TIDMHVPE
RNS Number : 1687M
HarbourVest Global Priv. Equity Ltd
04 January 2019
04 January 2019
HARBOURVEST GLOBAL PRIVATE EQUITY ANNOUNCES NEW ENLARGED CREDIT
FACILITY WITH IMPROVED TERMS
-- New, lower cost facility with initial term extended to January 2026
-- Five-year evergreen structure with initial two-year no-notice provision
-- Facility size increased from US$500m to US$600m; financial terms improved
-- Mitsubishi becomes new lender, joining incumbent Credit Suisse
HarbourVest Global Private Equity Limited ("HVPE" or "the
Company"), a closed-end investment company, announces the
commencement of a new US$600 million multi-currency credit facility
("the Facility") with Credit Suisse AG London Branch ("Credit
Suisse") and Mitsubishi UFJ Trust Banking Corporation
("Mitsubishi") acting through its New York Branch. The lenders will
provide an equal commitment of US$300 million each. Mitsubishi is a
new lender for HVPE, joining Credit Suisse, which has been
co-lender to the Company since 2015. The new Facility is structured
as a five-year evergreen with a two-year initial no-notice
provision, giving a guaranteed initial term of seven years. From
January 2021, the lenders are able to serve notice, but this must
be a minimum of five years. Credit Suisse will act as agent.
HVPE will pay a commitment fee to Credit Suisse and Mitsubishi
on the undrawn Facility at a blended rate of 95 basis points, a
decrease from the previous 115 basis points. The LIBOR margin has
also been reduced to 250 basis points for borrowings of less than
US$300 million, with an additional 40 basis points payable on
borrowings that exceed this amount. This compares favourably to the
previous facility, which carried a margin of 275 basis points for
borrowings of less than US$250 million with a further 30 basis
points payable on the entire drawn amount were borrowings to exceed
US$250 million. As with the previous facility, all borrowings are
subject to compliance with covenants.
The Company moved to a net cash position in August 2014 and has
had no requirement to use borrowed funds in the intervening period.
As previously advised on 20 December 2018, HVPE held net cash of
US$192.6 million at 30 November 2018 and as of the date of this
announcement, the Facility remains undrawn.
Sir Michael Bunbury, Chairman of HVPE, commented:
"I am very pleased that HVPE is able to announce the details of
the new "evergreen" credit facility to be provided jointly by
Credit Suisse and Mitsubishi. The Facility is committed initially
through to January 2026. As compared with the Company's previous
arrangements, the new Facility is increased from US$500 million to
US$600 million on improved terms and with a longer duration.
"HVPE aims to run a prudent balance sheet with sufficient leeway
to ensure stability throughout the economic cycle. The extended
Facility provides support, in the event of more difficult times
ahead, to enable the Company to continue its strategy of optimising
long-term investment performance without concerns about possible
short-term cash flow uncertainties.
"HVPE looks forward to the ongoing relationship with Credit
Suisse, who were one of the joint providers of the previous credit
facility, and with the new provider, Mitsubishi."
-S -
Enquiries:
HVPE
Richard Hickman Tel: +44 (0)20 7399 rhickman@harbourvest.com
9847
Charlotte Edgar Tel: +44 (0)20 7399 cedgar@harbourvest.com
9826
HarbourVest Partners
Alicia Sweeney Tel: +1 (617) 807 acurransweeney@harbourvest.com
2945
MHP Communications
Charlie Barker / Tel: +44 (0)20 3128 hvpe@mhpc.com
Tim Rowntree / Kelsey 8100
Traynor
Notes to Editors:
About HarbourVest Global Private Equity Limited:
HarbourVest Global Private Equity Limited ("HVPE" or the
"Company") is a Guernsey-incorporated, closed-end investment
company which is listed on the Main Market of the London Stock
Exchange and is a constituent of the FTSE 250 index. HVPE is
designed to offer shareholders long-term capital appreciation by
investing in a private equity portfolio diversified by geography,
stage of investment, vintage year, and industry. The Company
invests in and alongside HarbourVest-managed funds which focus on
primary fund commitments, secondary investments and direct
co-investments in operating companies. HVPE's investment manager is
HarbourVest Advisers L.P., an affiliate of HarbourVest Partners,
LLC, an independent, global private markets asset manager with more
than 35 years of experience.
About HarbourVest Partners, LLC:
HarbourVest is an independent, global private markets investment
specialist with more than 35 years of experience and more than $50
billion in assets under management. The Firm's powerful global
platform offers clients investment opportunities through primary
fund investments, secondary investments, and direct co-investments
in commingled funds or separately managed accounts. HarbourVest has
more than 400 employees, including more than 100 investment
professionals across Asia, Europe, and the Americas. This global
team has committed more than $34 billion to newly-formed funds,
completed over $19 billion in secondary purchases, and invested
over $8 billion directly in operating companies. Partnering with
HarbourVest, clients have access to customized solutions,
longstanding relationships, actionable insights, and proven
results.
This announcement is for information purposes only and does not
constitute or form part of any offer to issue or sell, or the
solicitation of an offer to acquire, purchase or subscribe for, any
securities in any jurisdiction and should not be relied upon in
connection with any decision to subscribe for or acquire any
Shares. In particular, this announcement does not constitute or
form part of any offer to issue or sell, or the solicitation of an
offer to acquire, purchase or subscribe for, any securities in the
United States or to US Persons (as defined in Regulation S under
the US Securities Act of 1933, as amended ("US Persons")). Neither
this announcement nor any copy of it may be taken, released,
published or distributed, directly or indirectly to US Persons or
in or into the United States (including its territories and
possessions), Canada, Australia or Japan, or any jurisdiction where
such action would be unlawful. Accordingly, recipients represent
that they are able to receive this announcement without
contravention of any applicable legal or regulatory restrictions in
the jurisdiction in which they reside or conduct business. No
recipient may distribute, or make available, this announcement
(directly or indirectly) to any other person. Recipients of this
announcement should inform themselves about and observe any
applicable legal requirements in their jurisdictions.
The Shares have not been and will not be registered under the US
Securities Act of 1933, as amended (the "Securities Act") or with
any securities regulatory authority of any state or other
jurisdiction of the United States and, accordingly, may not be
offered, sold, resold, transferred, delivered or distributed,
directly or indirectly, within the United States or to US Persons.
In addition, the Company is not registered under the US Investment
Company Act of 1940, as amended (the "Investment Company Act") and
shareholders of the Company will not have the protections of that
act. There will be no public offer of the Shares in the United
States or to US Persons.
This announcement has been prepared by the Company and its
investment manager, HarbourVest Advisers L.P. (the "Investment
Manager"). No liability whatsoever (whether in negligence or
otherwise) arising directly or indirectly from the use of this
announcement is accepted and no representation, warranty or
undertaking, express or implied, is or will be made by the Company,
the Investment Manager or any of their respective directors,
officers, employees, advisers, representatives or other agents
("Agents") for any information or any of the opinions contained
herein or for any errors, omissions or misstatements. None of the
Investment Manager nor any of their respective Agents makes or has
been authorised to make any representation or warranties (express
or implied) in relation to the Company or as to the truth, accuracy
or completeness of this announcement, or any other written or oral
statement provided. In particular, no representation or warranty is
given as to the achievement or reasonableness of, and no reliance
should be placed on any projections, targets, estimates or
forecasts contained in this announcement and nothing in this
announcement is or should be relied on as a promise or
representation as to the future.
Other than as required by applicable laws, the Company gives no
undertaking to update this announcement or any additional
information, or to correct any inaccuracies in it which may become
apparent and the distribution of this announcement. The information
contained in this announcement is given at the date of its
publication and is subject to updating, revision and amendment. The
contents of this announcement have not been approved by any
competent regulatory or supervisory authority.
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", "projects",
"estimates", "anticipates", "expects", "intends", "plans", "goal",
"target", "aim", "may", "will", "would", "could", "should" or
"continue" or, in each case, their negative or other variations or
comparable terminology. These forward looking statements include
all matters that are not historical facts and include statements
regarding the intentions, beliefs or current expectations of the
Company. 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 and may be
beyond the Company's ability to control or predict. Forward looking
statements are not guarantees of future performance. More detailed
information on the potential factors which could affect the
financial results of the Company is contained in the Company's
public filings and reports.
All investments are subject to risk. Past performance is no
guarantee of future returns. Prospective investors are advised to
seek expert legal, financial, tax and other professional advice
before making any investment decision. The value of investments may
fluctuate. Results achieved in the past are no guarantee of future
results.
This announcement is issued by the Company, whose registered
address is BNP Paribas House, St Julian's Avenue, St Peter Port,
Guernsey, GY1 1WA
(c) 2019 HarbourVest Global Private Equity Limited. All rights
reserved.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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