JZ Capital Ptnrs Ltd Updates in relation to Senior Facility

 
TIDMJZCP TIDMJZCN 
 
JZ CAPITAL PARTNERS LIMITED 
(a closed-end collective investment scheme incorporated with limited liability 
           under the laws of Guernsey with registered number 48761) 
                           LEI: 549300TZCK08Q16HHU44 
 
 Updates in relation to Senior Facility, Real Estate Valuations and Secondary 
                                     Sale 
 
                      Recommencement of NAV announcements 
 
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET 
ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). 
 
 
8 October 2020 
 
On 25 September 2020, JZ Capital Partners Limited ("JZCP" or the "Company"), 
the London listed fund that invests in US and European micro-cap companies and 
US real estate, announced that it had received consent from Guggenheim Partners 
to make the relevant interest payment due on 30 September 2020 to the holders 
of its Convertible Unsecured Loan Stock due 2021 ("CULS").  The Company 
subsequently made the CULS interest payment in full on that date. 
 
It was also noted in that announcement that the Company expected to breach its 
minimum asset coverage ratio under its senior facility with Guggenheim Partners 
at the end of September 2020, and that the aforementioned consent to make the 
CULS interest payment required the Company to have entered into amendments to 
its senior facility by 7 October 2020; the failure to do so would have also 
constituted an event of default under the facility.  The Company today confirms 
that, whilst it has not yet reached final agreement with its lenders as to the 
amended terms of the facility and is therefore in breach of its minimum asset 
coverage ratio and in default under the facility, the Company remains in 
discussions and considers that it is close to procuring the necessary waivers 
from and securing agreement with its lenders as to the amended facility terms. 
The Company expects to make a further announcement shortly. 
 
For completeness, the Company also notes that, if the existing or any other 
event of default under the senior facility were to continue on any subsequent 
CULS interest payment date, the Company would be prohibited from making 
payments to the holders of the CULS, absent a waiver, a further consent or the 
amended terms of the facility allowing for such payments to be made. 
 
Separately, the Company refers to its earlier announcement made on 17 September 
2020 in relation to anticipated write downs to its real estate investments 
including on account of the Covid-19 pandemic.  The Company can today provide a 
further update on this matter and accordingly confirms that it expects to 
experience net write downs to its real estate investments that may result in a 
mark down to its net asset value of approximately $110 million (revised upwards 
from the range of between $80 to $100 million announced previously).  Having 
now provided this further update (and the Company considering that it will, at 
the time of release of its upcoming half year results, be better placed to make 
informed judgements as to the impact on value resulting from Covid-19), the 
Company can confirm that it intends to recommence its monthly NAV announcements 
following the publication of those results for the six-month period ended 31 
August 2020. 
 
Finally, the Company also wishes to provide an update in relation to the 
proposed secondary sale of certain of its US micro-cap assets.  The secondary 
sale, like the Company's discussions with its lenders, has continued to 
progress in a positive manner and an agreement is expected to be reached and 
announced shortly. 
 
 
Market Abuse Regulation: 
 
The information contained within this announcement is 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 for the release of this announcement on behalf of 
JZCP is David Macfarlane, Chairman of JZCP. 
 
For further information: 
 
Ed Berry                                                       [phone] 
FTI Consulting                                                 1046 
 
David Zalaznick                                                +1 (212) 485 
Jordan/Zalaznick Advisers, Inc.                                9410 
 
Sam Walden                                                     +44 (0)1481 
Northern Trust International Fund Administration Services      745385 
(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, the Investment Adviser 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

October 08, 2020 02:00 ET (06:00 GMT)