JZ CAPITAL PARTNERS LIMITED
(the "Company" or "JZCP")
(a closed-end collective investment scheme incorporated with
limited liability under the laws of Guernsey with registered number
48761)
LEI: 549300TZCK08Q16HHU44
SENIOR FACILITY
AMENDMENTS
7 October
2021
JZ Capital Partners Limited, the London listed fund that invests in US and
European microcap companies and US real estate, announces that it
has agreed with its existing senior lenders to borrow a further
amount of US$16.0 million under its
senior secured debt facility.
The increase in loan amount will constitute 'first out loans'
under the senior facility, being senior priority loans entitled to
repayment in full prior to any principal payments being made on the
'last out loans' under the facility, each as further described in
the Company's announcement made on 17 May
2021. The new 'first out loans' will be subject to the same
terms as the previous 'first out loans' (having been earlier repaid
in full in June 2021) including with
respect to interest rate (being Libor + 9.75 per cent., with a 1
per cent. floor) and use of proceeds (with 90 per cent. of net cash
proceeds derived from realisations still required to be applied
towards their repayment). The terms of the 'last out loans' also
remain unchanged and the Company's US$31.5
million of loan notes earlier issued will remain fully
subordinated to all loans outstanding under the senior
facility.
Whilst the Company's intention remains as being to realise the
maximum value of its investments and, after repaying its debt
obligations, to return capital to shareholders, the Company
acknowledges that this is likely to be contingent on its ability to
implement an alternative debt restructuring plan over an
appropriate timeframe and, as a result, considers it prudent given
the potential relative illiquidity of its investments to maintain
sufficient cash liquidity to support its existing portfolio
investments and obligations as they fall due, including the senior
facility which remains as maturing on 12
June 2022, the subordinated loan notes which mature on
11 September 2022 and the redemption
of its zero dividend preference shares which fall due on
1 October 2022. The Company remains
committed to the delivery of its investment policy (including to
make no further investments outside of its existing obligations or
to the extent which an investment may be made to support an
existing portfolio company) and confirms that the increase in loan
amount will be used in a manner consistent with that policy.
For completeness, following the increase in loan amount, the
total amount outstanding under the senior facility will be
US$51,953,440.05, of which
US$16,000,000 will be 'first out
loans' and US$35,953,440.05 will be
'last out loans'.
For further information:
Ed Berry
FTI Consulting |
+44 (0)7703 330
199 |
David Zalaznick
Jordan/Zalaznick Advisers, Inc. |
+1 (212) 485 9410 |
Sam Walden
Northern Trust International Fund Administration Services
(Guernsey) Limited |
+44 (0) 1481
745385 |
Important Notice
This announcement also includes statements that are, or may be
deemed to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates",
"anticipates", "expects", "intends", "may", "will" or "should" or,
in each case, their negative or other variations or comparable
terminology. These forward-looking statements relate to matters
that are not historical facts. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future. Forward-looking statements are not guarantees of future
performance. The Company's actual investment performance, results
of operations, financial condition, liquidity, policies and the
development of its strategies may differ materially from the
impression created by the forward-looking statements contained in
this announcement. In addition, even if the investment performance,
result of operations, financial condition, liquidity and policies
of the Company and development of its strategies, are consistent
with the forward-looking statements contained in this announcement,
those results or developments may not be indicative of results or
developments in subsequent periods. These forward-looking
statements speak only as at the date of this announcement. Subject
to their legal and regulatory obligations, each of the Company,
JZAI and their respective affiliates expressly disclaims any
obligations to update, review or revise any forward-looking
statement contained herein whether to reflect any change in
expectations with regard thereto or any change in events,
conditions or circumstances on which any statement is based or as a
result of new information, future developments or otherwise.