Update re. Proposals for the Company's Future

RNS Number : 8027Y

SME Loan Fund PLC (The)

08 March 2017

 

THIS ANNOUNCEMENT IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.  FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY OR OTHERWISE ACQUIRE ANY SHARES OR OTHER SECURITIES OF THE SME LOAN FUND PLC IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.  

8 March 2017

THE SME LOAN FUND PLC
(THE "COMPANY" OR "SMEF")

Update re. Proposals for the Company's Future

Introduction

Further to the Company's announcement on 21 February 2017 regarding proposals for the Company's future, the Directors are pleased to announce that:

·           demand from investors to participate in the secondary placing of the 25,270,763 shares in SMEF (the "Placing Shares") held by GLI Finance Limited ("GLIF") (the "Secondary Placing") has significantly exceeded the number of SMEF shares available pursuant to the Secondary Placing and, accordingly, investor participations are being scaled back;

·           the Secondary Placing will be completed today;

·           GLIF has agreed to acquire for cash the Company's performing loans which are not consistent with SMEF's proposed future investment strategy for their aggregate face value (including accrued interest) as at 10 March 2017 of £5.27 million;

·           SQN Capital Management, LLC and its UK subsidiary SQN Asset Management Limited  (together "SQN") have been appointed as the Company's investment managers with effect from 1 April 2017;

·           SQN has appointed SMEF's current investment manager, Amberton Asset Management Limited ("Amberton"), as its sub-investment adviser in relation to SMEF's existing portfolio of loans with effect from 1 April 2017; and

·           the Company expects to post a circular to shareholders shortly to convene a general meeting of the Company at which resolutions will be proposed to amend the Company's investment policy and its articles of association.

Secondary Placing

GLIF will sell the Placing Shares, being 48.0% of the Company's issued share capital, at 90p per share pursuant to the Secondary Placing, which is being co-ordinated by Cantor Fitzgerald Europe.  Following settlement, which is expected to take place on 10 March 2017, GLIF will have sold all of its shares in SMEF.

The Secondary Placing is principally with new institutional investors and wealth managers and will significantly broaden the shareholder base of the Company and, as a result, the market liquidity in SMEF's shares should improve.  SQN will acquire 3.3 million Placing Shares, representing 6.3% of the Company's issued share capital.

Sale of Investments

Following its due diligence on SMEF's portfolio of loans, SQN identified a number of performing loans in the portfolio that are inconsistent with SMEF's proposed future investment strategy.  GLIF has agreed to acquire these loans for cash at their aggregate face value (including accrued interest) as at 10 March 2017 of £5.27 million.  Completion of the sale of these loans is expected to take place on or around 14 March 2017.

General

Further details of the proposals for the Company's future following the completion of the Secondary Placing, including the proposed amendments to the Company's investment policy and articles of association, can be found in the Company's announcement released on 21 February 2017. 

Richard Hills, Chairman of the Company, said: "On behalf of the Board and myself, we are delighted that the Placing has been such a great success and was substantially oversubscribed and we would like to thank our existing shareholders for their continued support, and to welcome our new shareholders".

"Additionally we would like to welcome the Company's new investment manager, SQN.  Without their help this transformational Placing would not have been possible and, as we turn to the future, we look forward to working with SQN to grow the fund".

Enquiries

The SME Loan Fund plc	Richard Hills (Chairman)	T: [phone]
Cantor Fitzgerald Europe	Sue Inglis (Corporate Finance) Andrew Davey (Sales) Ben Heatley (Sales)	T: [phone] T: [phone] T: [phone]
Buchanan	Charles Ryland	T :[phone]
	Victoria Hayns

Important Notes

No prospectus or offering document has been or will be prepared in connection with the Secondary Placing.  Any investment decision to buy Placing Shares pursuant to the Secondary Placing must be made solely on the basis of publicly available information.  Such information is not the responsibility of and has not been independently verified by the GLIF, Cantor Fitzgerald Europe or any of their respective affiliates.

Cantor Fitzgerald Europe is authorised and regulated in the United Kingdom by the FCA and acting only for the Company in connection with the matters described in this announcement.  Persons receiving this announcement should note that Cantor Fitzgerald Europe will not be responsible to anyone other than the Company for providing the protections afforded to customers of Cantor Fitzgerald Europe, or for advising any other person on the matters described in this announcement.

The information contained in this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.  Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.

 

END

 

 

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