Trading Update for ACP Mezzanine
22 January 2008
ACP Mezzanine Limited (“ACP Mezzanine” or the “Company”: ACPM.LN), the closed- ended investment company focused on sub-investment grade lending to European small and medium-sized enterprises (“SME”), today provides an update on trading.
- ACP Mezzanine has made good progress during 2007, investing the majority of the proceeds raised from its IPO
- As a result, ACP Mezzanine remains confident that it will exceed its targeted total 2007 dividend of €0.09 per share
- Management estimates that net asset value will exceed €1.00 per share as at 31 December 2007
- Market conditions are excellent with ACP Mezzanine currently evaluating an origination pipeline of approximately €500 million of SME loan assets in the first quarter 2008
- The Company will, should the pipeline stated above be realised, receive a capital injection of approximately €10 million through the exercise of call options by ACP Capital Limited (APL.LN) at a price of €1.00 per share. The Company also expects to undertake a further capital increase of circa Euro 200mn shortly thereafter, with an intended parallel move of its listing to Euronext
- ACP Mezzanine reiterates that it has negligible exposure to UK residential mortgages and no exposure to the residential mortgage sector in the US
ACP Mezzanine will announce preliminary results for the 12 months ended 31 December 2007 no later than 22 February 2008.
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.