Strategic Initiatives Update

RNS Number : 9975H

J.P. Morgan Private Equity Ltd

27 June 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

STRATEGIC INITIATIVES UPDATE

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GUERNSEY, 27 JUNE 2013

On 24 June 2013, using distributions received from JPEL's mature private equity portfolio, the Company paid down approximately $30 million, or 35%, of the drawn portion of its revolving credit facility as at 30 April 2013. The current amount drawn under the Company's credit facility after this repayment is approximately $56 million.  JPEL's $150 million multi-currency credit facility matures in January 2017.  

As a result of this repayment, JPEL's total leverage has decreased by approximately 33% from $243 million at 31 December 2012, to approximately $164 million at 27 June 2013.  JPEL's leverage ratio* has decreased to approximately 29.8%, down from 38.5% as at 31 December 2012.      

Several 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 seven months, JPEL has made significant progress with respect to each of these three key initiatives.  As of today, JPEL has:

·      Reduced total indebtedness by approximately $79 million as compared to 31 December 2012;

·      Reduced the company's annualized interest expense by 33%;

·      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 (representing a net gain per share when factoring in asset sales).

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.  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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