VPC Specialty Lending Invest. PLC Proposed Managed Wind-Down (5456K)
22 Diciembre 2022 - 1:00AM
UK Regulatory
TIDMVSL
RNS Number : 5456K
VPC Specialty Lending Invest. PLC
22 December 2022
22 December 2022
VPC Specialty Lending Investments PLC
Proposed Managed Wind-Down
The Board of VPC Specialty Lending Investments PLC ("VSL" or the
"Company") has for some time been reviewing options for reducing
the continuing deep discount of the Company's share price to Net
Asset Value (the "Discount"). The Board has taken professional
advice and has also consulted the Company's major Shareholders.
Given the current level of the Discount, the Board considers it
likely that the Company would be required to propose a 25% exit
opportunity following the AGM in 2023, in keeping with the
commitment it made to Shareholders in 2020 (the "25% Exit
Opportunity").
The Board and its advisers do not believe that the 25% Exit
Opportunity alone would have a lasting impact on the Discount and
that it might have a potentially detrimental impact for the
Company's Shareholders. This is because the Company would shrink in
size, resulting in the Company's shares potentially becoming less
liquid and the ratio of fees and other costs increasing as a
proportion of Net Asset Value.
After further consultation with its major Shareholders, the
Board has therefore determined that it would be in the best
interests of the Company and Shareholders to put forward formal
proposals to Shareholders for a managed wind-down of the Company
instead of the 25% Exit Opportunity.
The Board intends to publish a circular in due course to convene
a general meeting at which it will seek approval from Shareholders
by ordinary resolution to amend the Company's investment objective
and investment policy required for a managed wind-down.
If approved by Shareholders, the Board will then endeavour to
realise all of the Company's investments in a cost-effective manner
that achieves a balance between maximising the value received from
investments and making timely returns of capital to
shareholders.
The Board also notes that on 7 December 2022, it announced that
it had received a request seeking to requisition a general meeting
to consider certain changes to the Company's investment policy and
share capital structure (the "Requisition").
The Board has engaged with the signatories of the Requisition,
being Global Value Fund Limited, Staude Capital Value Fund LP and
Metage Funds Limited, and the signatories have agreed to withdraw
the Requisition on the basis that their proposals will not be
necessary given the Board's intention to recommend a managed
wind-down of the Company.
Graeme Proudfoot, chairman of the Company commented:
" The Board has been consistently focused on the issue of the
continuing discount, and the provisions and thresholds established
in 2020 were designed to provide clear measures of future
performance. Two of the three performance thresholds have been met.
The third, being the discount measure, is not due to be assessed
until the end of March 2023. Over the last 3 years, Shareholders
have received an annualised share price total return of 13.8% and
an annualised NAV total return of 11.3% together with a dividend
that has been maintained for over 4 years. Notwithstanding, as a
Board, we need to take decisions that we feel are in the best
long-term interests of our shareholders, and we have decided that,
rather than to shrink the size of the trust and decrease liquidity
through the 25% Exit Opportunity, the better course of action is
for a wind down of the Company which will provide a managed exit
for all shareholders."
Brendan Carroll, Co-Founder and Senior Partner of the Company's
investment manager, Victory Park Capital Advisors, LLC ("VPC"),
said:
"VPC has always been focused on maximizing value for VSL
shareholders and continuing to maintain the Company's dividend
yield. Notwithstanding the Company's strong NAV returns and
consistent dividend yield since inception in 2015, we acknowledge
the Company's resilient discount and will prudently take steps to
wind down VSL over the course of the coming years. VPC's overall
business continues to grow, having recently closed on over $2.4
billion in investor capital and deployed over $1 billion in the
last twelve months on behalf of institutional investors around the
world."
A further announcement containing full details of the proposals
will be made when the circular is published.
The information contained within this announcement constitutes
inside information. The person responsible for arranging for the
release of this announcement on behalf of the Company is Michael
Conway of Link Company Matters Limited.
Enquiries
Victory Park Capital via Jefferies or Winterflood
Gordon Watson (below)
Sora Monachino info@vpcspecialtylending.com
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
Gay Collins/Matthew Jervois + 44 (0)7798 626282/+44 (0)7717
857736
vpc@montfort.london
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END
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