Retirement of 2013 Zero Dividend Preference Shares

RNS Number : 0369E

J.P. Morgan Private Equity Ltd

07 May 2013

 



J.P. Morgan Private Equity Limited

PO Box 60, Carinthia House, 9-12 The Grange, St Peter Port, Guernsey GY1 4BF

www.jpelonline.com

RETIREMENT OF 2013 ZERO DIVIDEND PREFERENCE SHARES

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GUERNSEY, 7 MAY 2013

On Monday 29 April 2013, JPEL's 2013 ZDP Shares (Ticker: JPEZ) were successfully redeemed and cancelled.  

The Final Capital Entitlement of the 2013 ZDP Shares was approximately £45.8million at retirement and paid to shareholders on record on 29 April. The redemption was financed by cash on hand, proceeds from non-core asset sales and the utilisation of the Company's credit facility.

The 2013 ZDP Shares represented approximately 40% of JPEL's three distinct classes of zero dividend preference shares as at 29 April 2013.  As a result, JPEL's total leverage has decreased by approximately 21% from $243 million at 31 December 2012, to approximately $192 million at 30 April 2013.  JPEL's annual interest expense has been reduced by approximately 26% as a result of both a decrease in overall leverage as well as the Company's new, substantially lower cost credit facility.  JPEL's leverage ratio* has decreased to approximately 33%, down from 39%, at 31 December 2012.  Additionally, JPEL's ZDP Cover Test as defined in the Company's Articles has improved from 2.7x at 31 December 2012 to approximately 3.5x at 30 April 2013.  

Six months ago, on 7 November 2012, JPEL announced a series of strategic initiatives aimed at improving the Company's capital structure, providing liquidity for holders of US$ Equity Shares and repositioning the Company's portfolio.   Over the past several months, JPEL has made significant progress with respect to each of these three key initiatives.   As of today, JPEL has:

·      Retired approximately $69.2 million in zero dividend preference shares;

·      Sold approximately $35.8 million of assets, generating $30.4 million of immediate cash proceeds (representing a 15% discount to NAV); and

·      Returned $20 million to US$ Equity Shareholders by repurchasing 31,372,548 US$ Equity Shares at a 42.6% discount to the prevailing NAV.

JPEL will continue to attempt to capitalise on the disconnect between its US$ Equity Share price and the value of its underlying assets, while simultaneously using distributions or selected asset sales to reduce outstanding leverage and its overall cost of capital.  The Company is exploring the sale of several other non-core, pre-credit crisis assets in the secondary market.  JPEL anticipates making further announcements regarding any potential strategic initiatives in due course.

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About J.P. Morgan Private Equity Limited

J.P. Morgan Private Equity Limited is a Guernsey registered and incorporated, London Stock Exchange-listed, closed-ended investment company (LSE: JPEL, JPZZ, JPSZ) designed primarily to invest in the global private equity market.  The investment objective of the Company is to achieve both short and long-term capital appreciation by investing in a well diversified portfolio of private equity fund interests and by capitalising on the inefficiencies of the secondary private equity market.  On 17 August 2009, JPEL issued warrants free of subscription cost to shareholders on record.  The warrants are publicly traded on the London Stock Exchange under the symbol "JPWW."

* Total leverage ratio is defined as current value of the outstanding ZDP liabilities, plus leverage drawn under the Company's credit facility, divided by JPEL's Total Assets.

For further information please contact:

J.P. Morgan Private Equity Limited

Greg Getschow  

[phone]

[e-mail]  

Rosemary DeRise / Samantha Ladd

[phone]  / [phone]  

[e-mail] / [e-mail]

 

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