AEFS Alcentra European Floating Rate Income Fund Limited

TIDMAEFS

RNS Number : 9019F

Alcentra European Fltng Rate Inc Fd

12 March 2020

12 March 2020

Alcentra European Floating Rate Income Fund Limited

Company update

The Board of Directors of Alcentra European Floating Rate Income Fund Limited (the "Company") announces that, following the March 2020 Tender, it has conducted a comprehensive review of the outlook for the Company. This review, conducted in consultation with the Company's Investment Manager and Corporate Broker, has been undertaken in tandem with extensive shareholder consultation.

Following this review, the Board has determined that the Company should be put into managed wind-down, with cash returned to shareholders in a timely and efficient manner.

Over the course of the last decade, as expectations of rising rates (a key requirement for dividend growth) gave way to expectations that rates would stay low for longer, the demand for floating rate listed funds diminished. As a result, the Company ceased trading at a premium to NAV rating and has been returning capital to Shareholders for two years. The Board does not expect to see a reversal in this trend in the near future.

The Board is cognisant of current market conditions with regards to the timing of realisation of assets and returns of capital to Investors. The Board and the Manager will endeavour to achieve a balance between maximising the value received from investments and making timely returns of cash to shareholders, while current market conditions persist. The Board will continue to seek the views of shareholders in this regard.

As a result of its deliberations, the Board therefore intends to publish a circular to shareholders in due course and to convene an extraordinary general meeting at which it will seek approval from shareholders to amend the Company's investment objective and policy and approve any related matters necessary to facilitate a managed wind-down.

In light of these proposals, the Board proposes to complete the March 2020 Tender but suspend future Quarterly Tender Offers. The Company will continue to pay dividends to shareholders as appropriate.

The Investment Manager is supportive of the Board on this course of action and has confirmed that it will waive any entitlement to a fee arising on its termination as investment manager to the Company.

Capitalised terms used but not defined herein have the meaning given to them as set out in the circular dated 28 August 2019.

This announcement is released by Alcentra European Floating Rate Income Fund Limited and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Enquiries:

BNP Paribas Securities Services S.C.A., Guernsey Branch

   Jasper Cross                +44 (0)1481 750 850 

J.P. Morgan Cazenove

   William Simmonds         +44 (0)20 7742 4000 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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