Termination of Facility
25 September 2008
ACP Capital (the "Company") announces that today it agreed to terminate its structured sale and repurchase transaction with Deutsche Bank (the "Facility") by settling all outstanding commitments, interest and associated breakage fees and as a consequence its balance sheet will be in a net cash position and free of debt.
The breakage fee payable will amount to approximately £2.4 million. The Company has determined that there is a financial advantage to closing the Facility because the Facility no longer served any economic purpose.
John Chapman, the Company Chairman, commented: "In the current economic environment, the Facility was no longer advantageous to the Company and did not fit with the Company's current stated strategy of reducing its asset base, risk profile and expenses in order to maximise distributions to shareholders. Eliminating the Facility is a substantial step forward in furtherance of our strategy."
Further information will be provided within the interim accounts to be published on or around 30 September 2008.
Enquiries:
Chris Wells, Collins Stewart: +44 (0) 207 523 8350
(Nominated Adviser)