Stmnt re Leverage Facility

RNS Number:5596S
ACP Capital Limited
08 March 2007


Date: 8 March 2007

On behalf of: ACP Capital Limited ("ACP Capital")

For immediate release


ACP Capital Limited (AIM: APL)

ACP Capital announces #125m Leverage Facility from Deutsche Bank for ACP Senior
High Yield

ACP Capital is pleased to announce that it has raised a committed leverage
facility of #125m with Deutsche Bank for ACP Senior High Yield, a
soon-to-be-launched managed vehicle focusing on the acquisition of European
senior debt assets originated primarily through ACP Capital's SME-focused
integrated finance business, and through the primary and secondary markets.

Once fully launched, ACP Senior High Yield is intended to offer investors a
secure, high-yielding product targeting a stabilized dividend yield in the
region of 8-10% resulting from the vehicle's investments primarily in senior
debt instruments combined with partial downside protection provided by ACP
Capital. As a result, ACP Senior High Yield is intended to offer investors a
product that would have the equivalent risk profile of a corporate bond fund but
with the potential for a greater dividend yield. ACP Senior High Yield will be
distinct from ACP Mezzanine in that it will not underwrite loans, will offer
investors partial capital protection and will focus on high yielding senior debt
rather than mezzanine assets.

ACP Capital is currently in the process of warehousing assets for ACP Senior
High Yield and intends to launch the vehicle later in 2007, once the portfolio
has reached appropriate volume and diversity. To date, it has acquired two
assets for the ACP Senior High Yield portfolio and is actively pursuing further
acquisitions.

The Deutsche Bank facility has been arranged for the warehousing of the assets
on ACP Capital's balance sheet and will continue to be utilised within ACP
Senior High Yield once floated. The facility is expected to run for an initial
period of 5 years and will allow the vehicle to generate enhanced returns by
leveraging acquisitions up to a level of between 70 and 75%. The facility has
been provided by the Structured Credit Finance desk at Deutsche Bank, part of
its Global Finance and FX business.

ACP Senior High Yield will represent the third vehicle launched by ACP Capital,
marking a further step in the evolution of the company's asset management
business. ACP Capital is currently in the process of raising #150m of capital to
further fund its development as a leading finance provider for the European SME
market and has initiated steps to move to a listing on the London Stock
Exchange's main board in the near future.

Commenting, Eric Youngblood, Chief Financial Officer of ACP Capital said:

"Securing the Deutsche Bank leverage facility puts us in an optimal position
from which to launch ACP Capital's third managed vehicle, ACP Senior High Yield,
which we expect to complement and enhance our existing asset management
business. We are confident that a high yielding, partially capital protected
investment product of this sort will be well received by investors and will
further demonstrate the scalability of ACP Capital's integrated finance business
as a source of origination for its managed vehicles."

For further information on ACP Capital, please visit our website:
www.acpcapital.com

Enquiries:

Redleaf Communications Limited-          Rob Bain [phone]

Collins Stewart (Nomad)-                 Simon Atkinson [phone]


Notes to Editors:

ACP Capital Limited

ACP Capital is a Jersey-incorporated specialized integrated finance and asset
management company focusing on both the asset-backed and non asset-backed
sectors in the European small and mid-sized enterprise (SME) market. The
company's shares were admitted to trading on AiM in January 2006, raising
approximately #50m before costs, followed by a further #15m share placing in
December 2006. In February 2007, the company announced its intention to pursue a
further capital raise in the region of #150m in 2007 in order to finance its
intended development plans, including the development of additional funding
lines, managed vehicles and strategic platforms (as announced 6 February 2007).

As an integrated finance specialist, ACP Capital offers a combination of equity,
mezzanine and senior debt to companies in niche markets, such as the German
"Mittelstand" (small and middle-sized privately-owned companies), and for asset
backed transactions, for example, in the real estate and infrastructure sectors.
The company intends to put in place levered loan and non-investment grade
funding vehicles in order to complement its current product base with a view to
providing financing solutions across the capital structure.

As an asset manager, ACP Capital manages a series of investment vehicles that
can provide the required funding for its integrated finance capabilities. ACP
Capital intends to launch at least 2 managed vehicles each year in specific
sectors in its target markets. These managed vehicles are intended to take
advantage of the planned flow of asset opportunities from the expansion of the
company's funding capabilities and strategic platforms. ACP Capital intends to
receive management and performance related fees from these vehicles in addition
to any share price increase as a strategic equity investor. To date, ACP Capital
has launched 2 such vehicles, ACP Mezzanine and IFR Capital.

Results- FY 2006

For the period 30 August 2005 to 31 December 2006, ACP Capital generated total
income and increase in fair value of investments of #19.0 million and a net
profit of #15.0 million with diluted earnings per ordinary share of 21.5 pence
for the period. The Board approved a dividend of 3.0 pence per ordinary share,
representing an increase from the target of 2.0 pence per ordinary share stated
in the company's admission document published in December 2005.

Senior Management

Derek Vago, CEO, was previously managing director and co-head of the Asset
Finance Group (AFG) at Nomura International plc where he was responsible for all
balance sheet activities including equity, mezzanine, and senior debt financing
across both asset backed and non asset-backed sectors. Among transactions he led
for AFG were the acquisition of seven Center Parcs European assets and the
acquisition of Earls Court and Olympia. In 3 years Derek built the AFG into a
30-strong team generating upwards of #40m in revenues with a book of
approximately #2 billion. Derek was previously co-head of the European Real
Estate Investment Banking Group of Credit Suisse First Boston in London and has
over 15 years experience in international financial markets and corporate
finance.

Eric Youngblood, CFO, has 18 years experience in Global Structured Finance,
primarily in Securitisation. He was most recently at Nomura International plc
where he was the Head of Asset-Backed Securitisation for AFG. Prior to Nomura,
Eric was Director of Securitisation at CDC IXIS Capital Markets, where he was
responsible for developing the company's international securitisation activities
outside of France. Earlier in his career, Eric was Managing Director, Head of
Structuring at Bear Stearns in both Madrid and London and Head of Asset
Securitisation for Commerzbank in London.

Eric led the negotiation of both the #125m RBS leverage facility in July 2006
and the recent Deutsche Bank facility for ACP.

Nikolaj Larsen, Managing Director, Head of Strategic Investments has 6 years
experience in Investment Banking. Prior positions include Head of Core
Underwriting in the AFG team at Nomura International plc where he focused on
asset backed deals such as the Earls Court and Olympia acquisition and non-asset
backed deals such as the acquisition and financing of Nordsee GmbH for the
German food retailer Kamps Food Retail Investment SA ("KFRI").

Non executive directors include Heiner Kamps, founder of Kamps AG and a leading
retail operator in Germany, and Francois Georges, former CEO of Pierres &
Vacances. Mr. Kamps and Mr. Georges provide direct access to opportunities
arising in Germany and France. Alan Braxton, a further non executive director is
currently managing director of Presidio Partners, a leading international
private placement advisor.

Jeff Bennett, CIO, ACP Mezzanine Limited has over 18 years of non-investment
grade financing experience, most recently at Morgan Stanley where he was a
Managing Director in the Leveraged Finance Group. During his time at Morgan
Stanley, Jeff structured some of the largest European financings including: the
Euro10bn financing package for Ineos Group Holdings' acquisition of Innovene, the
#1.4bn financing to support the public to private leveraged buyout of Debenhams,
and a Euro30bn senior bank facility for France Telecom.


                      This information is provided by RNS
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