CVC Credit Partners European changes tender terms to favour long term investors

CVC Credit Partners European Opportunities’ Euro and Sterling class net asset values per share increased by 9.29% and 9.80% respectively over the course of 2016. They continued to pay quarterly dividends at the annual rate of 5 Euro-cents / 5 pence per share and expect to continue to do so.

They point out that the fund has shrunk again this year as certain investors have taken advantage of the quarterly tender programme. They say that there has also been an increase in arbitrage in the stock, between market price and tender terms. The tender was not designed for this. Additionally, it has been the view of the Directors for some time that the quarterly tender programme has offered investors seeking exit a more attractive balance of risk and opportunity than those taking a longer term view. They are proposing (in the Annual General Meeting circular) some changes to the terms of the tender programme. In summary, the proposals would have the effect, over the next two calendar quarters, of requiring shareholders to hold their shares for approximately six months before they are able to tender them. Alongside these changes, the circular has also been amended so as to seek to impose a permanent levy of 1% of the IPO placing price per share in respect of all future tenders.

CCPG / CCPE : CVC Credit Partners European changes tender terms to favour long term investors