ACP Mezzanine participates in IFR Capital refinancing
20 December 2007
ACP Mezzanine Limited (“ACP Mezzanine”: ACPM.LN), the closed-ended investment company focused on lending to European small and medium-sized enterprises (“SMEs”), today announces that it has participated in an approximately €223 million refinancing for IFR Capital plc (“IFR Capital”: IFR.LN), the AIM-listed investment company focused on consolidation opportunities in the European food retail sector. This refinancing repays the €75 million bridge facility ACP Mezzanine provided to IFR Capital in July 2007 and releases more than €22 million of cash upfront to ACP Mezzanine.
Following the refinancing, ACP Mezzanine will hold an approximately €24 million bridge preferred equity position, which it expects to be repaid by IFR Capital in 2008, as well as €17.5 million of second lien and €22 million of senior debt that it expects to sell down to a final hold of €15 million of second lien debt by the end of the first quarter of 2008, releasing a further €20 million of cash to ACP Mezzanine.
The Directors of ACP Mezzanine reiterate their view that ACP Mezzanine is on track to exceed a total 2007 earnings per share of €0.09, with no expected losses for the year.
Enquiries:
| Rob Bailhache & Nick Henderson, Financial Dynamics (Media Relations) | +44 (0) 207 269 7200 |
| Sacha Macintosh, ACP Capital UK LLP | +44 (0) 844 800 4530 |
| Chris Wells, Stewart Wallace, Collins Stewart | +44 (0) 207 523 8350 |
For further information on ACP Mezzanine, please visit www.acpcapital.com
About ACP Mezzanine
ACP Mezzanine Limited (LSE AIM: ACPM) is a Jersey-incorporated, closed ended investment company listed on AIM. It is a provider of sub-investment grade finance to European small and mid-sized enterprises – with a primary focus on the UK, France, Germany and Italy – originating, structuring and underwriting the majority of its investments through ACP Capital Limited (“ACP Capital”: APL.LN) and ACP Capital’s European network. ACP Mezzanine aims to optimise risk-adjusted returns by actively managing its portfolio and to distribute at least 85% of profits as dividends. ACP Capital Limited owns 47% of ACP Mezzanine and, through a subsidiary, acts as its investment manager.
Fundamental changes in the market, such as Basel II, are expected to accelerate demand for alternatives to traditional bank financing in these segments. As a non-regulated lender, ACP Mezzanine is not affected by Basel II. In line with its strategy, ACP Mezzanine has a small exposure to the retail mortgage backed securities sector as well as an anticipated negligible exposure to the US (expected to be limited to certain US infrastructure assets).
By taking control of a majority of the underwriting process through ACP Capital’s investment manager, ACP Mezzanine benefits from a diversified flow of assets whilst ensuring a risk-balanced growth.
By the end of 2009, the Company intends to have €550 million of assets under management and looks set to achieve its target balance sheet mix as stated in its admission document.