ICP.L Regulatory News (ICP)

23 Nov 2007 07:01

Intermediate Capital Group PLC23 November 2007 Embargoed until 7.00am onFriday, 23rd November ICG PROFITS RISE 33%: PROSPECTS IMPROVED FOLLOWING CREDIT CRISIS IFRS Financial highlights for the six months ended 30 September 2007: 6 months to 6 months to Increase 30 Sept 07 30 Sept 06 Core Income* £65.3m £52.5m 24%Gains on investments £97.1m £93.3m 4%Pre-tax profits £142.0m £106.9m 33%Earnings per share 132.6p 99.5p 33%Interim dividend 19.5p 16.5p 18%Net Interest Income + £71.5m £57.4m 25%Fee Income £30.3m £16.5m 84%Gross provisions £19.9m £18.7m 6% + Excludes net gain on derivatives held for hedging purposes of £9.1m (2006: netloss of £3.0m). * Core income consists of net interest income and fund management fees, lessrelated expenses Operational highlights: • Loan and investment book at £1,776m, up 1% compared to 31 March 2007, driven by strong growth in Asia Pacific • High quality and robust portfolio, performing well • Third party assets under management up 5% compared to 31 March 2007 at £6,122m, with 73% invested (69% at 31 March 2007) • Mezzanine and CDO funds performing well, new CDO fund priced Commenting on the results, John Manser, Chairman of ICG said: "I am pleased to report another strong performance by ICG in the six months to30 September 2007, with core income up 24% and pre-tax profit up 33%. Thisperiod saw significant change in the credit markets in which we operate. Thesechanges have generated considerable opportunities for mezzanine providers withstrong credit skills, a long term approach to investing and permanent capital.We feel that we are well positioned to take advantage of these opportunities andwe believe that our growth prospects have materially improved as a result." An interview with Tom Attwood, Managing Director, and Philip Keller, FinanceDirector, Intermediate Capital Group PLC, in video, audio and text format isavailable at www.icgplc.com and www.cantos.com Enquiries: Tom Attwood, Managing Director, Intermediate Capital Group PLC (020) 7628 9898Philip Keller, Finance Director, Intermediate Capital Group PLC (020) 7628 9898Jean-Christophe Rey, Investor Relations, Intermediate Capital Group PLC (020) 7448 5876Helen Barnes, Brunswick Group Limited (020) 7404 5959 Chairman's statement Unusually, I am going to wait until later in this statement before discussingthese excellent results. First I want to talk about the unprecedented changes inthe credit markets in which we operate and the private equity markets which weserve. The credit bubble which we described in our results statement in June has burst.Many European institutional investors in the debt markets, mostly CDO managersand credit hedge funds, whose demand had been fuelling the market for loans andmezzanine, are no longer in a position to raise new funds. Consequently, theworld in which covenant lite, and indeed due diligence lite, had become thenorm, has now changed, and is unlikely to re-emerge in the foreseeable future. This is an exciting opportunity for ICG in both our mezzanine and our CDObusinesses. On the CDO side, we are pleased with the performance of our fundsand we are delighted to report that we priced a new fund in mid-November. Thisis a considerable achievement by our CDO team in this market and confirms thestrength of our brand. On the mezzanine side, we start with a high qualityportfolio which is performing well. Our access to permanent capital togetherwith significant capacity in our funds means that we are well positioned both tosupport our clients in the private equity community and to take advantage ofopportunities in the secondary market. Before July, banks and investment banks had been arranging and underwritingincreasing amounts of debt for onward distribution to the institutionalinvestors with, we thought, poor structures and no margin for safety. Thesebanks, have found themselves left with many hundreds of millions of dollars andeuros worth of risky debt. This, added to the warehouses they were building forCDO investors and the Structured Investment Vehicles (SIV), which they have nowhad to absorb on balance sheet or finance, has used up a massive amount of bankcapacity and will limit activity in LBO markets in both Europe and NorthAmerica. The Asia Pacific region was largely isolated from the excesses ofcredit markets. In Asia Pacific, there are very few institutional investors insub-investment grade credit and the local banks, which are mostly very liquid,have therefore only arranged loans which they are prepared to keep.Consequently, loans are satisfactorily structured with old fashioned covenants. The dramatic reversal in debt markets is, in our view, only beginning to unfold.We are expecting all credit markets to remain volatile for some time to come,but it is already clear in the mid-market that structures are becoming much more"lender friendly". We think we are entering a phase in the debt cycle that willprovide enormous opportunities to lenders with a long term approach, in bothprimary and secondary markets for debt. These considerable opportunitiescombined with a lower level of early repayments, will lead to further growth forICG. Our strategy is to employ and motivate high quality people and, in so doing, todouble in size every five years. This remains our objective and we believe thatthe changes in the credit markets have materially improved our prospects ofachieving this goal over the next five years. Strong Results I am particularly pleased to report another strong performance by ICG in the 6months to 30 September 2007. Core income was up 24%, at £65.3m, as a result of continued growth in netinterest income and strong growth in our Fund Management business. Net interestincome (excluding the £9.1m positive effect of fair valuing derivatives, whichare held for the purpose of hedging only) was up 25% to £71.5m. This was drivenby the average loan book being 13% higher than in the first half of last year.Fee income rose 84% to £30.3m on the back of higher assets under management anda £5.6m carried interest from ICG European Fund 2000. Excluding the performancerelated bonus schemes, operating costs increased by 56% as we continued toinvest in our global network and corporate infrastructure to drive futuregrowth. At 30 September 2007 headcount was 135 compared to 89 at 30 September2006. Gains on investments at £97.1m were up 4% on the very high level achievedin the first half of last year. Profit before tax was up 33% at £142m. Earningsper share for the 6 months to 30 September 2007 were 132.6p, up 33%. Increase in Dividend Based on the strong performance in the first half and our outlook for the secondhalf, the Board has declared an interim dividend of 19.5p, up 18% over lastyear's interim dividend. The dividend will be paid on 28 December 2007 toshareholders on the register at 7 December 2007. Strong Capital Position ICG further strengthened its balance sheet in the first half of the year. At 30September 2007, shareholders' funds were £670m, up £68m compared to the end ofMarch 2007. Our net debt to shareholders' funds ratio at the end of Septemberwas 161%. Taking account of the Group's equity investments and assuming thatthese are funded exclusively from shareholders' funds, the Group's gearing is324%. At these levels we have a satisfactory amount of available funding. Following the review of our debt arrangements which started in the year to March2007, we completed our on-balance sheet securitisation, Intermediate Finance IIPLC in early July, at €650m, taking advantage of the then favourable marketconditions. Our borrowing capacity at 30 September 2007 was £677m. Since then wehave added extra borrowing capacity to our balance sheet to enable us to seizefurther the investment opportunities which we expect to see following thissummer's credit crisis. We intend to continue to review our debt arrangements. Investment Portfolio Our Loan and Investment portfolio increased to £1,776m in the six months to 30September 2007 despite a very high level of repayments. Over the six monthperiod, we arranged or provided £898m in 21 transactions, 22% above the levelachieved in the first half of last year. Of this £898m, £468m was retained onour balance sheet, £308m was allocated to our funds and the balance wassyndicated or held for syndication to third parties. Some £248m of the totalamount arranged took the form of equity, of which £131m was retained on ourbalance sheet. Our French team saw the highest level of activity with seven deals completed.Our Nordic team closed four deals, and our UK team, three. Two transactions werecompleted in Spain, and one in Germany. Our Asia Pacific team closed threetransactions, accounting for 19% of the new lending for the period. We are alsodelighted to report our first deal in North America. This demonstrates once morethe benefits of an expanded geographic footprint and the strength of our localpresence in our chosen markets. Two of the deals completed over the period wereminority partner transactions, an area where we are building our capabilities. The strong European LBO market until mid July also led to very high levels ofrepayments, as equity sponsors took advantage of market conditions to exit theirinvestments or refinance them. Repayments for the six month period amounted to£458m. In our core market of Europe we were repaid £184m more than we invested(on balance sheet). This reflects the concerns we had about the poor returnsavailable during the spring and our greater selectivity as a result. We havehowever seen a considerable slow-down in early repayments since the end of theperiod. Our portfolio companies continued to perform well. Gross provisions, at £19.9mwere at a similar level to the first half of last year (£18.7m). However, writebacks on provisions previously charged through the P&L led to significantlylower net provisions, at £9.3m, for the six month period to 30 September 2007compared to £17.7m in the equivalent period of last year. The Mezzanine Market In Europe, there has been limited activity in the primary leveraged buyoutmarket since July. The large deals, which had become a feature of the market inthe past two years, vanished entirely as the appetite for such deals evaporated.The underwriting banks and investment banks at that time all but stoppedoffering large amounts of senior debt, freezing activity in big deals. In ourcore mid-market segments, we continued to see primary deals after the summer butthe market was significantly less active than in the first three months asequity sponsors and mezzanine capital providers adjusted their expectations tothe new market environment. Since the end of September, while the volume ofprimary deals remains very low, we have noticed renewed interest for mezzaninefinance from private equity sponsors who are working on new transactions. In North America, mid-market deals constitute the bulk of the mezzanine market,with larger transactions relying more on high yield bond issuance. Marketconditions in the North American mid-market are broadly similar to those inEurope with lower transactions volumes since the credit crunch but encouragingsigns that activity may be picking up. Asia Pacific has by and large been immune to the credit crunch that has affectedthe rest of the world and there continues to be an active LBO market, inparticular in Australia. Leverage in Asia Pacific never reached the dizzyheights which Europe and North America saw in the first part of 2007 and theregion continued to offer attractive opportunities for mezzanine providers. Withour track record and network of offices in the region, ICG is well positioned totake advantage of the growing Asia Pacific mezzanine market. Investment Strategy We have always focussed on maintaining our investment discipline. We wereparticularly cautious of the large commodity deals that continued to come to themarket between March and July, where price and structure did not, in our view,reflect the level of risk involved. As we indicated with our full year results,we were comfortable with not growing our investment portfolio as we were notwilling to chase deals with unattractive risk/reward profiles. However, ourfocus on the mid-market, our strong relationships with private equity sponsorsas well as our extensive network enabled us to continue to identify high qualityinvestment opportunities. We seek companies with strong and sustainable businessmodels, great management teams and predictable cash flows. At this point in the cycle we are, more than ever, cautious about cyclicalindustries. Whilst the impact of the credit crunch has been limited to liquidityissues so far, we cannot rule out a potential contagion to the economy. We, andthe wider financial community, have benefitted from a benign default environmentbut we expect to see higher default rates across the market going forward. Thismay take some time to emerge in the light of the "borrower friendly" structuresand covenant packages that had become normal. But emerge it will, resulting fromthe stretched financial structures increasingly offered by the banks, over thelast two years, with little or no margin for safety. Historically ICG has performed best in times of market turbulence thanks to itsstrong credit culture. With 112 companies in our portfolio across 22 sectors, 18countries and 4 continents, as well as 61 private equity counterparties we havea well diversified portfolio. Fund Management Our Fund Management business continued to grow strongly in the six months to 30September 2007. Fee income was up 84% compared to the first half of last year asa result of the new funds raised since the end of September 2006 and due to the£5.6m of carried interest from ICG European Fund 2000. In our mezzanine fund management business, fee income was up 179% to £17m(including the £5.6m carried interest from ICG European Fund 2000). Ourmezzanine funds continued to perform well. The ICG European Fund 2006 invested afurther €356m in the six months to 30 September 2007, bringing the totalinvestments to €476m since inception, of which €13m was repaid during theperiod. The fund has equity commitments of €1.25bn and debt arrangements andcommitments of €0.9bn. Our previous European funds (ICG Mezzanine Fund 2003,2000 and 1998) are fully invested and are returning cash to investors asinvestments are realised. Our first Asia Pacific fund, the Intermediate CapitalAsia Pacific Mezzanine Fund 2005, is performing strongly and was 63% invested at30 September 2007 having deployed an additional US $127m in the six monthperiod. Leveraging this success, we are currently in the process of raising alarger successor Asia Pacific mezzanine fund. In our CDO and Institutional Mandate fund management business, fee income was up62%, on the back of strong growth in assets under management since the end ofSeptember 2006. At 30 September 2007 the team managed some €4.9bn in eight CDOfunds, one Credit Opportunity fund and three institutional client mandates funds(€3.4bn at 30 September 2006). Market conditions for our CDO and Institutional Mandate fund management businessalso underwent a dramatic change in July. In the three months to July, the mainchallenge consisted in finding attractive assets despite the strong flow oftransactions, as unprecedented demand for assets was pushing prices tounattractive levels and encouraging increasingly leveraged structures. In suchmarket conditions the ability to leverage the ICG network to source assets was adistinct competitive advantage. Post the July credit crisis, competition forassets was of course much lower. In the secondary market, prices fell sharply asa result of forced selling by hedge funds and the unwinding of CLO warehousesinto a weak market. These discounted prices, driven by liquidity issues ratherthan concerns with credit quality, have created opportunities for us to deployour investors' funds attractively. The value of our Eurocredit Opportunity Fund, which is our only in-house fundmarked-to-market, has been affected by the weak prices in the secondary market.However it continues to operate with a satisfactory level of covenant headroomand we remain confident that we will deliver value through this fund. Ourcashflow CDO funds have benefitted from the buying opportunities in thesecondary markets and performed well. We are also delighted to report thatsince the end of the period we raised a new CDO fund, Eurocredit VIII. At €636mEurocredit VIII was upsized from our original target of €500m showing thestrength and depth of our fund management team and the ICG brand name. Business Development Geographic expansion has been one of the key drivers of ICG's growth and we arecommitted to further strengthening our existing teams as well as expanding ournetwork to markets where we see opportunities to deploy our expertise inmezzanine capital. In the first half of 2007, ICG opened an office in New York.The Board had been convinced for some time that the North American marketoffered opportunities for ICG and was waiting for the right team and the righttime to enter this market. Our five-strong North American team has a wealth ofexperience in providing financing solutions to buyout sponsors and managementteams. They are ideally placed to develop our business in the region with athorough understanding of ICG, its credit culture and people. The team alreadyclosed one transaction in the six months to 30 September 2007. In 2008 we willbe opening an office in Amsterdam and we will continue to look at opportunitiesto strengthen our geographic reach. We also believe that minority partner (development capital investing) presentsgood opportunities for ICG and we have therefore set up a dedicated team. As theEuropean LBO market matures we expect that there will be a growing number ofcompanies seeking a minority partner to support their business plans. ICG has aproven track record of working closely with high quality management teams in aminority position, and has the permanent capital base, credit culture and longterm investment horizon to add value to such companies. During the six months to30 September 2007, we co-invested as a minority partner in the management ledbuyouts of Eismann, one of Europe's leaders in the home delivery market offrozen food products, and Marken, a leading provider of logistics to thebiopharmaceutical industry. Principal Risk and Uncertainties for the Second Half The principal risk is that the credit crisis impacts adversely the economy bothin the US and then Europe, although we are not seeing signs of this at themoment. We are investing on the assumption that the economy will be adverselyaffected and accordingly we will be seeking to support only the strongestborrowers with good defensive characteristics. Our portfolio meanwhile remainsstrong. Our disciplined investment process and our long term approach havealways resulted in our performing at our best in just such turbulent markets.The Group has no direct investment in mortgages and subprime debt. Outlook In the second half we expect core income to continue to grow but anticipate thatdue to a lower level of realisations capital gains will be significantly belowlast year's second half levels. We believe that the changes in market conditions following this summer's creditcrisis have significantly improved our outlook. In Europe and the US, we areseeing evidence that transactions structured after the credit crisis areoffering a better balance of risk and reward with structures close to those weused to see some years ago. We expect the LBO market, which remains the maindriver of the mezzanine market, to be fairly subdued in the near future untilvendors adjust their expectations to the new conditions and senior debt lendersre-open for business. After this period of adjustment, we expect the LBO marketto pick up again on the back of the substantial funds raised by private equitysponsors in the past two years and as yet unspent. In Asia Pacific we expect thestrong pipeline of deals seen in the past year to continue. In the meantime we also expect to see further opportunities in the secondarymarket in assets held by banks that they have not been able to syndicate. Ourcredit discipline and knowledge of the market puts us in a good position toidentify those assets that offer the best balance of risk and returns. This is a time of considerable opportunities for mezzanine providers with strongcredit skills, a long term approach to investing and permanent capital. We feelthat we are well positioned to take advantage of all these opportunities throughour strong balance sheet and through our fast growing and highly regarded fundmanagement business. At the same time, we expect that we will be experiencingmuch lower early repayments and we believe that this much improved environmentwill result in the growth of our portfolio. INTERMEDIATE CAPITAL GROUP PLC CONSOLIDATED INCOME STATEMENT for the six months ended 30 September 2007 Six months ended Six months Year ended 30 September ended 31 March 2007 2007 30 September 2006 (unaudited) (unaudited) (audited) £m £m £m Interest and dividend income 106.0 86.9 196.8Gains on investments 97.1 93.3 197.0Fee and other operating income 30.3 16.5 33.3 ------------- ---------- ----------- 233.4 196.7 427.1 Interest payable and other relatedfinancing costs (25.4) (32.5) (66.6)Provisions for impairment ofassets (9.3) (17.7) (34.8)Administrative expenses (56.7) (39.6) (101.7) ------------- ---------- -----------Profit before tax 142.0 106.9 224.0Tax expense (48.7) (37.3) (80.6) ------------- ---------- -----------Profit for the period attributableto equity shareholders 93.3 69.6 143.4 ============= ========== =========== Earnings per share 132.6p 99.5p 204.6pDiluted earnings per share 131.0p 98.5p 202.3p INTERMEDIATE CAPITAL GROUP PLC ANALYSIS OF PROFIT BEFORE TAX for the six months ended 30 September 2007 Six months Six months Year ended ended ended 31 March 2007 30 September 30 September 2007 2006 (unaudited) (unaudited) (audited) £m £m £mIncomeInterest and dividend income 106.0 86.9 196.8Fee and other operating income 30.3 16.5 33.3 ------------ ---------- ---------- 136.3 103.4 230.1 Less: related expensesInterest payable and other relatedfinancing costs (25.4) (32.5) (66.6)Add back: net (gain)/losses onderivatives held for hedging purposes* (9.1) 3.0 8.2Administrative expenses - salariesand benefits (19.7) (9.6) (32.8)Operating expenses (8.4) (6.0) (14.1)Medium term incentive scheme (8.4) (5.8) (12.8) ------------ ---------- ----------Core Income 65.3 52.5 112.0 ------------ ---------- ---------- Gains on investments 97.1 93.3 197.0Medium term incentive scheme (20.2) (18.2) (42.0) ------------ ---------- ----------Net gains on investments 76.9 75.1 155.0 ------------ ---------- ---------- Provisions against loans andinvestments (9.3) (17.7) (34.8) ------------ ---------- ---------- Net gain/(loss) on derivatives heldfor hedging purposes* 9.1 (3.0) (8.2) ------------ ---------- ----------Profit on ordinary activitiesbefore taxation 142.0 106.9 224.0 ============ ========== ========== The costs of the Medium Term Incentive Scheme included under core income relateto rolled-up interest. * Net gain/(loss) relating to movements in the fair value of derivatives used toeconomically hedge certain liabilities of the Group, excluding any interestaccruals and spot F/X-translation movements on these derivatives, are notconsidered part of core income. INTERMEDIATE CAPITAL GROUP PLC CONSOLIDATED BALANCE SHEET 30 September 2007 30 September 30 September 31 March 2007 2007 2006 (unaudited) (unaudited) (audited) £m £m £mNon current assets Property, plant and equipment 4.6 1.4 2.9Financial assets: loans andinvestments and warrants 1,775.7 1,631.5 1,749.9other derivatives 2.9 18.4 15.3 ----------- ---------- ---------- 1,783.2 1,651.3 1,768.1 ----------- ---------- ---------- Current assetsTrade and other receivables 26.1 17.6 13.3Financial assets: loans andinvestments 157.2 81.9 14.0Cash and cash equivalents 80.7 44.6 172.0 ----------- ---------- ---------- 264.0 144.1 199.3 ----------- ---------- ---------- ----------- ---------- ---------- Total assets 2,047.2 1,795.4 1,967.4 =========== ========== ========== Equity and reservesCalled up share capital 14.1 14.0 14.0Share premium account 177.0 175.2 175.7Capital redemption reserve 1.4 1.4 1.4Other reserves 14.1 7.8 11.0Retained earnings 463.6 337.2 399.5 ----------- ---------- ---------- Equityshareholders' funds 670.2 535.6 601.6 ----------- ---------- ---------- Non current liabilitiesFinancial liabilities 1,195.3 826.7 1,137.0Deferred tax liabilities 6.8 12.2 7.4 ----------- ---------- ---------- 1,202.1 838.9 1,144.4 ----------- ---------- ---------- Current liabilitiesTrade and other payable 99.1 61.8 112.7Financial liabilities 20.4 320.3 73.6Liabilities for current tax 55.4 38.8 35.1 ----------- ---------- ---------- 174.9 420.9 221.4 ----------- ---------- ---------- ----------- ---------- ----------Total liabilities 1,377.0 1,259.8 1,365.8 ----------- ---------- ---------- ----------- ---------- ----------Total equity and liabilities 2,047.2 1,795.4 1,967.40 =========== ========== ========== INTERMEDIATE CAPITAL GROUP PLC CONSOLIDATED CASH FLOW STATEMENT for the six months ended 30 September 2007 Six months Six months Year ended ended ended 31 March 2007 30 September 30 September 2007 2006 (unaudited) (unaudited) (audited) £m £m £m Net cash from operating activitiesInterest and fee receipts 123.0 82.2 180.2Dividends received 2.8 2.5 6.7Gain on disposals 105.3 97.3 206.5Interest payments (25.7) (22.2) (48.8)Cash payments to suppliers and employees (70.1) (44.6) (59.9)Net proceeds from (purchase)/sale of current financial assets (143.6) (13.9) 54.5Purchase of loans and investments (467.8) (428.6) (732.1)Proceeds from sale of loans and investments 458.0 241.8 435.9 ------------ --------- ----------- Cash (used in)/ generated by operations (18.1) (85.5) 43.0Taxes paid (30.2) (22.4) (74.0) ------------ --------- -----------Net cash used in operating activities (48.3) (107.9) (31.0) ------------ --------- -----------Investing activitiesPurchase of property, plant and equipment (1.7) (0.3) (2.2) ------------ --------- -----------Net cash used in investing activities (1.7) (0.3) (2.2) ------------ --------- -----------Financing activitiesDividends paid (29.2) (29.4) (40.9)(Decrease)/increase in long-term borrowings (8.4) 137.2 207.2(Decrease)/increase in bank overdrafts (5.6) (8.1) (14.7)Proceeds on issue of shares 1.9 0.7 1.2 ------------ --------- -----------Net cash (used in)/from financing activities (41.3) 100.4 152.8 ------------ --------- -----------Net (decrease)/increase in cash (91.3) (7.8) 119.6 Cash and cash equivalents at beginning of period 172.0 52.4 52.4 ------------- --------- -----------Cash and cash equivalents at end of period 80.7 44.6 172.0 ============= ========= =========== INTERMEDIATE CAPITAL GROUP PLC CONSOLIDATED STATEMENT OF RECOGNISED INCOME & EXPENSE for the six months ended 30 September 2007 Six months Six months Year ended ended ended 31 March 2007 30 September 30 September 2007 2006 (unaudited) (unaudited) (audited) £m £m £mAvailable for sale investments:Valuation gains taken to equity 53.9 16.9 56.9Transferred to profit or loss forthe period (50.4) (16.5) (53.4)Tax on items taken directly to ortransferred from equity (1.7) - (0.4) ------------- --------- -----------Net income recognised directly inequity 1.8 0.4 3.1Profit for the period 93.3 69.6 143.4 ------------- --------- -----------Total recognised income and expensefor the period attributable toshareholders 95.1 70.0 146.5 ============= ========= =========== NOTES TO THE EDITORS In the 6 months ended 30 September 2007 ICG and its mezzanine funds invested inthe following 21 companies: Europe Attendo, an existing investee company, is the leading elderly care provider inSweden. In August 2007 ICG arranged and provided a mezzanine facility of €42.5mto assist in the acquisition of MedOne. ICG also invested an additional €3m inthe equity. Dako, a Danish company, provides cancer diagnostics instruments and reagents. InJuly 2007 ICG took a participation of US$43.9m in the mezzanine facilityprovided to assist in the buyout. ICG also invested DKK25m in the equity. Ethypharm, is a French company that develops and manufactures drugs. In April2007 ICG invested €55m in the mezzanine finance provided to support the buyout.ICG also invested €9.4m in the equity. Euroloc, an existing investee company, is a Spanish company providing equipmentand machinery for hire. In the May, June and July 2007 ICG invested, in total,an additional amount of €23m to assist in three acquisitions. Feu Vert, is a French Auto Centre operator. In May 2007 ICG invested €57m in themezzanine finance provided to support the buyout. ICG also invested €6.1m in theequity. Flaktwoods, a French company, is a leading global supplier of energy efficientair solutions. In September 2007 ICG invested €40m in the mezzanine financeprovided to support the secondary buyout. ICG also invested €7m in the equity. Global Solutions, is a U.K. company providing support services for public andprivate sector organisations. In May 2007 ICG arranged a mezzanine facility of£20m to assist in the recapitalisation. Indas, is a Spanish company that manufactures incontinence products. In July2007 ICG provided mezzanine finance of €35m to assist in the buyout. ICG alsoinvested in the equity. Inspecta, a Finnish company, is a testing, inspection and certificationbusiness. In August 2007 ICG arranged and provided mezzanine facilities of €40mto assist in the secondary buyout. ICG also invested €9.5m in the equity. Parkeon, a French company, develops and manufactures parking and transitticketing systems. In June 2007 ICG invested €42m in the mezzanine financeprovided to support the secondary buyout. ICG also invested €5m in the equity. Q-MATIC, is a Swedish company that provides queue management systems. In July2007 ICG arranged mezzanine finance of SEK225m to support the buyout. ICG alsoinvested SEK30m in the equity. Retif, is a French wholesaler and retailer of display units for retailbusinesses. In September 2007 ICG invested €55m in the mezzanine financeprovided to support the quaternary buyout. Tractel, a French company, is the world leader in the manufacture of lifting andaccess related products. In June 2007 ICG took a participation of €30m in themezzanine financing provided to support the tertiary buyout. ICG also invested€5m in the equity. Via Location, is a French independent truck rental company. In April 2007 ICGinvested €35m in the mezzanine finance provided to support the secondary buyout.ICG also invested €12m in the equity. V Ships, is a U.K. company that provides shipping management services. In June2007 ICG invested US$10m in the equity provided to support the secondary buyout. Asia Pacific Franklin, a Singaporean company, provides rigging, lifting and mooring servicesto offshore and marine industries. In July 2007 ICG arranged and provided amezzanine facility of Sing$80m to assist in the buyout. ICG also investedSing$16.3m in the equity. New Zealand Yellow Pages, is the sole provider of yellow pages, white pages andlocal directories in New Zealand. In July 2007 ICG took a participation ofNZ$53.8m in the mezzanine facility provided to support the buyout. ICG alsoinvested NZ$18.3m in the equity. Taiwan Broadband, is the leading cable operator in Taiwan. In July 2007 ICGarranged finance of US$254.4m to support the recapitalisation. U.S.A. Helicon Cable, is a U.S. cable operator. In August 2007 ICG took a participationof US$9.9m in the subordinated facilities provided to assist in financingacquisitions. ICG also invested US$9m in the equity. Growth Capital Eismann, is a German company that provides home delivery of frozen foods. In May2007 ICG arranged and provided mezzanine finance of €33m and invested €45m inthe equity as a minority investment alongside management in the secondarybuyout. Marken, a U.K. company, is a global leader in specialist courier services forthe pharmaceutical industry. In July 2007 ICG arranged mezzanine and equityfacilities totalling £171.9m as a minority investment alongside management inthe secondary buyout. In the same period ICG and funds managed by ICG arranged/participated inrefinancings for the following 2 companies: Aster, (Poland) refinanced in August 2007. ICG maintained its current exposure. Caradon (U.K.), refinanced in April 2007. ICG's exposure was marginally reduced. ICG also provided additional funding of £12.6m for a further 7 existing investeecompanies. 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