Timing of retirement of 2013 ZDP Shares

RNS Number : 3614C

J.P. Morgan Private Equity Ltd

15 April 2013

 

J.P. Morgan Private Equity Limited

PO Box 60, Carinthia House, 9-12 The Grange, St Peter Port, Guernsey GY1 4BF

JPEL ANNOUNCES TIMING OF RETIREMENT OF
2013 ZERO DIVIDEND PREFERENCE SHARES

*              *              *

GUERNSEY, 15 APRIL 2013

Further to J.P. Morgan Private Equity Limited's ("JPEL" or the "Company") announcement of its Strategic Initiatives on 7 November 2012, the Company hereby announces the timing of retirement of its 2013 Zero Dividend Preference Shares ("2013 ZDP Shares") which are set to reach their Final Capital Entitlement Date on 29 April 2013.

Final Capital Entitlement Date (Record Date)	Monday 29 April 2013
Final Capital Entitlement	73 pence per 2013 ZDP Share
CREST accounts credited with funds	Friday 3 May 2013
Cheques posted	Friday 3 May 2013

It is expected that the listing of the 2013 ZDP Shares (Ticker: JPEZ) on the Official List of the London Stock Exchange will be cancelled at 8.00 a.m. on Monday 29 April 2013 and the 2013 ZDP Shares will be compulsorily redeemed and cancelled on this date.

In line with the Company's previous announcements, JPEL has entered into a binding agreement to sell a small interest in a 2006 Vintage Year buyout fund at an aggregate discount of 13% to prevailing NAV.  The sale will generate cash proceeds of approximately $3.3 million, will have minimal impact on US$ Equity NAV per Share while releasing JPEL from approximately $1.7 million in unfunded commitments.  Proceeds will be used to reduce the Company's leverage.  

The Company will continue to execute its plans as outlined in its Strategic Initiatives announcement in November 2012.  As of 29 April 2013, JPEL will have:

·      Returned $20 million to US$ Equity Shareholders by repurchasing 31,372,548 US$ Equity Shares at a 42.6% discount to the prevailing NAV;

·      Sold approximately $35.8 million of assets, generating $30.4 million of immediate cash proceeds, representing a 15% discount to NAV; and

·      Retired approximately $69.2 million in zero dividend preference shares (representing approximately 40% of JPEL's 3 classes of zero dividend preference shares as at 29 April 2013)

The Final Capital Entitlement of the 2013 ZDP Shares will be paid using a combination of cash previously on hand, proceeds from asset sales and utilisation under the Company's substantially lower-cost credit facility.  To date, the initiatives have resulted in a net increase in NAV per share of $0.03 and a 27% annualized reduction in interest expense.

The Company will continue to attempt to capitalise on the disconnect between its US$ Equity Share price and the value of its underlying assets, while simultaneously reducing outstanding leverage and its cost of capital.  The Company is exploring the sale of several other non-core, pre-credit crisis assets in the secondary market.  JPEL anticipates making further announcements regarding any potential sales in due course.

*             *                   *

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, JPEZ, 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."

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]

 

END

 

 

MSCBBGDSCDBBGXU