REG-JZ Capital Ptnrs Ltd: Redemption of Subordinated Loan Notes

JZ Capital PartnersAnnouncement

15/02/2023 07:15

JZ CAPITAL PARTNERS LIMITED (the "Company" or "JZCP")
(a closed-ended investment company incorporated with limited liability under
the laws of Guernsey with registered number 48761)
LEI 549300TZCK08Q16HHU44

Redemption of Subordinated Loan Notes

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) NO. 596/2014, WHICH FORMS PART OF UK LAW BY VIRTUE OF
THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

15 February 2023

JZ Capital Partners Limited, the London listed fund that has investments in US
and European microcap companies and US real estate, is pleased to announce
that, following a number of recent realisations (including most recently the
closing of the Deflecto Holdings' portfolio company disposal as announced by
the Company on 24 January 2023) and consistent with the Company's investment
policy of repaying its debt obligations, the Company has undertaken an early
voluntary redemption in full of its subordinated 6 per cent. loan notes issued
to David W. Zalaznick and John (Jay) Jordan II and their affiliates (the
"Noteholders") which were due to mature on 30 September 2023 (the
"Subordinated Loan Notes"). In connection with the voluntary redemption, the
Company has funded the payment to the Noteholders of approximately US$32
million in respect of the principal and interest outstanding under the
Subordinated Loan Notes.

As previously announced, voluntary redemptions of the Subordinated Loan Notes
are permitted, provided certain financial tests as set out within the senior
facility agreement provided by WhiteHorse Capital Management, LLC (the "Senior
Facility") are satisfied. These include (a) there being no event of default in
existence under the Senior Facility, (b) the Company maintaining a minimum
asset coverage ratio (calculated by reference to eligible assets, subject to
customary ineligibility criteria and concentration limits, plus unrestricted
cash) of not less than 4.00 to 1.00, and (c) ensuring the Company retains an
aggregate amount of unrestricted cash and cash equivalents of not less than
US$12.5 million.

Following the voluntary redemption of the Subordinated Loan Notes, the Company
has approximately US$105 million of cash and cash equivalents. The Company
needs to continue to maintain such cash liquidity to invest in accordance with
its existing investment policy to maximise the value of its existing portfolio
investments where appropriate, as well as in the current uncertain economic
climate to support them and so as to meet existing obligations as they fall
due.

The Company remains focused upon its existing investment policy as approved by
shareholders, which includes not making further investments outside of
existing obligations or to support existing portfolio companies, and with the
intention of realising the maximum value of the Company's investments and,
after repayment of all its indebtedness, to return capital to shareholders.

Market Abuse Regulation

The information contained within this announcement is considered by the
Company to constitute inside information as stipulated under MAR. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

The person responsible for arranging the release of this announcement on
behalf of the Company is David Macfarlane, Chairman of JZCP.

______________________________________________________________________________________

For further information:

 Kit Dunford / Ed Berry FTI Consulting                                                        +44 (0)7717 417 038 / +44 (0)7703 330 199  
 David Zalaznick Jordan/Zalaznick Advisers, Inc.                                              +1 (212) 485 9410                          
 Hannah Hayward Northern Trust International Fund Administration Services (Guernsey) Limited  +44 (0) 1481 745417                        

Important Notice

This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or comparable
terminology. These forward-looking statements relate to matters that are not
historical facts. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on circumstances
that may or may not occur in the future. Forward-looking statements are not
guarantees of future performance. The Company's actual investment performance,
results of operations, financial condition, liquidity, policies and the
development of its strategies may differ materially from the impression
created by the forward-looking statements contained in this announcement. In
addition, even if the investment performance, result of operations, financial
condition, liquidity and policies of the Company and development of its
strategies, are consistent with the forward-looking statements contained in
this announcement, those results or developments may not be indicative of
results or developments in subsequent periods. These forward-looking
statements speak only as at the date of this announcement. Subject to their
legal and regulatory obligations, each of the Company, Jordan/Zalaznick
Advisers, Inc. and their respective affiliates expressly disclaims any
obligations to update, review or revise any forward-looking statement
contained herein whether to reflect any change in expectations with regard
thereto or any change in events, conditions or circumstances on which any
statement is based or as a result of new information, future developments or
otherwise.



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