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The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, the Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this document. The information contained herein may only be released, published or distributed in the United Kingdom, Jersey, the Bailiwick of Guernsey and the Isle of Man in accordance with the applicable regulatory requirements.
22 June 2016
BURFORD CAPITAL PLC
PROPOSED REPURCHASE AND CANCELLATION OF LISTING OF PREFERENCE SHARES OF BC CAPITAL LIMITED ON THE CHANNEL ISLANDS SECURITIES EXCHANGE
Burford Capital PLC (the "Company") announces that the board of BC Capital Limited ("BC Capital"), a direct subsidiary of Burford Capital Limited ("Burford"), has passed a resolution on 20 June 2016 for the repurchase and cancellation of all 'A' Preference Shares (ISIN: GG00BGCZ3T42; SEDOL: BGCZ3T4) (the "Preference Shares") which are represented by the USD40,000,000 nominal amount of units (the "Units") issued by BC Capital and listed on the Official List of the Channel Islands Securities Exchange (the "Repurchase"). Furthermore, BC Capital has made an application to the Channel Islands Securities Exchange (the "CISE") for the cancellation of the listing of the Units on the CISE (the "Delisting").
Background to and Reasons for the Repurchase and Delisting
In 2013, when Burford was not yet ready to access the debt markets, Burford issued these contingent Preference Shares to provide back-up liquidity in the event of a funding shortfall. The Preference Shares act essentially like a bank line of credit: Burford is able to call capital from holders if needed, and pays a stand-by fee for the commitment to provide such capital. Given Burford's growth and ability to access other forms of capital, it no longer makes sense to pay the 3% stand-by fee for the Preference Shares. The total cost of redeeming the Preference Shares to Burford is $0.11 in aggregate.
Repurchase Process
BC Capital has today issued to each holder of Preference Shares a repurchase notice which included individual details, the total number of Preference Shares in issue as at today's date, the repurchase price for the Preference Shares and the US Dollar amount representing the repurchase price payable in respect of each Unit.
Additionally, each holder of Preference Shares has been requested to sign and return a repurchase agreement and share transfer form. The payment of the applicable repurchase price to a holder of Preference Shares will be made on or about 1 July 2016.
Upon cancellation of the Preference Shares, the Units will be delisted.
For further information, please contact:
Macquarie Capital (Europe) Limited - NOMAD and Joint Broker | +44 (0)20 3037 2000 |
Ken Fleming | |
Nicholas Harland | |
RBC Capital Markets - Joint Broker | +44 (0)20 7653 4000 |
Oliver Hearsey | |
Haitong Securities (UK) Limited - Joint Broker | +44 (0)20 7456 9191 |
John Riddell | |
Harry Stockdale | |
Neustria Partners - Financial Communications for Burford Capital | +44 (0)20 3021 2580 |
Robert Bailhache | |
robert.bailhache@neustriapartners.com |
About Burford Capital PLC
Burford Capital PLC is a special purpose financing vehicle created to issue Burford's 2014 retail bonds and an indirect wholly-owned subsidiary of Burford. Burford Capital PLC is also the issuer of Burford's 2016 retail bonds.
About Burford
Burford is a leading global finance firm focused on law. Burford's businesses include litigation finance, insurance and risk transfer, law firm lending, corporate intelligence and judgment enforcement, and a wide range of investment activities. Burford's equity and debt securities are publicly traded on the London Stock Exchange. Burford works with lawyers and clients around the world from its principal offices in New York and London.
For more information about Burford, visit www.burfordcapital.com