REG - VPC Specialty - Initial Return of Capital through B Share Scheme

VPC Specialty Lending InvestmentsAnnouncement

09/04/2024 07:00

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RNS Number : 7605J  VPC Specialty Lending Invest. PLC  09 April 2024

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW
ZEALAND AND THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO
SO MAY RESULT IN THE CONTRAVENTION OF ANY REGISTRATION OR OTHER LEGAL
REQUIREMENT OF SUCH JURISDICTION

This announcement contains inside information as defined in the Market Abuse
Regulation No 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR").

9 April 2024

VPC Specialty Lending Investments PLC

Initial Return of Capital through the B Share Scheme

Shareholders in VPC Specialty Lending Investments plc (the "Company") approved
the B Share Scheme at a general meeting of the Company held on 5 April 2024
(the "General Meeting"). Following that approval the Company is announcing an
initial return of Capital via the B Share Scheme.

The Company's managed wind-down investment policy was approved by shareholders
in June 2023. In the six months ending 31 March 2024, as indicated in the
monthly updates, the Company has made progress in realising value both through
debt repayments and the sale of equity securities, raising a total of
approximately $58 million. As noted in the updates, these proceeds were
applied in part to paydown the Company's gearing facility which, over the same
period, was reduced by approximately $41 million. These repayments have
reduced the Company's gearing to around $43 million, from $84 million as at 1
October 2023 and the gearing ratio has declined from 0.27x to 0.15x.
Shareholders should note the gearing ratio could fluctuate as the Company
progresses the managed wind-down.

After taking into account the contractually required reduction to the
Company's gearing facility as well as preserving liquidity for foreign
exchange hedging and working capital requirements, the Board has decided to
make an initial distribution to shareholders of $15 million, equivalent to
approximately £11.9 million as at the date of release, through the issue and
redemption of B Shares. The capital to be returned represents approximately
5.12 per cent. of the Company's Net Asset Value as at 31 January 2024.

Pursuant to the authority received from shareholders at the General Meeting B
Shares of 1 penny each will be paid up out of the reserves of the Company and
issued to all Shareholders by way of a bonus issue pro-rata to their holding
of Ordinary Shares held at the Record Date of 6p.m. on 18 April 2024. The B
Shares will be issued on 19 April 2024 and redeemed at 1 penny per B
Share. The Redemption Date in respect of this initial return of capital is 25
April 2024. The proceeds from the redemption of the B Shares will be sent to
uncertificated Shareholders through CREST or via cheque to certificated
Shareholders on or around 10 May 2024.

Shareholders are reminded that the issue of B Shares will not reduce the
number of the Company's ordinary shares in issue. However, following the issue
and redemption of B Shares, the NAV (and NAV per ordinary share) will be
reduced by the total amount of capital returned and the share price is likely
to reflect the reduction in NAV. The pence per ordinary share amount of any
dividends is therefore expected to reduce as a consequence of the reduction in
NAV and, over time, through the changing composition of the portfolio.

The Company will continue to realise value from its debt and equity positions
and will allocate the proceeds as between the repayment of the Company's
borrowings and further returns of capital using the B Share Scheme, and taking
into account the foreign exchange and other working capital needs of the
Company. We are not able to specify the timing and amount of future returns,
which will continue to depend on the repayment of the Company's debt assets as
well as the sale of other securities. One of the advantages of the B Share
Scheme is that now it is in place, returns of capital can be made to
shareholders on a more cost-effective basis than through a tender offer. This
would allow for smaller and potentially more frequent returns to be made.

Terms used and not defined in this announcement have the meanings given to
them in the circular to the Company's shareholders dated 15 March 2024.

Timetable

It is expected that the timetable will be as follows:

 Record Date of initial return of capital                     6 p.m. on 18 April 2024
 Issue of Bonus shares                                        19 April 2024
 Redemption Date of initial return of capital                 25 April 2024
 Payment date for CREST                                       10 May 2024
 Dispatch of cheques in respect of certificated shareholders  10 May 2024

 

Enquiries:

For further information please contact:

 VPC Specialty Lending Investments PLC             via Jefferies or Winterflood (below)

 Graeme Proudfoot

 Victory Park Capital                              via Jefferies or Winterflood (below) info@vpcspecialtylending.com

 Gordon Watson

 Sora Monachino

 Jefferies International Limited                   Tel: +44 20 7029 8000
 Stuart Klein
 Gaudi le Roux

 Winterflood Securities Limited                    Tel: +44 20 3100 0000
 Joe Winkley
 Neil Morgan

 Montfort Communications                           Tel: +44 (0)7717 857736

 Matthew Jervois                                   vpc@montfort.london

 Link Company Matters Limited (Company Secretary)  Tel: +44 20 7954 9567

                                                   Email: VPC@linkgroup.co.uk

 

About VPC Specialty Lending Investments PLC

VPC Specialty Lending Investments PLC (Company No. 9385218) is a UK listed
investment trust focused on realising the Company's investments in an orderly
manner, that is, with a view to achieving a balance between returning cash to
Shareholders promptly and maximising value. The Company is focused on
asset-backed lending to emerging and established businesses with the goal of
building long-term, sustainable income generation. Asset backed lending
affords various structural protections and covenants which are designed to
limit downside risk while providing shareholders with strong income returns.

 

Further information on VPC Specialty Lending Investments PLC is available at:
http://vpcspecialtylending.com (http://vpcspecialtylending.com) .

 

LEI: 549300UPEXC5DQB81P34

 

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