VPC Specialty Lending has announced that, in light of the significant disparity between the Company’s share price and its Net Asset Value per share, it will commence a share buyback programme. As at the date of the announcement (22 December 2016), the Company says that its shares are trading at a 17.9% discount to net asset value reported as at 31st October 2016 (as adjusted for the dividend declared on 17 November 2016). The Board says that it is committed to an active discount management policy and has adopted a programme to buy-back the Company’s issued shares opportunistically where it believes such a purchase would be accretive to shareholder value relative to making additional investments in the portfolio and it is in the best interest of all shareholders to do so.
The board has engaged Jefferies International Limited as agent to execute share buy-backs on behalf of the Company, which starts as of 22 December 2016 and runs for six months and will be reviewed periodically. The Company says that it is committed to delivering the targeted 8.0% net dividend in the medium term which, in the Company’s opinion, should lead to a narrowing of the discount over time.
VPC Specialty Lending initiates discount programme in light of wide discount : VSL