VPC Specialty Lending Invest. PLC Share Buy-Back Programme and Engagement (6628S)
December 22 2016 - 11:00AM
UK Regulatory
TIDMVSL
RNS Number : 6628S
VPC Specialty Lending Invest. PLC
22 December 2016
22 December 2016
VPC Specialty Lending Investments PLC
SHARE BUY-BACK Programme and ENGAGEMENT
The Board of Directors (the "Board") of VPC Specialty Lending
Investments PLC (the "Company") (ticker: VSL) announces the Company
will commence a share buyback programme in light of the significant
disparity between the Company's share price and its Net Asset Value
(NAV) per share. In this regard, the Board announces that is has
engaged Jefferies International Limited as agent to execute share
buy-backs on behalf of the Company (the "Engagement").
The Company's shares are currently trading at a 17.9% discount
to net asset value reported as at 31(st) October 2016 (as adjusted
for the dividend declared on 17 November 2016). The Company is
committed to delivering the targeted 8.0% net dividend in the
medium term which, in the Company's opinion, should lead to a
narrowing of the discount over time.
At the same time, the Board is committed to an active discount
management policy and has adopted a programme to buy-back the
Company's issued shares opportunistically where it believes such a
purchase would be accretive to shareholder value relative to making
additional investments in the portfolio and it is in the best
interest of all shareholders to do so. These arrangements are in
accordance with the authority granted by shareholders at the
Company's Annual General Meeting on 2(nd) June 2016.
The Engagement will commence with effect from today and will,
unless extended or terminated earlier, end six months from the date
of this announcement. The share buyback programme will be reviewed
periodically. The Board advises shareholders there can be no
certainty that the Company will acquire any shares under the
programme.
Andrew Adcock, Chairman, commented: "We believe that a share
buyback programme is a sensible deployment of our capital and we
are taking this step as part of our wider strategy to improve
returns for our shareholders."
Pursuant to and during the term of the Engagement, the Company's
buy-back agent may independently of, and without influence by, the
Company, effect on-market purchases of ordinary shares of 1p
nominal value (the "Shares") from time to time at its absolute
discretion provided that the maximum price payable for a Share on
the Main Market of the London Stock Exchange plc (the "Exchange")
is an amount equal to the higher of:
a. 105 per cent. of the average market value of the Company's
Shares as derived from the London Stock Exchange Daily Official
List for the five business days immediately preceding the day on
which such Share is contracted to be purchased; or
b. the higher of the price of the last independent trade and the
highest current bid stipulated by Article 3(2) of the Commission
Delegated Regulation (EU/2016/1052) .
A buy-back of Shares pursuant to the Engagement on any trading
day may represent a significant proportion of the daily trading
volume in the Shares on the Exchange (and could exceed the 25%
limit of the average daily trading volume of the preceding 20
business days as referred to in the Commission Delegated Regulation
(EU) No. 2016/1052 on buy-back programmes).
The Company will announce any market repurchase of Shares no
later than 7.30 a.m. on the business day following the calendar day
on which the repurchase occurred. To the extent permitted by law,
Shares bought back under the Engagement will be held in treasury,
but may be cancelled subsequently.
Note 1 of Rule 37.1 of the City Code provides that where a
person who comes to exceed the limits in Rule 9 in consequence of a
company s redemption or purchase of its own shares will not
normally incur an obligation to make a mandatory offer unless that
person is a director, or the relationship of the person with any
one or more of the directors is such that the person is, or is
presumed to be, acting in concert with any of the directors. A
person who has appointed a representative to the board of the
company, and investment managers of investment trusts, will be
treated for these purposes as a director. However, there is no
presumption that all the directors (or any two or more directors)
are acting in concert solely by reason of a proposed redemption or
purchase by the company of its own shares, or the decision to seek
shareholders' authority for any such redemption or purchase.
The Panel has confirmed that, pursuant to Note 1 of Rule 37.1 of
the City Code, Invesco Limited would not ordinarily incur an
obligation to make a mandatory offer should its beneficial
interests in the Company increase as a result of share buy-backs
under the Engagement.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Victory Park Capital via MHP Communications
Brendan Carroll (Senior (below)
Partner and Co-Founder)
Gordon Watson (Partner)
Cormac Leech (Principal)
MHP Communications (PR Tel: +44 20 3128
Adviser) 8100
Tim Rowntree Email: vpc@mhpc.com
Mark Lunn
Kelsey Traynor
ABOUT VPC Specialty Lending Investments PLC:
VPC Specialty Lending Investments PLC invests in opportunities
within the specialty lending market primarily through online
lending platforms. The Company intends to generate an attractive
total return for shareholders consisting of distributable income
and capital growth via investments in a diverse portfolio of
various platforms, asset classes, geographies (primarily U.S.,
U.K., Australia and Europe) and credit bands.
Since 2010, the Company's investment manager, Victory Park
Capital, has been actively involved in the specialty lending
marketplace and has made more than $4.5 billion of investments and
commitments across a number of financial technology platforms,
multiple geographies (U.S., U.K., Australia and Europe), products
(consumer and business) and structures (whole loans and senior
credit facilities).
Further information on VPC Specialty Lending Investments PLC is
available at www.vpcspecialtylending.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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