The
information contained in this announcement is restricted and is not
for publication, release or distribution in the United States of
America, any member state of the European Economic Area (other than
to professional investors in Belgium, Denmark, the Republic of
Ireland, Luxembourg, the Netherlands, Norway and Sweden), Canada,
Australia, Japan or the Republic of South Africa.
The
information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 which forms part of
domestic law in the United Kingdom pursuant to The European Union
Withdrawal Act 2018, as amended by The Market Abuse (Amendment) (EU
Exit) Regulations 2019.
25 September 2024
Chrysalis Investments Limited
("Chrysalis" or the "Company")
Debt
Facility
Debt Facility
Subsequent to recent indications
that it was considering options to enhance liquidity and so enable
the Company's capital allocation policy ("CAP") to take effect at
the earliest opportunity, including potential short-term gearing,
the Company is pleased to announce that it has agreed a £70 million
debt facility with Barclays Bank plc ("Barclays"). In addition to
the committed £70 million, the facility also includes an
uncommitted accordion of £15 million.
The Company will shortly inform
Barclays of its intention to draw down the full £70 million
commitment.
The agreement has a two-year tenor,
which the Investment Adviser believes provides sufficient time for
potential further realisations to occur, while falling within the
three-year continuation period extension, which was approved by
shareholders in March 2024. A market-rate margin plus the daily
SONIA rate will be charged on borrowed amounts, with an arrangement
fee also payable on the full commitment. The facility is repayable
with no cost after one year.
The quantum of the facility is
designed to cover the "buffer" element of the CAP (the "Buffer"),
which the Board and Investment Adviser currently believe is
appropriately set at approximately £50 million. The Buffer is
designed to cover working capital and potential follow-on
investments.
When the Buffer requirement is
fulfilled by the facility, the Board will be in a position to
consider the second pillar of the CAP, namely the return of up to
£100 million to shareholders, likely through the commencement of
share buybacks. The timing of any returns of capital will be
dependent on receipt of funds from Barclays, amongst other relevant
considerations, and a further announcement on this will be made in
due course.
Given the above, both the Board and
the Investment Adviser consider the benefits of the facility will
outweigh the costs to the Company.
The maximum level of gearing in the
Company, as measured against NAV and assuming the facility is fully
drawn, is modest at approximately 8.1%, based on NAV as of 30 June
2024.
Liquidity
The Company's liquidity position as
of 23 September 2024 was £47.2m, comprising cash of £45.3 million
and a position in Wise worth £1.9 million. Once the £70 million
drawdown on the facility is received, liquidity would increase to
approximately £117.2 million, representing approximately 23% of its
market capitalisation (as of 23 September 2024).
Nick Williamson and Richard
Watts (Managing Partners of the Investment Adviser)
comment:
"As we have articulated to shareholders in recent months, we
believe the addition of a modest amount of debt will allow the
Company to accelerate returns to shareholders as realisations occur
within the portfolio. With the shares currently trading on a circa
41% discount to NAV and with a strong portfolio, we believe share
buybacks could offer a compelling way to accrete NAV per share to
the benefit of long-term shareholders.
We
continue to work to maximise the valuations of the portfolio
companies and to explore ways to realise this
value."
-ENDS-
For
further information, please contact
Media
Montfort Communications:
Charlotte McMullen / Imogen
Saunders
|
+44
(0) 7921 881 800
chrysalis@montfort.london
|
|
|
Investment Adviser
Chrysalis Investment Partners LLP:
James Simpson
|
+44
(0) 20 7871 5343
|
G10
Capital Limited (AIFM):
|
+44
(0) 20 7397 5450
|
Maria Baldwin
|
|
|
|
Panmure Liberum:
Chris Clarke / Darren
Vickers
|
+44
(0) 20 3100 2222
|
Deutsche Numis:
Nathan Brown / Matt Goss
|
+44
(0) 20 7260 1000
|
IQEQ Fund Services (Guernsey) Limited:
Aimee Gontier / Elaine
Smeja
|
+44
(0) 1481 231852
|
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be
available on the Company's website at https://www.chrysalisinvestments.co.uk
The information contained in this
announcement regarding the Company's investments has been provided
by the relevant underlying portfolio company and has not been
independently verified by the Company. The information contained
herein is unaudited.
This announcement is for information
purposes only and is not an offer to invest. All investments are
subject to risk. Past performance is no guarantee of future
returns. Prospective investors are advised to seek expert legal,
financial, tax and other professional advice before making any
investment decision. The value of investments may fluctuate.
Results achieved in the past are no guarantee of future results.
Neither the content of the Company's website, nor the content on
any website accessible from hyperlinks on its website for any other
website, is incorporated into, or forms part of, this announcement
nor, unless previously published by means of a recognised
information service, should any such content be relied upon in
reaching a decision as to whether or not to acquire, continue to
hold, or dispose of, securities in the Company.
The Company is an alternative
investment fund ("AIF") for the purposes of the AIFM Directive and
as such is required to have an investment manager who is duly
authorised to undertake the role of an alternative investment fund
manager ("AIFM"). The AIFM appointed is G10 Capital Limited (part
of the IQEQ Group).