JZ Capital Ptnrs Ltd Redemption of Subordinated Loan Notes

 
TIDMJZCP TIDMJZCC TIDMJZCN 
 
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 
 
                     Redemption of Subordinated Loan Notes 
 
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"). 
 
15 February 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 announce 
that, following a number of recent realisations (including most recently the 
closing of the Deflecto Holdings' portfolio company disposal as announced by 
the Company on 24 January 2023) and consistent with the Company's investment 
policy of repaying its debt obligations, the Company has undertaken an early 
voluntary redemption in full of its subordinated 6 per cent. loan notes issued 
to David W. Zalaznick and John (Jay) Jordan II and their affiliates (the 
"Noteholders") which were due to mature on 30 September 2023 (the "Subordinated 
Loan Notes"). In connection with the voluntary redemption, the Company has 
funded the payment to the Noteholders of approximately US$32 million in respect 
of the principal and interest outstanding under the Subordinated Loan Notes. 
 
As previously announced, voluntary redemptions of the Subordinated Loan Notes 
are permitted, provided certain financial tests as set out within the senior 
facility agreement provided by WhiteHorse Capital Management, LLC (the "Senior 
Facility") are satisfied. These include (a) there being no event of default in 
existence under the Senior Facility, (b) the Company maintaining a minimum 
asset coverage ratio (calculated by reference to eligible assets, subject to 
customary ineligibility criteria and concentration limits, plus unrestricted 
cash) of not less than 4.00 to 1.00, and (c) ensuring the Company retains an 
aggregate amount of unrestricted cash and cash equivalents of not less than 
US$12.5 million. 
 
Following the voluntary redemption of the Subordinated Loan Notes, the Company 
has approximately US$105 million of cash and cash equivalents. The Company 
needs to continue to maintain such cash liquidity to invest in accordance with 
its existing investment policy to maximise the value of its existing portfolio 
investments where appropriate, as well as in the current uncertain economic 
climate to support them and so as to meet existing obligations as they fall 
due. 
 
The Company remains focused upon its existing investment policy as approved by 
shareholders, which includes not making further investments outside of existing 
obligations or to support existing portfolio companies, and with the intention 
of realising the maximum value of the Company's investments and, after 
repayment of all its indebtedness, to return capital to shareholders. 
 
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 David Macfarlane, Chairman of JZCP. 
 
______________________________________________________________________________________ 
 
For further information: 
 
Kit Dunford / Ed Berry                  [phone] / +44 (0)7703 
FTI Consulting                          330 199 
 
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. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

February 15, 2023 02:00 ET (07:00 GMT)