JZ Capital Partners Ltd Update in relation to Secondary Sale

 
TIDMJZCP 
 
JZ CAPITAL PARTNERS LIMITED (the "Company" or "JZCP") 
 
(a closed-ended investment company incorporated with limited liability under the 
laws of Guernsey with registered number 48761) 
 
LEI 549300TZCK08Q16HHU44 
 
Update in relation to Secondary Sale 
 
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET 
ABUSE REGULATION (EU) NO. 596/2014, WHICH FORMS PART OF UK LAW BY VIRTUE OF THE 
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). 
 
14 December 2023 
 
JZ Capital Partners Limited, the London listed fund that has investments in US 
and European microcap companies and US real estate, is pleased to provide an 
update in relation to its interest in the secondary fund, JZHL Secondary Fund LP 
(the "Secondary Fund"), to which JZCP earlier sold its interests in certain US 
microcap portfolio companies (the "Secondary Sale"). The Secondary Sale was 
announced on 19 October 2020, with further details of the sale being included in 
a circular sent to shareholders of the Company dated 29 October 2020. 
 
JZCP is pleased to announce that the Secondary Fund has sold its interest in 
Felix Storch Holdings, LLC ("Felix Storch") for consideration of approximately 
US$167.7 million. 
 
Shareholders are reminded that, as detailed in the aforementioned announcement 
and circular, JZCP received as consideration for the Secondary Sale, and in 
addition to the previously received approximately US$90 million in cash, a 
special limited partner interest in the Secondary Fund entitling JZCP to certain 
distributions and other rights and obligations from the Secondary Fund (the 
"Special LP Interest"). Any distributions to be received by JZCP as a result of 
its Special LP Interest are subject to an agreed distribution waterfall as 
detailed in the aforementioned announcement and circular which provides that, 
once the other investors in the Secondary Fund have received their initial 
required distributions determined by reference to their respective contributions 
to the Secondary Fund and amounting to approximately US$132.6 million, in 
aggregate, JZCP is entitled to receive as distributions from the Secondary Fund: 
(i) 95 per cent. of all distributions until it has received distributions equal 
to US$67.6 million; and (ii) thereafter, 37.5 per cent. of all distributions. 
 
In accordance with the agreed distribution waterfall described above, JZCP will 
receive a distribution from the Secondary Fund of approximately US$62.5 million 
in connection with the sale of Felix Storch, which would correspond to a NAV 
uplift to JZCP of approximately 19 cents per ordinary share. JZCP's remaining 
interest in the Secondary Fund, based on pro forma financials as at 31 August 
2023, is valued at approximately US$32.5 million. 
 
The sale of Felix Storch follows the previously announced disposals of certain 
interests in the Secondary Fund, in connection with which JZCP received 
aggregate distribution proceeds of US$97.4 million. The Company will make 
further announcements in relation to any further distributions of the Secondary 
Fund as and when appropriate. 
 
The Company notes that its only outstanding debt obligation is approximately 
US$45.0 million (plus accrued interest) under the Company's senior facility 
provided by WhiteHorse Capital Management, LLC due on 26 January 2027. The 
Company remains focused on the implementation of the new investment policy to 
realise maximum value from the Company's investments and, after the repayment of 
all debt, to return capital to shareholders. To that end and in accordance with 
the investment policy, the Company intends to use the proceeds from the sale of 
Felix Storch to repay its senior facility in full. This repayment will, subject 
to retaining sufficient funds to cover existing obligations and support certain 
existing investments to maximise their value, enable the Company to plan to 
commence making distributions to shareholders, as previously announced in the 
Company's interim report and financial statements released on 9 November 2023. 
The Company will make further announcements regarding the repayment of the 
senior facility as and when appropriate. 
 
Market Abuse Regulation 
 
The information contained within this announcement is considered by the Company 
to constitute inside information as stipulated under MAR. Upon the publication 
of this announcement, this inside information is now considered to be in the 
public domain. 
 
The person responsible for arranging the release of this announcement on behalf 
of the Company is Sharon Parr, Board member of JZCP. 
 
_________________________________________________________________________________ 
_____ 
 
For further information: 
 
Kit Dunford / Ed Berry              [phone] 
FTI Consulting                      / [phone] 
                                    199 
David Zalaznick                     [phone] 
Jordan/Zalaznick Advisers, Inc. 
Hannah Hayward                      [phone] 
Northern Trust International Fund 
Administration Services (Guernsey) 
Limited 
 
Important Notice 
 
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", "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, Jordan/Zalaznick 
Advisers, Inc. 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. 
 
 
This information was brought to you by Cision http://news.cision.com 
 
 
END 
 
 

(END) Dow Jones Newswires

December 14, 2023 02:00 ET (07:00 GMT)