Orderly Realisation and Return of Capital

RNS Number : 0218E

ICG-Longbow Snr Sec UK Prop DebtInv

03 November 2020

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR").

3 November 2020

ICG-Longbow Senior Secured UK Property Debt Investments Limited (the Company)

Orderly realisation and return of capital to shareholders

Following a review of the Company's strategy and in line with the recommendation of the investment adviser, ICG Real Estate, the Board has decided to recommend to shareholders that the investment objective and policy of the Company are amended so that the Board can pursue a strategy of orderly realisation and the return of capital over time to shareholders.

The underlying performance of the portfolio has proved resilient and defensive through the pandemic, with no impairments, enabling the Company to deliver a fully covered dividend to shareholders in September 2020. The Board's focus is, however, on continuing to maximise shareholder value and it therefore believes that given the current economic backdrop and re-rating of the sector, an orderly realisation is the most prudent option.

In reaching this decision, the Board took account of a number of factors including the prevailing discount to net asset value on the shares, the market capitalisation and liquidity of the shares, feedback received from shareholders and the expected maturity profile of the investment portfolio. Further information on the portfolio including the maturity profile can be found on the Company's website: https://www.lbow.co.uk/.

The orderly realisation strategy would not result in the liquidation of the Company in the immediate future or require the Company to dispose of assets within a defined time frame. The proposed new strategy, if approved, would be implemented in such a manner that would seek to maximise value to shareholders. The Company's listing would be maintained during the orderly realisation.

The Board intends, subject to the United Kingdom Financial Conduct Authority first approving the proposed amendments to the investment objective and policy, to publish a circular to shareholders to convene an extraordinary general meeting at which it will seek approval from shareholders to amend the Company's investment objective and policy, the Articles of Incorporation and approve any related matters necessary to facilitate an orderly realisation. It is the Board's intention to maintain the current target level of dividend, whilst the Company remains substantially invested, should the proposals be approved by shareholders (this is a target only and does not constitute a profit forecast).

A schedule of questions and answers concerning this proposal will be posted on the Company's website later this week.

For further information, please contact:

Ocorian Administration (Guernsey) Limited:
Rosemary Osborne-Burns	[phone]
Cenkos Securities plc:
Will Rogers Rob Naylor Will Talkington	[phone] [phone] [phone]
Maitland/AMO Limited:	[e-mail]
Sam Turvey Finlay Donaldson	[phone] [phone]
ICG Real Estate :
Olivia Montgomery	+ 44 (0)20 3545 1543

 

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