Recent Investment Announcement

RNS Number : 3255T

EJF Investments Ltd

13 November 2019

 

FOR IMMEDIATE RELEASE

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM AND THE REPUBLIC OF IRELAND), AUSTRALIA, CANADA, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO.

13 November 2019

EJF Investments Ltd

Recent Investment Announcement

The Board of EJF Investments Ltd ("EJFI" or the "Company") is pleased to announce that the preferred shares held by the Company in Trust Preferred Insurance Note Securitization 2016-1 Ltd ("TPINS") were redeemed in full on 12 November 2019. 

TPINS was a securitisation of approximately USD 350 million trust preferred securities, senior notes and surplus notes issued by U.S. insurance companies primarily within the small-cap insurance sector. In line with the investment thesis of EJF Investments Manager LLC, TPINS was called after experiencing a high level of collateral prepayments with approximately 40% of the underlying collateral having been redeemed since the original closing date of TPINS in March 2016.

TPINS was restructured in December of 2017 and, in connection with the restructuring, the Company made a risk retention investment (the "Investment") in TPINS of approximately £11.5 million¹ or 9.5% of NAV as at 30 September 2019.  The Investment was redeemed at a value greater than par and generated an internal rate of return of approximately 11.8% for the Company; when taking into account the revenue stream from the collateral management fee, the internal rate of return was approximately 12.6%.

As a result of the redemption, the collateral management agreement between TPINS and EJF CDO Manager LLC was terminated.

The Company has a developed investment pipeline and anticipates that the proceeds will be deployed in the near term.

¹Value of TPINS attributable to the Company converted using a GBP/USD FX Rate of 1.2287 as at 30 September 2019.

ENQUIRIES

For the Investment Manager

EJF Investments Manager LLC

Peter Stage / Hammad Khan / Matt Gill

[e-mail] / [e-mail] / [e-mail]

[phone] / [phone] / [phone]

For the Company Secretary and Administrator

BNP Paribas Securities Services S.C.A Jersey Branch

[e-mail]

[phone] / [phone]

For the Broker

Numis Securities Limited

David Luck

[e-mail]

[phone]

About EJF Investments Ltd

EJFI is a registered closed-ended limited liability company incorporated in Jersey under the Companies (Jersey) Law 1991, as amended, on 20 October 2016 with registered number 122353. The Company is regulated by the Jersey Financial Services Commission (the "JFSC"). The JFSC is protected by both the Collective Investment Funds (Jersey) Law 1988 and the Financial Services (Jersey) Law 1998, as amended, against liability arising from the discharge of its functions under such laws.

The JFSC has not reviewed or approved this announcement.

LEI:  549300XZYEQCLA1ZAT25

Investor information & warnings

The latest available information on the Company can be accessed via its website at www.ejfi.com. 

This communication has been issued by, and is the sole responsibility of, the Company and is for information purposes only. It is not, and is not intended to be an invitation, inducement, offer or solicitation to deal in the shares of the Company. The price and value of shares in the Company and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of shares in the Company. An investment in the Company should be considered only as part of a balanced portfolio of which it should not form a disproportionate part. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. 

 

END

 

 

MSCEAKFDFEANFFF