ACP Mezzanine announces funding of €75 million debt facility for IFR Capital’s acquisition of Homann
4 July 2007
ACP Mezzanine Limited (“ACP Mezzanine” or the “Company”: ACPM.LN), the sub-investment grade lender focused on European small and medium sized enterprises (“SMEs”), today announces the funding of a debt bridge of €75 million for IFR Capital Plc’s (“IFR”: IFR.LN) acquisition of Homann Chilled Food GmbH. The Company has provided this debt as part of an integrated finance package alongside a €142 million senior debt bridge provided by ACP Capital Limited (“ACP Capital”: APL.LN).
As a result, the Company is on track to meet its performance objectives for the first half of 2007. The Company is therefore intending to initiate a secondary equity offering, which will be launched in the fourth quarter of this year.
Enquiries:
| Simon Atkinson, Collins Stewart Europe Limited (Nominated Advisor to the Company) | +44 (0) 20 7523 8350 |
| Rob Bailhache & Nick Henderson, Financial Dynamics (Media Relations) | +44 (0) 20 7269 7200 |
For further information on ACP Mezzanine, please visit www.acpcapital.com
About ACP Mezzanine
ACP Mezzanine Limited (LSE AIM: ACPM) is a Jersey-incorporated company that listed on AIM in July 2006 after raising €100 million. Its strategy is to pursue opportunities as a mezzanine lender, originating, structuring and underwriting the majority of its investments primarily in the European small and mid-sized enterprise (SME) market. ACP Mezzanine's investment strategy is implemented and managed by ACP Capital through an Investment Management Agreement. ACP Mezzanine's strategy is different from that followed by a number of participants in the mezzanine financing market, which focus on acquiring assets directly from third parties through a syndication process, and can underwrite / syndicate such loans originated directly.
ACP Mezzanine lends primarily across Europe, with origination arising through a direct integrated finance approach alongside ACP Capital's strategic platforms and managed vehicles, and, to a lesser extent, purchases of assets in the secondary market if the expected risk adjusted returns are attractive. It is expected that the integrated finance approach will account for at least two thirds of ACP Mezzanine's investments over time.
ACP Mezzanine’s Board includes Derek Vago, Christophe Tanghe, Wolfgang Mellinghof and two other Non-Executive Directors.
About ACP Capital
ACP Capital Limited (LSE AIM: APL) is a Jersey-incorporated specialist integrated finance and asset management company focusing on both the asset-backed and non assetbacked sectors in the European small and mid-sized enterprise (SME) market. The company’s shares were admitted to trading on AIM in January 2006, raising approximately £50m before costs, followed by a further £15m share placing in December 2006. In March 2007, the company completed a further £150m capital raising in order to finance its intended development plans, including the development of additional funding lines, managed vehicles and strategic platforms to originate loans and assets in Germany, the UK, France and Italy.
As an integrated finance specialist, ACP Capital offers a combination of equity, mezzanine and senior debt to companies in niche markets, such as the German ‘Mittelstand’ (privately-owned SMEs), and for asset-backed transactions in sectors like real estate and infrastructure. The company intends to put in place levered loan and noninvestment grade funding vehicles in order to complement its current product base with a view to providing financing solutions across the capital structure.
As an asset manager, ACP Capital manages a series of investment vehicles that can provide the required funding for its integrated finance capabilities. ACP Capital intends to launch at least two managed vehicles each year in specific sectors in its target markets. These managed vehicles are intended to take advantage of the planned flow of asset opportunities from the expansion of the company’s funding capabilities and strategic platforms. ACP Capital intends to receive management and performance-related fees from these vehicles in addition to any share price increase as a strategic equity investor. To date, ACP Capital has launched two such vehicles, ACP Mezzanine Limited and IFR Capital plc. On 8 March 2007 ACP Capital announced that it had raised a committed leverage facility of £125 million with Deutsche Bank for ACP Senior High Yield, a soonto- be-launched managed vehicle focusing on the acquisition of European senior debt assets originated primarily through ACP Capital's SME-focused integrated finance business, and through the primary and secondary markets.
ACP Capital’s Board includes the highly regarded retail entrepreneur, Heiner Kamps, the Director General of the international real estate investment and development company Jesta Group, Francois Georges, the Managing Director of the full service real estate private equity firm Presidio Partners LLC, Alan Braxton, an Italian certified barrister and Director of Investimente e Sviluppo S.p.a., Daniele Discepolo, Derek Vago, Eric Youngblood, Nikolaj Larsen and two other Non-Executive Directors.
About ACP Capital
IFR Capital plc (LSE AIM: IFR) is an acquisition platform targeting small and mediumsized businesses in the continental European food industry across three sub-sectors: retail (mainly shops/ restaurants), industry (wholesale and production), and distribution.
Founded in October 2006 by ACP Capital and food retail entrepreneur Heiner Kamps, IFR was admitted to trading on AIM in November 2006 after raising approximately €135 million pre costs.
IFR is currently considering various opportunities in the European food sector with a view to acquiring potentially synergistic businesses that would help propagate the company's further growth. IFR recently acquired 100% of the fully diluted share capital of Homann Chilled Food GmbH for €89 million, representing a significant step towards the vision of creating a diversified European food enterprise. Further opportunities include the ongoing expansion of IFR’s new premium bakery brand, Bastians, to major European cities. Further details of these opportunities will be announced as they become available.
Ultimately, IFR's intended long-term strategy is to create a leading, vertically-integrated food business with turnover of at least €1.5 billion by 2009 and an EBITDA margin of approximately 10%. IFR benefits from the operational management of Heiner Kamps as well as the broad financing experience and capabilities of ACP Capital.