ICG-Longbow UK Senior Secured UK Property Debt Investments (ICG-Longbow) has announced proposals proposals for a change in investment objective and policy, a placing programme for 40m shares and the continuation vote. The company says that, over the coming 24 months, the majority of its current loans become due for repayment and, given the material changes in the market dynamics affecting the financial market for the UK property sector since 2013, it says it will not be possible for the relevant proceeds to be reinvested in accordance with both the current investment objective and policy. However, ICG-Longbow’s board says that it believes that attractive risk adjusted investment returns remain available in the UK real estate debt market and, following a shareholder consultation programme, it has received positive feedback from a wide range of Shareholders, the majority of whom have indicated that they would welcome a more widely drafted and flexible investment policy while remaining true to the prudent philosophy of the current objective and policy.
The Board says that it therefore believes there is a strong appetite for the Company to continue in existence and is proposing a revised investment objective and investment policy which will enable the Company to reinvest the proceeds into new loans in order to take advantage of the continuing attractive opportunities in senior UK property lending. It says that the proposed revised investment policy also permits exposure to some of the highly successful private funds that the Investment Adviser and the direct and indirect subsidiary and parent undertakings of the Investment Adviser (its Associates) manage in the UK real estate lending sector, without incurring any second layer of fees.
The Board says that it will shortly be publishing a Circular expected to be dated 11 January 2017 which presents a number of proposals for a Revised Investment Policy, a Continuation Vote , a Follow- On Continuation Resolution and adoption of the Proposed Articles, and a placing programme.
The Board says that it believes that the Revised Investment Policy will enable the Company to maintain its current dividend policy for the foreseeable future, subject to the five-yearly continuation votes proposed, together with the prospect of some continued modest capital uplift over time and also believes that it will grant sufficient flexibility to enable the portfolio to continue to be managed prudently over the long term. It also says that it believes that there is also the opportunity to grow the size of the Company from its current value of approximately £112 million and expect to do this progressively as investment opportunities present themselves. Accordingly, the Proposals also seek authority for the placing of up to 40m new Ordinary Shares which may be issued over a twelve month period to fund investment opportunities as they arise. In addition, through adoption of the Proposed Articles, the Proposals also seek to renew for a further five year period the Directors’ general authority to allot and issue shares under Article 4.4 which is otherwise due to expire on 29 November 2017. The Board believes that growing the Company is in the best interests of all Shareholders as, in their view, it will permit greater diversification, will spread the fixed costs of the Company more widely and it should increase the secondary market liquidity in the Ordinary Shares.
ICG-Longbow proposes changes to investment policy, a placing programme for 40m shares and five-yearly continuation votes : LBOW