Notice of compulsory partial redemption of shares

RNS Number : 2597D

FRM Credit Alpha Limited

14 May 2012

 



FRM Credit Alpha Limited

(the "Company")

Notice of compulsory partial redemption of shares

Following on from the distributions of cash to shareholders in May 2011, July 2011 and January 2012, the Company has resolved to return approximately £2.7 million by way of a further compulsory partial redemption of shares (the "Redemption") at a price based on the Company's final NAV per share as at 31 May 2012.  The Company's NAV as at 31 May 2012 is expected to be published on or around 25 June 2012.  Payments of Redemption monies are expected to be effected either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form) by 29 June 2012.  Certificated shareholders must send all of their share certificates to the Company's Registrar in order to receive their Redemption monies.

The Redemption will be effected pro rata to holdings of shares on the register at the close of business on 25 June 2012 (the "Redemption Date").  Based on the Company's current estimated NAV, approximately 21.12 per cent. of the Company's issued share capital (that is 21.12 shares for every 100 held (the "Redemption Ratio")) would be redeemed on the Redemption Date.  Further more detailed information will be released in due course.  Fractions of shares produced by the Redemption Ratio will not be redeemed and so the number of shares to be redeemed for each shareholder will be rounded down to the nearest whole number of shares. The Redemption is equivalent to approximately 16.2 pence per share.

The Redemption amount comprises the monies from the realisation of the Company's investments received up to and including 11 May 2012 pursuant to the managed wind-down of the Company, less the costs and expenses of this Redemption and cash being retained for the Company's working capital requirements.  The costs and expenses of this Redemption are estimated not to exceed £5,000.

The Company currently has 16,644,179 shares in issue.  All of the shares redeemed on the Redemption Date will be cancelled.

The shares will be disabled in CREST on the Redemption Date and the existing ISIN number GG00B7869679 (the "Old ISIN") will expire.  The new ISIN number in respect of the remaining shares which have not been redeemed will be enabled and available for transactions from and including 26 June 2012.  Up to and including the Redemption Date, shares will be traded under the Old ISIN and as such, a purchaser of such shares may have a market claim for a proportion of the Redemption proceeds following the activation of the new ISIN.  CREST will automatically transfer any open transactions as at the Redemption Date to the new ISIN.  

Enquiries:

Chris Brierley                                                                    020 7968 6136

(Financial Risk Management Limited)

Jane Lewis                                                                          020 3100 0295

(Winterflood Investment Trusts)

 

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