NB Private Equity Partners has announced that it has issued 50m new 2022 Zero Dividend Preference Shares (2022 ZDP shares), at 100p each, raising £50m. The issue was conducted by way of a rollover offer of the company’s 2017 ZDP Shares, into 2022 ZDP Shares, and an offer for subscription and the initial placing of 2022 ZDP Shares. The company says that rollover interest from NBPE’s 2017 ZDP Shareholders was high, with approximately 85% of the 2022 Share Issue being allocated to such investors. Reflecting the strong demand (the company says that the issue was significantly oversubscribed), the gross redemption yield (GRY) was set at 4.00%. This is at the low end of its range and compares against a GRY for the outgoing 2017 ZDPs of 7.30% when they were issued in late 2009. The 2022 ZDP shares have a final capital entitlement of 126.74 pence per 2022 ZDP Share on the repayment date of 30 September 2022.
The company says that the 2022 ZDP shares issue follows the refinancing of its credit facility, with a $150 million agreement put in place with JP Morgan Chase in June of this year, and that this further positions it with a strong long term capital position and capacity for new investments. The company says that dealings in the 2022 ZDP Shares will commence on or around 16 September 2016.
NB Private Equity Partners sees strong demand for ZDP rollover and placing : NBPE