ICP.L Regulatory News (ICP)

2 Jul 2009 07:00

Interim Management Statement

for the three months to 30 JUNE 2009

ICG RELEASES ITS Interim Management Statement for the three months to 30 JUNE 2009 AND ANNOUNCES A RIGHTS ISSUE TO RAISE NET PROCEEDS OF £351 MILLION TO CAPITALISE ON INVESTMENT OPPORTUNITIES

Monitoring and managing our portfolio

The performance of Intermediate Capital Group PLC's ("ICG" or "the Company") portfolio continues to be broadly resilient, reflecting its defensive bias, with no material change since we reported our full year results on 2 June 2009. The next Quarterly Performance Review (QPR) scheduled for later in July is expected to show a decrease in the number of portfolio companies performing ahead of last year compared to the 71% reported in our March QPR as the economic environment remains difficult. Nevertheless, we do not expect the number of concerning assets to increase materially.

Our top 20 assets, which account for approximately 45% of our portfolio, continue to perform well with only three assets underperforming against both last year and budget. The resilience of our portfolio is also reflected in the strong performance of our 10 largest equity investments, which account for approximately 45% of our equity portfolio, with only one asset underperforming against both last year and budget. 

Our default rate in the first quarter was 1.2% with two assets having defaulted. In addition, we restructured one asset during this quarter which represents 1.4% of the portfolio. This is in line with our expectations when provisions for the full financial year ending 31 March 2009 were agreed, and therefore we are comfortable with the carrying value of these assets.  

We remain focussed on managing our portfolio and maximising recoveries on a limited number of weak assets. 

Maintaining a liquid balance sheet and investing in secondary loans

At 30 June 2009 our undrawn debt facilities amounted to £324 million and our balance sheet remained liquid with only approximately £20 million of debt maturing in the remainder of the year to March 2010. Repayments remained at a very low level, with £13 million repaid in the first quarter. This compares to £14 million in the second half of the last financial year.

We continue to see attractive opportunities to buy individual leveraged loans and portfolios at discounted prices. Our ICG Recovery Fund 2008 invested approximately €167 million in such assets in the first quarter. In order to further capitalise on these opportunities we are proposing a 7 for 2 rights issue to raise net proceeds of approximately £351 million.

We have negotiated a further extension of £395 million of our existing bank facilities until June 2013, subject to the rights issue and a reduction of undrawn debt facilities by £59 million to £265 million. This is in addition to the £150 million extension on an existing debt facility announced on 2 June 2009, thereby providing a total extension of £545 million of debt until 2013. 

This will materially enhance the investment capacity of our balance sheet while repayments remain at a low level.

Raising third party funds

The ICG Recovery Fund 2008, which raised €475 million of equity and debt commitments during the financial year ended 31 March 2009, continues to receive interest from potential investors. We expect to hold a second close for this fund in the first half of the current financial year and a final close during the second half of the current financial year.

Rights issue

Today ICG also announces a fully underwritten Rights Issue to raise net proceeds of £351 million. The announcement regarding the Rights Issue is available at the Company's website at www.icgplc.com. 

Enquiries: 

Analyst / Investor enquiries:

Tom Attwood, Managing Director, ICG +44 (0) 20 7628 9898

Christophe Evain, Managing Director, ICG +44 (0) 20 7628 9898

Philip Keller, Finance Director, ICG  +44 (0) 20 7628 9898

Jean-Christophe Rey, Investor Relations, ICG  +44 (0) 20 7448 5876 

Media enquiries:

Amanda Fong, Corporate Communications, ICG +44 (0) 20 7448 4156 Charlotte Kirkham, Tim Draper, M: Communications +44 (0) 20 7153 1531

About Intermediate Capital Group PLC 

Founded in 1989 and quoted on the London Stock Exchange, Intermediate Capital Group PLC (ICG) is a leading independent investor in and manager of buyout debt. ICG has a large and experienced investment team with 58 investment executives operating from its head office in London and offices in Paris, Madrid, Stockholm, Frankfurt, Amsterdam, Hong Kong, Sydney and New York. Since its inception, ICG has invested more than £8 billion in mezzanine and equity in over 340 transactions. ICG has a £2.9 billion investment portfolio and, in addition, manages over £8 billion in mezzanine and credit funds on behalf of third parties. Further information can be found at: www.icgplc.com

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.