ICP.L Regulatory News (ICP)

1 Jul 2008 07:19



Embargoed until 7.00am on 

Tuesday, 1st July 2008

INTERMEDIATE CAPITAL GROUP - Interim Management Statement 

for the three months to 30 JUNE 2008

After the strong performance by ICG in the twelve months to 31 March 2008, we have further grown our investment portfolio in the first quarter of the new financial year, as we continue to benefit from the improved competitive environment for mezzanine finance. Whilst the LBO market has slowed even further during this quarter, mezzanine is now firmly re-established as the cornerstone of successful transactions and terms for mezzanine lenders continue to improve.

During the first quarter, we arranged or provided £356m in six new investments, compared with £898m in the first half of last year (08H1) and £842m in the second half (08H2). ICG retained £195m on its balance sheet (08H1: £468m, 08H2: £472m) with the remainder being taken up by our mezzanine funds and/or syndicated to third parties.

At the same time, the slow down in repayments was even more marked than in the second half of last year; only £44m of our loan and investment portfolio was repaid this quarter (08H1: £458m, 08H2: £151m). Capital gains were therefore substantially below last year's level (08H1: £97m, 08H2: £38m).

This net new lending of £151m (08H1: £10m, 08H2: £321m) will result in continued growth in both our investment portfolio and net interest income.

During the first quarter we held two closings for our second Asia Pacific fund bringing third party commitments to $437.5 million. In addition we had a first close for our Minority Partners fund, with third party commitments in excess of €150m. We have also recently launched a Recovery Fund which will look to exploit the current dislocation in the debt markets. We are pleased with the response of our existing investor base as well as new investors in the difficult fund raising environment and expect to reach final closes on these three funds during the financial year. 

Meanwhile, our highly diversified portfolio continues to perform satisfactorily. As expected, a few companies, mainly in cyclical industries or in economies experiencing a slow down, are warranting closer attention following deteriorating operational performance. In order to maintain our strong track record of low default and high recovery rates, monitoring our portfolio is our key priority in this environment. When considering new investments we continue to apply our investment discipline and support only high quality companies. 

Analysts / Investors enquiries: 

Tom Attwood, Managing Director, ICG PLC (020) 7628 9898 

Philip Keller, Finance Director, ICG PLC  (020) 7628 9898

Jean-Christophe Rey, Investor Relations , ICG PLC  (020) 7448 5876

Media enquiries:

Helen Barnes/Teresa Bianchi, Brunswick Group  (020) 7404 5959 

This interim management statement has been prepared solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. The interim management statement should not be relied on by any other party or for any other purpose. 

This interim management statement may contain forward-looking statements. These statements have been made by the directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. 

These written materials are not an offer of securities for sale in the United States. Securities may not offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption there from. The issuer has not and does not intend to register any securities under the US Securities Act of 1933, as amended, and does not intend to offer any securities to the public in the United States. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in these written materials, will not be accepted.

About ICG

Founded in 1989 and quoted on the London Stock Exchange, Intermediate Capital Group PLC is a leading independent investor in Leveraged Buy-outs and third party Fund Manager. ICG has a large and experienced investment team with 63 executives operating out of ICG's head office in London and offices in Paris, Madrid, Stockholm, Frankfurt, Hong Kong, Tokyo, Sydney and New York. Since its inception, ICG has invested more than €12bn in mezzanine and equity in over 300 transactions. In addition ICG manages over €10bn in Mezzanine and CDO Funds. Further information at: www.icgplc.com .

ICG's New Investments

3 months to 30 JUNE 2008

In the 3 month period to 31 July 2008 ICG and funds managed by ICG invested in the following six companies:

Europe Biffa is a leading UK waste management company. In April 2008 ICG invested £100m in the mezzanine provided to support taking the company private. ICG also invested £25m in the equity.

Casa Reha is a German care home operator. In June 2008 ICG invested €30m in the mezzanine provided to support the secondary buyout. ICG also invested €15m in the equity.

Löwenplay, a previous investee company, is a German gaming arcade operator. In April 2008 ICG co-arranged the mezzanine facility provided to support the tertiary buyout. ICG invested €60m.

Sicurglobal is an Italian company that provides security services. In April 2008 ICG arranged and provided a mezzanine facility of €35m to support the secondary buyout. ICG also invested €13m in the equity.

Veinsur is a Spanish truck distributor that also provides maintenance, repair and after sales services. In June 2008 ICG arranged and provided mezzanine facilities of €36m to support the buyout.

North America AST is a U.S. company providing share registry services. In May 2008 ICG invested US$93m in the mezzanine facility provided to support the buyout. ICG also invested US$44m in the equity. 

Other ICG also provided additional funding of over £11m for a further six existing investee companies.