REG - Litigation Cap. Mgmt - New Credit Facility

Litigation Capital ManagementAnnouncement

02/12/2024 07:00

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RNS Number : 2988O  Litigation Capital Management Ltd  02 December 2024

2 December 2024

Litigation Capital Management Limited

("LCM" or the "Company")

Significantly Expanded US$75m Credit Facility at Below 10% Interest

 

Litigation Capital Management Limited (AIM:LIT), a leading international
alternative asset manager of disputes financing solutions, is pleased to
announce it has secured a new, expanded credit facility (the "Credit
Facility") with Northleaf Capital Partners ("Northleaf"), a global private
markets investment firm experienced in litigation finance. The new Credit
Facility provides access to US$75 million in initial credit with the potential
to upsize by a further US$75 million (up to US$150m in total).

The Credit Facility offers significant flexibility to drive LCM's growth
strategy, supporting both direct investments and LCM's co-investments into
cases funded alongside its managed funds business. It is secured against LCM's
assets, is available for general corporate purposes, and has an overall term
of four years.

Key features of the Credit Facility include:

Multi-currency availability: Available in USD, GBP, and AUD, the facility
supports LCM's global financing needs.

Cost structure: Interest is set at the relevant central bank rate plus 5.25%
(compared to central bank rate plus 8% for the prior facility) and is charged
on the amount of the facility that has been drawn. Based on current central
bank rates, this implies an interest rate below 10%. Unlike the prior
facility, there is no profit participation in LCM's direct investments for the
lender.

Drawdown period and term: The Credit Facility has a four-year term, with the
ability to draw down funds during the initial two years. It includes the usual
financial covenants and reporting requirements typical of facilities of this
nature.

Patrick Moloney, CEO of LCM, commented: "Securing this expanded Credit
Facility is a significant step in LCM's growth journey. With this increased
capital flexibility, we are well-positioned to scale our investment portfolio,
capture new opportunities, and drive sustainable long-term growth. We are
excited to leverage this facility to advance our strategic objectives and
support the ongoing growth of our dispute financing solutions."

Enquiries

 Litigation Capital Management                           c/o Tavistock PR
 Patrick Moloney, Chief Executive Officer

 David Collins, Chief Financial Officer

 Cavendish (Nomad and Joint Broker)                      Tel: 020 7523 8000
 Jonny Franklin-Adams and Rory Sale (Corporate Finance)

 Tim Redfern and Jamie Anderson (Corporate Broking)
 Canaccord Genuity (Joint Broker)                        Tel: 020 7597 5970
 Bobbie Hilliam

 Tavistock PR                                            Tel: 020 7920 3150
 Katie Hopkins                                           lcm@tavistock.co.uk

 Simon Hudson

 

NOTES TO EDITORS

Litigation Capital Management (LCM) is an alternative asset manager
specialising in disputes financing solutions internationally, which operates
two business models. The first is direct investments made from LCM's permanent
balance sheet capital and the second is third party fund management. Under
those two business models, LCM currently pursues three investment strategies:
Single-case funding, Portfolio funding and Acquisitions of claims. LCM
generates its revenue from both its direct investments and also performance
fees through asset management.

LCM has an unparalleled track record driven by disciplined project selection
and robust risk management.

Currently headquartered in Sydney, with offices in London, Singapore, Brisbane
and Melbourne, LCM listed on AIM in December 2018, trading under the ticker
LIT.

www.lcmfinance.com (http://www.lcmfinance.com)

 

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