JZ Capital Ptnrs Ltd Update on Secondary Sale and Monthly Net Asset Value

 
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 
 
               Further Update in relation to Secondary Sale and 
 
                            Monthly Net Asset Value 
 
23 June 2022 
 
Secondary Sale 
 
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 a 
further update in relation to its interest in the Secondary Fund, JZHL 
Secondary Fund LP and to its announcement made on 23 May 2022. 
 
In that announcement, the Company provided an update that a portfolio company 
of the Secondary Fund had executed an agreement to sell certain of its 
interests with completion of the sale being subject to the satisfaction of 
certain conditions, including the federal premerger notification program 
established by the Hart-Scott-Rodino Act.  The sale concerned the disposal of a 
portion of the Secondary Fund's interest in the portfolio company, Testing 
Services Holdings, and the Company is now pleased to announce that the 
conditions to the sale have been satisfied and that the sale has completed.  As 
a result, the Company has received a distribution from the Secondary Fund of 
approximately US$96.2 million. 
 
The sale of a portion of Testing Services Holdings and the resultant 
distribution received by the Company corresponds to a NAV uplift to JZCP of 
approximately 59 cents per Ordinary Share of the Company based on the 30 April 
2022 valuation and an approximately 70 cents uplift compared to the 28 February 
2022 valuation reflected in the Company's annual results.  In addition and as 
previously announced, the Company having now received such distribution is 
expected to be able to fund its obligation to redeem its zero dividend 
preference shares due on 1 October 2022, subject to compliance with the 
financial covenants of the Company's Senior Facility provided by WhiteHorse 
Capital Management, LLC due on 26 January 2027 and the extension of the 
maturity of the Subordinated Notes made available by Jay Jordan and David 
Zalaznick (and their affiliates) due on 11 September 2022.  It had previously 
been indicated that when the Company had sufficient cash to redeem the zero 
dividend preference shares such an extension would be negotiated and, 
accordingly, the Company intends to seek to negotiate such an extension to the 
maturity of the Subordinated Notes. 
 
JZCP's remaining interest in the Secondary Fund, following completion of the 
sale of a portion of Testing Services Holdings, is valued at approximately 
US$75.4 million.  As previously announced, the Company will also make further 
announcements in relation to any further distributions of the Secondary Fund 
(and in particular concerning any distributions as a result of its interest in 
the Secondary Fund) as and when appropriate and once further information 
becomes available to it. 
 
Monthly Net Asset Value ("NAV") 
 
The unaudited Net Asset Value per Ordinary Share of the Company as at the close 
of business on 31 May 2022 was as follows: 
 
Company Name                Date        NAV per Ordinary Share 
 
JZ Capital Partners Limited 31 May 2022 US$4.85 
 
JZCP's NAV at 31 May 2022 is US$4.85 per Ordinary Share (US$4.36 per Ordinary 
Share at 30 April 2022), the increase in NAV of 49 cents per Ordinary Share is 
due to net investments gains of 48 cents (59 cents Secondary Fund uplift less 
11 cents other portfolio write downs), investment income of 1 cent, net fx 
gains of 2 cents offset by expenses and finance costs of (2) cents. 
 
Below is a summary of the Company's assets and liabilities at 31 May 2022, 
together with a pro forma summary of the same at 23 June 2022 which includes 
the above described distribution received by the Company from the Secondary 
Fund.  As at 23 June 2022, the Company has cash and cash equivalents of 
approximately US$136 million. 
 
                                    Pro forma 
                             (incl. Secondary 
                                         Fund 
                                distribution) 
 
                  31.5.2022         23.6.2022 
 
                    US$'000           US$'000 
 
Assets 
 
Private             483,289           387,132 
Investments 
 
Cash and             40,334           136,491 
Cash 
equivalents 
 
Other                    10                10 
Receivables 
 
Total               523,633           523,633 
Assets 
 
Liabilities 
 
Senior debt          42,687            42,687 
- maturity 
date 26th 
January 2027 
 
ZDP shares           71,385            71,385 
-maturity 
date 1st 
October 2022 
 
Loan notes -         31,824            31,824 
maturity 
date 12th 
September 
2022 
 
Other                 2,014             2,014 
liabilities 
 
Total               147,910           147,910 
Liabilities 
 
Net Asset           375,723           375,723 
Value 
 
Number of        77,477,214        77,477,214 
Ordinary 
Shares in 
issue 
 
Net Assets          US$4.85           US$4.85 
Value per 
Ordinary 
Share 
 
Unless otherwise defined herein, capitalised terms used in this announcement 
have the meanings given to them in the announcements of the Company dated 23 
May 2022 and 7 April 2022 (as applicable). 
 
______________________________________________________________________________________ 
 
For further information: 
 
Kit Dunford / Ed Berry                  [phone] / +44 (0)7703 
FTI Consulting                          330 199 
 
David Zalaznick                         [phone] 
Jordan/Zalaznick Advisers, Inc. 
 
Sam Walden / Martin Chapman             [phone] / +44 (0)1481 
Northern Trust International Fund       745183 
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

June 23, 2022 02:01 ET (06:01 GMT)