
Peterborough Court, Services S.C.A.,
133 Fleet Street Jersey Branch
IFC1, The Esplanade
London St Helier, Jersey
EC4A 5ER JE1 4BP
Winterflood Securities
Limited
The Atrium Building BNP Paribas Securities
Cannon Bridge House Services S.C.A. Jersey
25 Dowgate Hill Branch is regulated by
London the Jersey Financial
EC4R 2GA Services Commission.
Solicitors to the Company Registrar
Computershare Investor
(as to English law) Services (Jersey)
Herbert Smith Freehills Limited
LLP Queensway House
Exchange House Hilgrove Street
Primrose Street St Helier
London Jersey
EC2A 2EG JE1 1ES
For Investors in Switzerland:
The Prospectus, the Memorandum and Articles of Association as
well as the annual and half yearly financial reports of the Company
may be obtained free of charge from the Swiss Representative. In
respect of the Shares distributed in and from Switzerland to
Qualified Investors, the place of performance and the place of
jurisdiction is at the registered office of the Swiss
Representative.
Swiss Representative: FIRST INDEPENDENT FUND SERVICES LTD.,
Klausstrasse 33, CH-8008 Zurich, Switzerland.
Swiss Paying Agent: Neue Helvetische Bank AG, Seefeldstrasse
215, CH-8008 Zurich, Switzerland.
-END-
The person responsible for arranging for the release of this
announcement on behalf of the Company is Siobhan Lavery of BNP
Paribas Securities Services S.C.A., Jersey Branch, Company
Secretary.
IFC1 - The Esplanade - St Helier - Jersey - JE1 4BP
Company Secretary
Tel: +44 (0) 1534 709181
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EFLFLDKFEBBE
(END) Dow Jones Newswires
September 21, 2017 12:01 ET (16:01 GMT)
CVC Income & Growth (LSE:CCPG)
Historical Stock Chart
From Apr 2024 to May 2024
CVC Income & Growth (LSE:CCPG)
Historical Stock Chart
From May 2023 to May 2024