Intermediate Capital Group plc : Pre Close Trad...

 

 

Embargoed until 7.00am on Friday 28 September 2012

Intermediate Capital Group plc (ICG) the specialist investment firm and asset manager releases a pre-close trading update for the period to 27 September 2012.

Highlights

• AUM rises to €12 billion 

• Good progress on fund raising  

• Investment company portfolio resilient with low level of realisations  

• Successful second retail bond issuance resulting in additional £80 million debt finance 

Fund Management Company

Assets under management have increased to €12 billion primarily due to additional investor commitments to ICG Europe Fund V.

Our funds' investment portfolios continue to show resilience and our funds have maintained their strong track record. We have further strengthened our distribution team and are seeing early results from our enhanced distribution capabilities through increased investor interest across geographies for our ICG Europe Fund V. The fund has received commitments of €1.5 billion to date and we are on track to reach our €2 billion target in the fourth quarter of 2012.  We have also launched our Total Credit Fund which combines investments in high yield bonds, senior loans and CLO debt.  The fund is off to a strong start with a 4% return since inception on 13 July.

Investment Company

We have benefitted from a strong deal flow across geographies and have invested in five new assets deploying £140 million over the period.  In addition to the SCF, Symington and bank portfolio transactions reported in the July IMS, we invested in Esmalglass in Europe and Convergint in the US.

The performance of the Investment Company's investment portfolio remains solid and we continue to expect provisions for the full year to be broadly in line with market expectations. Provisions for the first half are expected to be higher than in the second half as we have taken significant provisions against two assets undergoing restructurings.

Realisations for the first half have been lower than for this period last year resulting in positive net new lending. A total of £70 million of principal repayments have been received in the first half, £12 million of rolled up interest has been crystallised and there have been realised capital gains of £10 million. A number of our investments are currently in active exit processes but visibility on timing remains unclear as transactions are often delayed in the current volatile environment. This will have a positive impact on our overall return on investments as our mezzanine financing runs for longer than historical averages, but it leads to low levels of realisations in the short term.

Following the three year extension of our main banking facilities in the summer, we have raised another £80m through a highly successful retail bond issuance, further strengthening our balance sheet. Undrawn debt facilities at 30 September will be £440 million.

Half Year Results statement will be published on 21 November 2012 at 7.00am

Ends

Investor enquiries
Philip Keller, CFO, ICG  [phone]
Ian Stanlake, Investor Relations, ICG  [phone]

Media enquiries
Neil Bennett, Maitland  [phone]
Tom Eckersley, Maitland  [phone]

This Pre-Close trading 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 Pre-Close trading Statement should not be relied on by any other party or for any other purpose.

This Pre-Close trading Statement may contain forward looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward looking information.

These written materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption there from. The issuer has not and does not intend to register any securities under the US Securities Act of 1933, as amended, and does not intend to offer any securities to the public in the United States. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in these written materials, will not be accepted.

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Source: Intermediate Capital Group plc via Thomson Reuters ONE

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