GCP Asset Backed Income Fund Ltd Proposed C Share Issue (6521O)
22 August 2017 - 6:54PM
UK Regulatory
TIDMGABI
RNS Number : 6521O
GCP Asset Backed Income Fund Ltd
22 August 2017
GCP Asset Backed Income Fund Limited
("GCP Asset Backed" or the "Company")
LEI 213800FBBZCQMP73A815
Proposed C Share issue
The Board of GCP Asset Backed, which invests in asset backed
loans, today announces that it is considering increasing the
Company's capital base through a pre-emptive offer of C shares at a
price of 100 pence per C share, targeting gross proceeds in excess
of GBP70 million (the "Issue").
Any issue of C shares will be used to take advantage of a
pipeline of attractive investment opportunities which have been
identified by Gravis Capital Management Limited (the "Investment
Manager").
It is expected that any such issue would broaden the Company's
investor base, improve secondary market liquidity for shareholders,
reduce the Company's ongoing charges ratio by providing a larger
equity base over which its fixed costs are spread and further
diversify its portfolio of investments.
The Company is taking legal, tax and financial advice and will
make a further announcement in due course.
Any issue of C shares will be subject to the approval of a
prospectus in connection with the Issue by the UK Listing
Authority. It is currently expected that, should the Company
proceed with the Issue, a Prospectus in connection with the Issue
will be published in late September 2017 and trading in the C
shares will commence in mid-October 2017 ("Admission").
On 13 January 2017 the Company announced it had entered into a
two year GBP15 million revolving credit facility (the "RCF") with
Royal Bank of Scotland International Limited. The net proceeds of
any Issue may be used to repay any monies drawn down by the Company
under the RCF which have been used to fund the whole or part of new
investments in the period from the date of this announcement to
Admission.
If net proceeds of the Issue are deployed in this manner, the
relevant investments (or part thereof, as appropriate) and interest
accrued thereon will be allocated to the pool of assets and NAV
attributed to the C shares and will be accounted for in this
separate pool of C share assets until the C shares convert into new
ordinary shares.
This announcement contains Inside Information as defined under
the Market Abuse Regulation (EU) No. 596/2014.
For further information, please contact:
Gravis Capital Management Limited +44 (0)20 3405 8500
David Conlon david.conlon@gcpuk.com
Philip Kent philip.kent@gcpuk.com
Dion Di Miceli dion.dimiceli@gcpuk.com
Cenkos Securities plc +44 (0)20 7397 8900
Tom Scrivens tscrivens@cenkos.com
Oliver Packard opackard@cenkos.com
Sapna Shah sshah@cenkos.com
Buchanan +44 (0)20 7466 5000
Charles Ryland charlesr@buchanan.uk.com
Vicky Hayns victoriah@buchanan.uk.com
Notes to Editors
The Company
The Company is a closed ended investment company traded on the
Main Market of the London Stock Exchange. Its investment objective
is to generate attractive risk-adjusted returns primarily through
regular, growing distributions and modest capital appreciation over
the long term.
The Company seeks to meet its investment objective by making
investments in a diversified portfolio of predominantly UK based
asset backed loans which have contracted, predictable medium to
long term cash flows and/or physical assets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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