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

VPC Specialty Lending InvestmentsAnnouncement

12/05/2025 07:00

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RNS Number : 1651I  VPC Specialty Lending Invest. PLC  12 May 2025

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").

12 May 2025

VPC Specialty Lending Investments PLC

Second Return of Capital through the B Share Scheme

The Board of VPC Specialty Lending Investments plc (the "Company") is pleased
to announce a second return of capital via the B Share Scheme.

The Company's managed wind-down investment policy was approved by shareholders
in June 2023. Since the initial B-Share distribution in April 2024, the
Company has made progress in realising value both through debt repayments and
the sale of equity securities. On 9 May 2025, the Company received full
repayment of the Senior Secured Note of $50.3 million from the refinance of
the Deinde Group, LLC (d/b/a, Integra Credit) ("Integra") senior secured term
loan. After the refinance, the Company still holds a residual term note of
$18.7 million in Integra which consists of the existing non-interest-bearing
term note and uncollected accrued interest at the time of the transaction.

After considering the Company's projected working capital requirements, the
Board has decided to make a second distribution to shareholders of £43
million through the issue and redemption of B Shares. The capital to be
returned represents approximately 29.3 percent of the Company's Net Asset
Value as at 31 December 2024.

Pursuant to the authority received from shareholders at a general meeting of
the Company held on 5 April 2024 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 6 p.m. on 21 May 2025. The B Shares will be issued on 22 May
2025 and redeemed at 1 penny per B Share. The Redemption Date in respect of
this initial return of capital is 29 May 2025. 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 12 June 2025.

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 required dividend distributions and
further returns of capital through the B-Share scheme and/or alternative forms
of return after considering the working capital needs of the Company. The
Board is 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 returns of capital can be made to shareholders on a more
cost-effective basis than, for example, through a tender offer and 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:

 Announcement of B Share exchange ratio                       20 May 2025
 Record Date of initial return of capital                     6 p.m. on 21 May 2025
 Issue of Bonus shares                                        22 May 2025
 Redemption Date of initial return of capital                 29 May 2025
 Payment date for CREST                                       12 June 2025
 Dispatch of cheques in respect of certificated shareholders  12 June 2025

 

Enquiries

For further information, please contact:

 

 Victory Park Capital                                   via Winterflood (below)

 Gordon Watson                                          info@vpcspecialtylending.com

 Sora Monachino

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

 Haris Khawaja

 MUFG Corporate Governance Limited (Company Secretary)  Tel: +44 20 7954 9567

                                                        Email: vpc@cm.mpms.mufg.com

 

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.

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

LEI: 549300UPEXC5DQB81P34

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