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JZ Capital Ptnrs Ltd: Updates in relation to Senior Facility

JZ CAPITAL PARTNERS LIMITED
(a closed-end collective investment scheme incorporated with limited liability
under the laws of Guernsey with registered number 48761)
LEI: 549300TZCK08Q16HHU44

Updates in relation to Senior Facility, Real Estate Valuations and Secondary
Sale

Recommencement of NAV announcements

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 ("MAR").

 
8 October 2020

On 25 September 2020, JZ Capital Partners Limited ("JZCP" or the "Company"),
the London listed fund that invests in US and European micro-cap companies and
US real estate, announced that it had received consent from Guggenheim
Partners to make the relevant interest payment due on 30 September 2020 to the
holders of its Convertible Unsecured Loan Stock due 2021 ("CULS").  The
Company subsequently made the CULS interest payment in full on that date.

It was also noted in that announcement that the Company expected to breach its
minimum asset coverage ratio under its senior facility with Guggenheim
Partners at the end of September 2020, and that the aforementioned consent to
make the CULS interest payment required the Company to have entered into
amendments to its senior facility by 7 October 2020; the failure to do so
would have also constituted an event of default under the facility.  The
Company today confirms that, whilst it has not yet reached final agreement
with its lenders as to the amended terms of the facility and is therefore in
breach of its minimum asset coverage ratio and in default under the facility,
the Company remains in discussions and considers that it is close to procuring
the necessary waivers from and securing agreement with its lenders as to the
amended facility terms.  The Company expects to make a further announcement
shortly.

For completeness, the Company also notes that, if the existing or any other
event of default under the senior facility were to continue on any subsequent
CULS interest payment date, the Company would be prohibited from making
payments to the holders of the CULS, absent a waiver, a further consent or the
amended terms of the facility allowing for such payments to be made.

Separately, the Company refers to its earlier announcement made on 17
September 2020 in relation to anticipated write downs to its real estate
investments including on account of the Covid-19 pandemic.  The Company can
today provide a further update on this matter and accordingly confirms that it
expects to experience net write downs to its real estate investments that may
result in a mark down to its net asset value of approximately $110 million
(revised upwards from the range of between $80 to $100 million announced
previously).  Having now provided this further update (and the Company
considering that it will, at the time of release of its upcoming half year
results, be better placed to make informed judgements as to the impact on
value resulting from Covid-19), the Company can confirm that it intends to
recommence its monthly NAV announcements following the publication of those
results for the six-month period ended 31 August 2020.

Finally, the Company also wishes to provide an update in relation to the
proposed secondary sale of certain of its US micro-cap assets.  The secondary
sale, like the Company's discussions with its lenders, has continued to
progress in a positive manner and an agreement is expected to be reached and
announced shortly.

Market Abuse Regulation:

The information contained within this announcement is 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 for the release of this announcement on behalf of
JZCP is David Macfarlane, Chairman of JZCP.

For further information:

 Ed Berry FTI Consulting                                                                  +44 (0) 20 3727 1046  
 David Zalaznick Jordan/Zalaznick Advisers, Inc.                                          +1 (212) 485 9410     
 Sam Walden Northern Trust International Fund Administration Services (Guernsey) Limited  +44 (0)1481 745385    

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, the Investment Adviser
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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