Interim Management Statement
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Embargoed until 7.00am on Tuesday 25 January 2011
Interim Management Statement
for the three months to 31 DECEMBER 2010
Intermediate Capital Group PLC (ICG) releases its Interim Management Statement
for the three months to 31 December 2010.
Christophe Evain, CEO, commented: "Overall we are pleased with the performance
over the last three months. Â Our investment portfolio continues to perform well
and we have made progress in growing our fund management business."
Manage our portfolio to maximise value
The operational performance of our portfolio companies has further improved
since the end of September. As of December, 70% of our investment portfolio
companies were performing at or above the prior year level, up from 62% in
September, with improvements in both EBITDA and revenue. Â We therefore expect
impairments in the second half to continue the downward trend seen in the past
year and a half.
Capital gains amounted to £17 million for the three months to 31 December 2010.
The outlook for realisations remains favourable and we expect a strong
contribution from capital gains in the fourth quarter.
Repayments for the three months were £64 million.
Invest selectively
During the period we invested approximately £32 million on behalf on the
Investment Company. Â In addition, we have committed to fund the Courtepaille
transaction, deploying c. £34million on behalf of our Investment Company and
£102 million on behalf of our third party funds, through an innovative single
bond.
New investments for our Investment Company amounted to c. £194 million over the
nine months to 31 December 2010 (including the Courtepaille commitment). While
we remain selective given the current environment, our investment pipeline
continues to build across our global office network. We therefore expect our
Investment Company to deploy capital in excess of our prior guidance of £150
million - £200 million for the full financial year.
At 31 December 2010 our undrawn debt facilities were £832 million. We are today
announcing a public rating of BBB- with stable outlook from Fitch Ratings.
Together with our third party funds we have an investment capacity of over €1.5
billion. This highly liquid position is a key competitive advantage in the
current market.
Grow our Fund Management Company
We have taken further steps to grow our Fund Management Company. Â AuM at 31
December 2010 were €12.2 billion, up 4% compared to 30 September 2010.
On 17 December we announced that we were finalising the acquisition of a 51%
stake in Longbow Real Estate Capital ("Longbow"), the UK real estate debt
specialist, subject to regulatory approvals.
Longbow is a specialist fund manager providing mezzanine finance and debt to the
UK commercial property market, with £150 million of AuM. Longbow's founders have
worked together since 1998 and have established a successful track record in
originating and managing real estate senior debt and mezzanine. As a result of
the credit crisis, the provision of debt from banks to the UK real estate sector
has materially reduced, presenting an opportunity for fund managers with access
to capital to provide mezzanine finance for both existing and new transactions.
With the support of ICG, Longbow has launched a dedicated fund to address this
market opportunity.
On 22 December, we acquired  the management contract of Resource Europe CLO I
B.V., a €300 million collateralized loan obligation from Resource Europe
Management Limited, a subsidiary of Resource America, Inc. (NASDAQ: REXI).
Our European High Yield Bond fund and our next European mezzanine fund will be
launched in the first half of calendar year 2011.
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Enquiries:
Analyst / Investor enquiries
Christophe Evain, CEOÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â +44 (0)
20 3201 7700
Philip Keller, CFO,                        +44 (0)
20 3201 7700
Jean-Christophe Rey, Investor Relations                +44 (0)
20 3201 7768
Media enquiries
Mark Lunn, Corporate Communications                +44 (0)
20 3201 7769
Charlotte Kirkham, M: Communications                  +44 (0)
20 7920 2331
This interim management statement has been prepared solely to provide additional
information to shareholders and meets the relevant requirements of the UK
Listing Authority's Disclosure and Transparency Rules. The Preliminary Results
statement should not be relied on by any other party or for any other purpose.
About ICG
Intermediate Capital Group specialises in structuring and providing mezzanine
finance, leveraged credit and minority equity, with approximately €12 billion
under management in proprietary capital and third party funds. A FTSE 250
investment firm and fund manager listed on the London Stock Exchange, ICG is one
of the largest independent mezzanine providers in the world with investment
portfolios in Europe, Asia Pacific and the US.  Founded in 1989, ICG also has
one of the longest track records of any institutional investor in European
senior loans and high yield bonds. ICG's experienced global investment team
operate locally from its head office in London and offices in Paris, Madrid,
Stockholm, Frankfurt, Amsterdam, Hong Kong, Sydney and New York.
Further information is available at: www.icgplc.com
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Source: Intermediate Capital Group PLC via Thomson Reuters ONE
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