Burford Capital PLC Proposed Pref Share repurchase & CISX cancellation (8886B)

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RNS Number : 8886B

Burford Capital PLC

22 June 2016

The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, the Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this document. The information contained herein may only be released, published or distributed in the United Kingdom, Jersey, the Bailiwick of Guernsey and the Isle of Man in accordance with the applicable regulatory requirements.

22 June 2016

BURFORD CAPITAL PLC

PROPOSED REPURCHASE AND CANCELLATION OF LISTING OF PREFERENCE SHARES OF BC CAPITAL LIMITED ON THE CHANNEL ISLANDS SECURITIES EXCHANGE

Burford Capital PLC (the "Company") announces that the board of BC Capital Limited ("BC Capital"), a direct subsidiary of Burford Capital Limited ("Burford"), has passed a resolution on 20 June 2016 for the repurchase and cancellation of all 'A' Preference Shares (ISIN: GG00BGCZ3T42; SEDOL: BGCZ3T4) (the "Preference Shares") which are represented by the USD40,000,000 nominal amount of units (the "Units") issued by BC Capital and listed on the Official List of the Channel Islands Securities Exchange (the "Repurchase"). Furthermore, BC Capital has made an application to the Channel Islands Securities Exchange (the "CISE") for the cancellation of the listing of the Units on the CISE (the "Delisting").

Background to and Reasons for the Repurchase and Delisting

In 2013, when Burford was not yet ready to access the debt markets, Burford issued these contingent Preference Shares to provide back-up liquidity in the event of a funding shortfall. The Preference Shares act essentially like a bank line of credit: Burford is able to call capital from holders if needed, and pays a stand-by fee for the commitment to provide such capital. Given Burford's growth and ability to access other forms of capital, it no longer makes sense to pay the 3% stand-by fee for the Preference Shares. The total cost of redeeming the Preference Shares to Burford is $0.11 in aggregate.

Repurchase Process

BC Capital has today issued to each holder of Preference Shares a repurchase notice which included individual details, the total number of Preference Shares in issue as at today's date, the repurchase price for the Preference Shares and the US Dollar amount representing the repurchase price payable in respect of each Unit.

Additionally, each holder of Preference Shares has been requested to sign and return a repurchase agreement and share transfer form. The payment of the applicable repurchase price to a holder of Preference Shares will be made on or about 1 July 2016.

Upon cancellation of the Preference Shares, the Units will be delisted.

For further information, please contact:

 
 Macquarie Capital (Europe) Limited              [phone] 
  - NOMAD and Joint Broker                        2000 
 Ken Fleming 
 Nicholas Harland 
 
                                                 [phone] 
 RBC Capital Markets - Joint Broker               4000 
 Oliver Hearsey 
 
 Haitong Securities (UK) Limited                 [phone] 
  - Joint Broker                                  9191 
 John Riddell 
 Harry Stockdale 
 
 Neustria Partners - Financial Communications    [phone] 
  for Burford Capital                             2580 
 Robert Bailhache 
 [e-mail] 
 

About Burford Capital PLC

Burford Capital PLC is a special purpose financing vehicle created to issue Burford's 2014 retail bonds and an indirect wholly-owned subsidiary of Burford. Burford Capital PLC is also the issuer of Burford's 2016 retail bonds.

About Burford

Burford is a leading global finance firm focused on law. Burford's businesses include litigation finance, insurance and risk transfer, law firm lending, corporate intelligence and judgment enforcement, and a wide range of investment activities. Burford's equity and debt securities are publicly traded on the London Stock Exchange. Burford works with lawyers and clients around the world from its principal offices in New York and London.

For more information about Burford, visit www.burfordcapital.com

This information is provided by RNS

The company news service from the London Stock Exchange

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June 22, 2016 03:00 ET (07:00 GMT)