AUSTIN, Texas, Oct. 13, 2021 /PRNewswire/ -- Invictus
Global Management, LLC (together with its affiliates, "Invictus"),
one of the largest shareholders of Capital Senior Living
Corporation ("CSU" or the "Company") (NYSE: CSU), today provided
the following commentary in response to recent claims by the
Company that it will be sent "down the path of insolvency" if CSU
shareholders do not support its highly dilutive financing with
Conversant Capital:
"As we have been saying for weeks,
Invictus stands ready, willing and able to provide capital to CSU
without conditions (other than customary documentation) or
diligence. That initial tranche of capital will ensure the Company
can extend its near-term maturities and execute an optimal,
long-term financing arrangement that minimizes dilution and cost to
shareholders, while at the same time providing operating
flexibility for the business.
The Company's attempt to coerce
its shareholders into voting for the exceedingly dilutive
Conversant financing package, under the threat that CSU's equity
value will otherwise be wiped out, is shameful. We have
considerable experience with distressed and near-bankrupt
companies, and, in our view, CSU is simply not in that position.
Notably, the Company has not offered the opinion of any experienced
advisor that agrees CSU is a candidate for bankruptcy, nor could
it.
A vote against the Conversant deal
is not a vote for a "path to insolvency," but is instead a vote for
an improved, less dilutive financing. As soon as the Conversant
deal is rejected, we will happily provide sufficient capital,
without delay, to allow for CSU to continue its fundamental
performance improvements. We can then proceed to put a package of
low-cost, long-term financing in place, either in the form we have
proposed or in some other mutually agreeable form. (If the Company
wishes to have more equity in its capital structure, we can
certainly provide for more equity within our framework.)
In all events, we are confident
that other CSU shareholders will enthusiastically participate in a
long-term, optimized financing solution, and we will welcome that
participation."
About Invictus Global Management
Invictus is an Austin-based
private equity fund focused on special situations and private
credit.
Investor and Media Contact:
Amit Patel
Info@invictus-gm.com
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SOURCE Invictus Global Management, LLC