Icg-longbow Regulatory News (LBOW)

THIS ANNOUNCEMENT, INCLUDING THE APPENDIX AND THE INFORMATION IN IT, IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.

PLEASE READ THE IMPORTANT INFORMATION IN THE APPENDIX IF YOU ARE CONSIDERING PARTICIPATING IN THE PLACING.

ICG-Longbow Senior Secured UK Property Debt Investments Limited

("LBOW" or the "Company")

Further Investment

and

Proposed Placing of New Ordinary Shares

The Company is pleased to announce that it has secured its tenth investment, completion of which will take the Company's total net investments made to £104.3 million. In order to fund the Investment (as defined below) the Company announces that it intends to place 3.6 million new Ordinary Shares (the "Placing Shares") at a price of 102.0 pence per Placing Share (the "Placing Price"), representing approximately 3.4% of the Company's existing issued share capital (the "Placing").

Highlights:

· The Company has today announced its tenth investment for approximately £8.0 million.

· Conditional on completion of the Investment, the Company will have made net investments in aggregate amounting to approximately £104.3 million.

· Placing of 3.6 million Placing Shares, gross proceeds of £3.7 million.

The Investment

As part of the Company's IPO in February 2013 the Company raised net proceeds of approximately £102.5 million to make investments in senior loans to property investors secured on UK commercial property with some potential exposure to UK investment residential property.

As at 17 March 2014, the Company had announced a total of nine investments with aggregate balances of £97.2 million, representing approximately 94.9% of the net capital raised by the Company. At that time, the Company's loan portfolio produced an average coupon of approximately 7.34%per annum(1), with a projected internal rate of return if held to maturity approximately of 8.35% per annum(1).

The Company has committed to an approximate £8.0 million loan to Quay Hotels Limited (the "Investment"), the completion of which is conditional on the Company receiving the net proceeds of the Placing. The Investment is secured by a first and only mortgage over the Ramada Encore hotel in Gateshead, a modern 200 bedroom hotel which was constructed in 2012. The security property is situated in a highly visible location in Gateshead Quays, adjacent to the Baltic Centre for Contemporary Art and within a short walk of the Sage Gateshead concert venue and the Millennium footbridge which links Gateshead and Newcastle quayside areas.

Loan proceeds will be used to refinance existing debt and the Investment has a maturity date of April 2019. The Investment is fully compliant with the parameters set out in the Company's investment policy.

Following the completion of the Investment and following an expected partial prepayment of £0.9m on the LM Real Estate loan, the total amount of capital invested by the Company will be £104.3 million. The Company's loan portfolio is expected to have an average coupon of approximately 7.39 % per annum(1), with a projected internal rate of return if held to maturity approximately of 8.41% per annum(1). The average Loan to Value(2) exposure across all loans is expected to be approximately 62.2%(1), with an average Interest Coverage Ratio(3) of approximately 159%(1) .

The Investment together with the Placing will be accretive to NAV per share.

Should the Placing not complete, the Investment will not be made.

The Placing

Following the investment announced on 17 March 2014, the Company had invested approximately 94.86% of net capital raised, leaving £4.5 million available for further investment including the proceeds of the partial repayment under the LM Real Estate loan. The Board has determined that it is appropriate for the Company to raise equity capital by way of a placing of 3.6 million new Ordinary Shares to enable the Company to make the Investment.

The Company expects to raise approximately £3.7 million (gross) by way of a placing of the Placing Shares at the Placing Price. The Placing Shares, when issued, will represent approximately 3.4% of the Company's existing issued share capital. The Placing Price of 102.0 pence per share represents an approximate discount of 0.7% to the closing mid-market price of 102.75 pence per Ordinary Share on 16 April 2014, being the latest practicable date prior to the publication of this announcement. The Placing Price represents a premium of approximately 3.8% to the last estimated net asset value per share (being approximately 98.3 pence per share as at 31 October 2013).

A further announcement will be made later today once the Placing has been completed.

Investec Bank plc ("Investec") is acting as sole bookrunner in respect of the Placing.

Details of the Proposed Placing

Under the terms of the Placing, the Company intends to place 3.6 million Placing Shares, representing approximately 3.4% of the current issued ordinary share capital of the Company, with existing shareholders and new institutional investors at the Placing Price. Members of the public are not entitled to participate in the Placing.

Investec, as agent for and on behalf of the Company, has agreed to use its reasonable endeavours to procure Placees for the Placing Shares at the Placing Price.

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid in respect of such shares after the date of issue of the Placing Shares. The issue of the Placing Shares will be made on a non-pre-emptive basis.

Application will be made to the Financial Conduct Authority (the "FCA") for admission of the Placing Shares to the premium listing segment of the Official List of the UK Listing Authority (the "Official List") and to the London Stock Exchange for admission to trading on its main market for listed securities (together, "Admission"). It is expected that Admission will become effective on or around 24 April 2014 and that dealings in the Placing Shares will commence at that time.

The Placing is conditional upon, amongst other things, Admission becoming effective and the Placing Agreement between the Company and Investec becoming unconditional and not being terminated, in accordance with its terms.

The Appendix to this announcement (which forms part of the announcement) sets out the terms and conditions of the Placing and expressions used in this announcement shall have the meanings set out in the Definitions section of the Appendix.

Commenting on the Investment and Placing, Jack Perry, Chairman, said:

"I am very pleased to announce this share placing, which is accretive to NAV per share and permits the Company to make its 10th loan. Completion of this loan fully deploys the Company's available capital, increases the weighted average coupon from its loan portfolio and strengthens the Company's ability to pay a quarterly dividend of 1.5p per share from the quarter ending 30 April 2014. I am also happy to confirm that, upon completion of this final loan, the Company's Investment Objective of constructing a portfolio of good quality, defensive, senior debt investments secured by first ranking fixed charges predominantly against UK commercial property investments, providing target dividends of circa 6% pa, paid quarterly, with an underlying target portfolio IRR of 8% pa will have been achieved. 

For further information contact:

Notes:

(1) All averages calculated on a capital weighted basis.

(2) Loan to Value is an indicator of lending risk, being the ratio of the loan balance to the value of the security property, expressed as a percentage.

(3) Interest Coverage Ratio is an indicator of lending risk, being the ratio of the rental income derived from the security property to the cost of servicing the interest on the subject loan, expressed as a percentage.

APPENDIX: TERMS AND CONDITIONS OF THE PLACING

IMPORTANT INFORMATION ON THE PLACING FOR INVITED PLACEES ONLY.

THIS ANNOUNCEMENT AND THE INFORMATION IN IT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT HAS NOT BEEN EXAMINED OR APPROVED BY THE FCA OR THE LONDON STOCK EXCHANGE, NOR IS IT INTENDED THAT IT WILL BE SO EXAMINED OR APPROVED.

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS DIRECTED ONLY AT: (A) PERSONS IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA WHO ARE QUALIFIED INVESTORS AS DEFINED IN SECTION 86(7) OF FSMA ("QUALIFIED INVESTORS"), BEING PERSONS FALLING WITHIN THE MEANING OF ARTICLE 2(1)(E) OF THE PROSPECTUS DIRECTIVE; AND (B) IN THE UNITED KINGDOM, QUALIFIED INVESTORS WHO ARE PERSONS WHO: (I) HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(1) OR ARTICLE 19(5) ('INVESTMENT PROFESSIONALS') OF THE ORDER; (II) ARE PERSONS FALLING WITHIN ARTICLE 49(2)(A) TO (D) ('HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC') OF THE ORDER; OR (III) ARE PERSONS TO WHOM IT MAY OTHERWISE BE LAWFULLY COMMUNICATED (ALL SUCH PERSONS IN (A) AND (B) TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS ANNOUNCEMENT AND THE INFORMATION IN IT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT AND THE INFORMATION IN IT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS. THIS ANNOUNCEMENT DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY.

THIS ANNOUNCEMENT IS NOT AN OFFER OF SECURITIES FOR SALE INTO THE UNITED STATES. THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT AND WILL BE OFFERED ONLY IN "OFFSHORE TRANSACTIONS" AS DEFINED IN AND PURSUANT TO REGULATION S PROMULGATED UNDER THE US SECURITIES ACT. NO PUBLIC OFFERING OF SECURITIES IS BEING MADE 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 THIS ANNOUNCEMENT, WILL NOT BE ACCEPTED.

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR ISSUE, OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE FOR, PLACING SHARES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS OR MAY BE UNLAWFUL. NO PUBLIC OFFER OF SECURITIES OF THE COMPANY IS BEING MADE IN THE UNITED KINGDOM, THE UNITED STATES OR ELSEWHERE.

NO INFORMATION CONTAINED IN THIS ANNOUNCEMENT SHOULD BE TAKEN AS CONSTITUTING AN OFFER TO THE PUBLIC IN THE BAILIWICK OF GUERNSEY (THE "BAILIWICK") FOR THE PURPOSES OF THE PROSPECTUS RULES 2008 ISSUED BY THE GUERNSEY FINANCIAL SERVICES COMMISSION. THIS ANNOUNCEMENT MAY ONLY BE PROVIDED TO A RESTRICTED NUMBER OF PERSONS IN THE BAILIWICK WHO ARE EITHER: (I) PERSONS APPROPRIATELY LICENSED UNDER THE PROTECTION OF INVESTORS (BAILIWICK OF GUERNSEY) LAW, 1987 (AS AMENDED) (THE "POI LAW"); OR (II) PERSONS LICENSED UNDER THE INSURANCE BUSINESS (BAILIWICK OF GUERNSEY) LAW, 2002, THE BANKING SUPERVISION (BAILIWICK OF GUERNSEY) LAW, 1994, OR THE REGULATION OF FIDUCIARIES, ADMINISTRATION BUSINESSES AND COMPANY DIRECTORS, ETC, (BAILIWICK OF GUERNSEY) LAW, 2000.

EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO LEGAL, TAX, BUSINESS AND RELATED ASPECTS OF AN INVESTMENT IN THE PLACING SHARES. THE DISTRIBUTION OF THIS ANNOUNCEMENT, ANY PART OF IT OR ANY INFORMATION CONTAINED IN IT MAY BE RESTRICTED BY LAW IN CERTAIN JURISDICTIONS, AND ANY PERSON INTO WHOSE POSSESSION THIS ANNOUNCEMENT, ANY PART OF IT OR ANY INFORMATION CONTAINED IN IT COMES SHOULD INFORM THEMSELVES ABOUT, AND OBSERVE, SUCH RESTRICTIONS.

CERTAIN STATEMENTS IN THIS ANNOUNCEMENT ARE FORWARD-LOOKING STATEMENTS WHICH ARE BASED ON THE COMPANY'S EXPECTATIONS, INTENTIONS AND PROJECTIONS REGARDING ITS FUTURE PERFORMANCE, ANTICIPATED EVENTS OR TRENDS AND OTHER MATTERS THAT ARE NOT HISTORICAL FACTS. THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. GIVEN THESE RISKS AND UNCERTAINTIES, PROSPECTIVE INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE OF SUCH STATEMENTS AND, EXCEPT AS REQUIRED BY APPLICABLE LAW, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE PUBLICLY ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS SUBJECT TO CHANGE WITHOUT NOTICE AND NEITHER THE COMPANY NOR INVESTEC ASSUMES ANY RESPONSIBILITY OR OBLIGATION TO UPDATE PUBLICLY OR REVIEW ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.

In this Appendix, unless the context otherwise requires, "Placee" means a Relevant Person (including individuals, funds or others) who has been invited by Investec, acting on behalf of the Company, and who chooses, to participate in the Placing and by whom or on whose behalf a commitment to subscribe for Placing Shares has been given to Investec, acting on behalf of the Company.

The relevant clearances have not been, nor will they be, obtained from the securities commission of any province or territory of Canada; no prospectus has been lodged with, or registered by, the Australian Securities and Investments Commission or the Japanese Ministry of Finance; the relevant clearances have not been, and will not be, obtained from the South African Reserve Bank or any other applicable body in the Republic of South Africa in relation to the Placing Shares; and the Placing Shares have not been, nor will they be, registered under or offered in compliance with the securities laws of any state, province or territory of Australia, Canada, Japan or the Republic of South Africa. Accordingly, the Placing Shares may not (unless an exemption under the relevant securities laws is applicable) be offered, sold, resold or delivered, directly or indirectly, in or into Australia, Canada, Japan or the Republic of South Africa or any other jurisdiction outside the United Kingdom.

Persons (including, without limitation, nominees and trustees) who have a contractual or other legal obligation to forward a copy of this Announcement should seek appropriate advice before taking any action.

Details of the Placing

Investec has today entered into the Placing Agreement under which, subject to certain conditions, Investec, as agent for and on behalf of the Company, has agreed to use its reasonable endeavours to procure Placees for the Placing Shares at the Placing Price. The Placing is not being underwritten by Investec.

Investec will determine in its absolute discretion the extent of each Placee's participation in the Placing, which will not necessarily be the same for each Placee. No commission will be payable to Placees or by Placees in respect of their Placing Shares.

The Placing Shares will, when issued, be credited as fully paid, will be issued subject to the Company's articles of association and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive dividends and other distributions declared or made after the date of issue of the Placing Shares.

Each Placee will be required to pay to Investec, on the Company's behalf, the Placing Price for each Placing Share allocated to it by Investec and agreed to be acquired by it under the Placing in accordance with the terms set out in this Appendix. Each Placee's obligation to acquire and pay for Placing Shares under the Placing will be owed to Investec and the Company.

The Placing Agreement is conditional upon, amongst other things:

· Admission occurring by 8:00am on 24 April 2014 (or such later time and date as Investec and the Company may agree, not being later than 8:00am on the Long Stop Date); and

· the obligations of Investec not having been terminated pursuant to the terms of the Placing Agreement.

The Placing Agreement contains certain undertakings, warranties and indemnities given by the Company for the benefit of Investec. Subject to the terms of the Placing Agreement, Investec has absolute discretion as to whether or not to bring an action against the Company for breach of these undertakings, warranties and indemnities.

Investec may terminate the Placing Agreement in certain circumstances, details of which are set out below.

This Appendix gives details of the terms and conditions of, and the mechanics of participation in, the Placing.

Applications for listing and admission to trading

Applications will be made to the FCA for Admission.

It is expected that Admission will become effective at 8.00am on 24 April 2014 and that dealings in the Placing Shares will commence at that time.

Participation in the Placing

1. Investec is acting as sole bookrunner and as agent for the Company. Investec is authorised in the United Kingdom by the Prudential Regulation Authority ("PRA") and regulated by the FCA and the PRA, is acting exclusively for the Company and no one else in connection with the matters referred to in this Announcement and will not be responsible to anyone other than the Company for providing the protections afforded to the customers of Investec or for providing advice in relation to the matters described in this Announcement. Participation in the Placing is only available to persons who may lawfully be, and are, invited to participate in it by Investec. Investec and its affiliates are each entitled to participate in the Placing as principal.

2. The price per Placing Share is fixed at the Placing Price and is payable to Investec by all Placees in accordance with the terms of this Appendix.

3. A Placee's commitment to acquire a fixed number of Placing Shares at the Placing Price under the Placing will be agreed orally with Investec, as agent of the Company, and a contract note will be dispatched as soon as possible thereafter. That oral confirmation will constitute an irrevocable, legally binding commitment upon that person (who at that point will become a Placee) in favour of the Company and Investec to subscribe for the number of Placing Shares allocated to it at the Placing Price on the terms and conditions set out in this Appendix and in accordance with the Company's articles of association. Except with Investec's consent, such commitment will not be capable of variation or revocation after the time at which it is submitted.

4. Each Placee's allocation and commitment will be evidenced by a contract note issued to such Placee by Investec confirming: (i) the number of Placing Shares that such Placee has agreed to acquire; (ii) the aggregate amount such Placee will be required to pay for such Placing Shares; and (iii) settlement instructions to pay Investec, as agent of the Company. The terms of this Appendix will be deemed to be incorporated in that contract note.

5. Each Placee will have an immediate, separate, irrevocable and binding obligation, owed to Investec as principal, to pay it (or as it may direct) in cleared funds an amount equal to the product of the Placing Price and the number of Placing Shares such Placee has agreed to subscribe for and the Company has agreed to allot and issue to that Placee.

6. Each Placee will be deemed to have read and understood this Announcement in its entirety, to be participating in the Placing upon the terms and subject to the conditions contained in this Announcement and to be providing the representations, warranties, agreements, acknowledgements and undertakings, in each case as contained in this Announcement.

7. Irrespective of the time at which a Placee's allocation pursuant to the Placing is confirmed, settlement for all Placing Shares to be subscribed for pursuant to the Placing will be required to be made at the same time, on the basis explained below under "Registration and settlement".

8. All obligations under the Placing will be subject to fulfilment of the conditions referred to below under "Conditions of the Placing" and to the Placing not being terminated on the basis referred to below under "Termination of the Placing Agreement".

9. By participating in the Placing, each Placee will agree that its rights and obligations in respect of the Placing will terminate only in the circumstances described below and will not be capable of rescission or termination by the Placee.

10. To the fullest extent permitted by law and applicable FCA rules, neither Investec nor any of its affiliates, shall have any liability (including, to the extent permissible by law, any fiduciary duties) to Placees or to any person other than the Company in respect of the Placing. In particular, neither Investec nor any of its affiliates shall have any liability in respect of Investec's conduct of the Placing or of such alternative method of effecting the Placing as Investec and the Company may agree.

Conditions of the Placing

Investec's obligations under the Placing Agreement are conditional on, amongst other things:

(a) the warranties contained in the Placing Agreement being true, accurate and not misleading in any material respect on and as of the date of the Placing Agreement and on and as of the date of Admission as if they had been given or made on such date by reference to the facts and circumstances subsisting at such date;

(b) the Company complying with its obligations under the Placing Agreement in so far as they are required to be performed prior to Admission;

(c) the aggregate net proceeds of the Placing being not less than the Minimum Net Proceeds or such lower amount as the Company, the Investment Manager and Investec may agree;

(d) in the opinion of Investec acting in good faith, there having been no Material Adverse Change at any time prior to Admission; and

(e) Admission taking place by 8.00 a.m. on 24 April 2014 (or such later date as Investec may otherwise determine, being no later than 8.00 a.m. on the Long Stop Date).

If: (i) any condition contained in the Placing Agreement is not fulfilled or (where applicable) waived by Investec by the respective time or date specified (or such later time or date as Investec may determine); (ii) any such condition becomes incapable of being satisfied (and has not been, or is incapable of being, waived); or (iii) the Placing Agreement is terminated in accordance with its terms (in the circumstances specified below), the Placing will not proceed and the Placees' rights and obligations hereunder in relation to the Placing Shares shall cease and terminate at such time and each Placee agrees that no claim can be made by the Placee in respect thereof.

Investec may, at its discretion, waive compliance by the Company with the whole or any part of any of the Company's obligations in relation to the conditions in the Placing Agreement, save that certain conditions, including condition (e) above relating to Admission, may not be waived. Any such extension or waiver will not affect the Placees' commitments as set out in this Announcement.

None of Investec, the Company or the Investment Manager shall have any liability to any Placee (or to any other person, whether acting on behalf of a Placee or otherwise) in respect of any decision Investec may make as to whether or not to waive or to extend the time and/or the date for the satisfaction of any condition to the Placing, nor for any decision Investec may make as to the satisfaction of any condition or in respect of the Placing generally, and by participating in the Placing each Placee agrees that any such decision is within the absolute discretion of Investec.

Termination of the Placing Agreement

Investec is entitled, at any time prior to Admission, to terminate the Placing Agreement in the event that, amongst other things:

(a) Investec becomes aware acting in good faith there has been a breach of, or there has taken place or arisen an event rendering untrue, inaccurate or misleading in a material respect, any of the warranties under the Placing Agreement and/or a material breach of the undertaking that the Company has given to Investec in the Placing Agreement not to do or omit to do anything which could or might reasonably be expected to cause any warranty given by it to become untrue, inaccurate or misleading at any time before Admission (by reference to the facts and circumstances existing at that time); or

(b) Investec becomes aware acting in good faith that any statement contained in: (i) this Announcement; (ii) the marketing presentation prepared by the Company and issued to potential Placees' by Investec (as agent on behalf of the Company) in connection with the Placing; or (iii) the announcement announcing Admission (each a "Placing Document"), is or has become untrue, incorrect or misleading in any material respect, or any matter has arisen which would, if the relevant Placing Document were issued at that time, constitute a material omission from that Placing Document; or

(c) there has occurred any material adverse change in national or international political, financial or economic conditions, in each case as would in the reasonable opinion of Investec acting in good faith be likely to prejudice the results of the Placing or make it impracticable or inadvisable to proceed with the Placing; or

(d) trading in any securities of the Company has been suspended or materially limited by London Stock Exchange or trading generally on the London Stock Exchange has been suspended or materially limited or maximum ranges for prices of securities have been required by London Stock Exchange or by such system or by order of any governmental authority, or a material disruption has occurred in commercial banking or securities settlement or clearance services, in each case as would in the reasonable opinion of Investec acting in good faith be likely to prejudice the results of the Placing or make it impracticable or inadvisable to proceed with the Placing.

Upon such termination, the parties to the Placing Agreement shall be released and discharged from their respective obligations under or pursuant to the Placing Agreement (except for any liability arising before or in relation to such termination), subject to certain exceptions.

By participating in the Placing, Placees agree that the exercise by Investec of any right of termination or other discretion under and in accordance with the Placing Agreement shall be within the absolute discretion of Investec and that it need not make any reference to Placees and that it shall have no liability to Placees whatsoever in connection with any such exercise or failure so to exercise.

No prospectus

No offering document or prospectus has been or will be submitted to be approved by the FCA in relation to the Placing or the Placing Shares and Placees' commitments will be made solely on the basis of the information contained in this Announcement and the Exchange Information.

Each Placee, by accepting a participation in the Placing, agrees that the content of this Announcement is exclusively the responsibility of the Company and confirms that it has neither received nor relied on any other information (other than the Exchange Information), representation, warranty or statement made by or on behalf of the Company, the Investment Manager or Investec or any other person and none of Investec, the Company, the Investment Manager nor any other person will be liable for any Placee's decision to participate in the Placing based on any other information, representation, warranty or statement which the Placees may have obtained or received. Each Placee acknowledges and agrees that it has relied on its own investigation of the business, financial or other position of the Company in accepting a participation in the Placing. Nothing in this paragraph shall exclude the liability of any person for fraudulent misrepresentation.

Registration and settlement

Settlement of transactions in the Placing Shares (ISIN: GG00B8C23S81) following Admission will take place within CREST, subject to certain exceptions. Investec reserves the right to require settlement for, and delivery of, the Placing Shares (or a portion thereof) to Placees in certificated form if, in Investec's opinion, delivery or settlement is not possible or practicable within the CREST system within the timetable set out in this Announcement or would not be consistent with the regulatory requirements in any Placee's jurisdiction. Following close of the Placing, each Placee allocated Placing Shares in the Placing will be sent a contract note in accordance with the standing arrangements in place with Investec, stating the number of Placing Shares allocated to it at the Placing Price, the aggregate amount owed by such Placee to Investec and settlement instructions. Each Placee agrees that it will do all things necessary to ensure that delivery and payment is completed in accordance with either the standing CREST or certificated settlement instructions that it has in place with Investec.

The Company will deliver the Placing Shares to a CREST account operated by Investec as agent for the Company and Investec will enter its delivery instruction into the CREST system. Investec will hold any Placing Shares delivered to this account as nominee for the Placees. The input to CREST by a Placee of a matching or acceptance instruction will then allow delivery of the relevant Placing Shares to that Placee against payment.

A Placee's entitlement to receive any Placing Shares will be conditional on Investec receiving payment in full for such Placing Shares from the relevant Placee by the relevant time stated in the contract note. Placees should instruct their CREST agent to make arrangements for payment for any Placing Shares which Placees are required to acquire as soon as possible.

It is expected that settlement will take place on 24 April 2014 on a DVP basis in accordance with the instructions set out in the contract note.

Interest is chargeable daily on payments not received from Placees on the due date in accordance with the arrangements set out above at the rate of two percentage points above LIBOR as determined by Investec.

Each Placee agrees that, if it does not comply with these obligations, Investec may sell any or all of the Placing Shares allocated to that Placee on such Placee's behalf and retain from the proceeds, for Investec's account and benefit, an amount equal to the aggregate amount owed by the Placee plus any interest due. The relevant Placee will, however, remain liable for any shortfall below the aggregate amount owed by it and may be required to bear any stamp duty or stamp duty reserve tax (together with any interest or penalties) which may arise upon the sale of such Placing Shares on such Placee's behalf.

If Placing Shares are to be delivered to a custodian or settlement agent, Placees should ensure that the contract note is copied and delivered immediately to the relevant person within that organisation.

Insofar as Placing Shares are registered in a Placee's name or that of its nominee or in the name of any person for whom a Placee is contracting as agent or that of a nominee for such person, such Placing Shares should, subject as provided below, be so registered free from any liability to UK stamp duty or stamp duty reserve tax.

Placees will not be entitled to receive any fee or commission in connection with the Placing.

Representations and warranties

By participating in the Placing each Placee (and any person acting on such Placee's behalf) acknowledges, undertakes, represents, warrants, agrees and accepts (as the case may be) that:

1. it has read this Announcement in its entirety and its acquisition of the Placing Shares is subject to the terms and conditions of the Placing as referred to and included in this Announcement;

2. no offering document or prospectus has been prepared in connection with the Placing and that it has not received and will not receive a prospectus or other offering document in connection with the Placing;

3. the Ordinary Shares are listed on the Official List of the UK Listing Authority and traded on the main market of the London Stock Exchange and the Company is therefore required to publish Exchange Information and that the Placee is able to obtain or access such information or comparable information concerning any other publicly traded company without undue difficulty;

4. (i) it has made its own assessment of the Placing Shares and has relied on its own investigation of the business, financial or other position of the Company in accepting a participation in the Placing; (ii) none of Investec, the Company, the Investment Manager, any of their respective affiliates or any person acting on behalf of any of them has provided, or will provide, it with any material regarding the Placing Shares in addition to this Announcement; and (iii) it has not requested Investec, the Company, the Investment Manager or any of their respective affiliates or any person acting on behalf of any of them to provide it with any such information;

5. the content of this Announcement is exclusively the responsibility of the Company and that none of Investec, its affiliates or any person acting on its or their behalf has or shall have any liability for any information, representation or statement contained in this Announcement or any information previously or concurrently published by or on behalf of the Company and will not be liable for any Placee's decision to participate in the Placing based on any information, representation or statement contained in this Announcement or elsewhere (save that nothing in this paragraph shall exclude the liability of any person for fraudulent misrepresentation);

6. none of Investec, the Company, the Investment Manager or any of their affiliates or any person acting on its or their behalf has made any representations to it, express or implied, with respect to the accuracy, completeness or adequacy of any Exchange Information and each of them expressly disclaims any liability in respect thereof (save that nothing in this paragraph shall exclude the liability of any person for fraudulent misrepresentation);

7. the only information on which it has relied in committing itself to subscribe for the Placing Shares is contained in this Announcement and any Exchange Information and that it has not received or relied on any information given, or any representations, warranties or statements made, by Investec, the Company, the Investment Manager, any of their affiliates or any person acting on behalf of any of them and none of Investec, the Company, the Investment Manager, any of their affiliates or any person acting on behalf of any of them will be liable for its decision to accept an invitation to participate in the Placing based on any information, representation, warranty or statement other than that contained in this Announcement and any Exchange Information;

8. it has neither received nor relied on any confidential price sensitive information concerning the Company in accepting this invitation to participate in the Placing;

9. it has the funds available to pay for the Placing Shares for which it has agreed to subscribe and acknowledges, agrees and undertakes that it will pay the total subscription amount in accordance with the terms of this Announcement on the due time and date set out herein, that it will do all things necessary on its part to ensure that payment for such Placing Shares and their delivery to it or at its discretion is completed in accordance with the standing CREST instructions that it has in place, or puts in place, with Investec, failing which the relevant Placing Shares may be placed with other placees or sold at such price as Investec, at its absolute discretion, determines and it will remain liable for any shortfall below the new proceeds of such sale and the placing proceeds of such Placing Shares and may be required to bear any stamp duty or stamp duty reserve tax together with any interest or penalties due pursuant to the terms set out in this Announcement) which may arise upon the sale of the Placee's Placing Shares on its behalf;

10. it: (i) is entitled to subscribe for the Placing Shares under the laws of all relevant jurisdictions; (ii) has fully observed the laws of all relevant jurisdictions; (iii) has the requisite capacity and authority and is entitled to enter into and to perform its obligations as a subscriber for Placing Shares and will honour such obligations; and (iv) has obtained all necessary consents and authorities (including, without limitation, in the case of any person on whose behalf it is acting, all necessary consents and authorities to agree to the terms set out or referred to in this Announcement) to enable it to enter into the transactions contemplated hereby and to perform its obligations in relation thereto and, in particular, if it is a pension fund or investment company it is aware of and acknowledges it is required to comply with all applicable laws and regulations with respect to its subscription for Placing Shares;

11. if in a member state of the European Economic Area which has implemented the AIFMD, it is a person to whom the Placing Shares may be marketed lawfully under the AIFMD or under the applicable implementing legislation (if any) of such member state;

12. if it is resident in Guernsey, as the Placing Shares are not being offered to the public in Guernsey, it is regulated by the Guernsey Financial Services Commission and/or has been offered the shares by an entity appropriately licensed under the Protection of Investors (Bailiwick of Guernsey) Law, 2008;

13. it is not, and any person who it is acting on behalf of is not, and at the time the Placing Shares are subscribed will not be, a resident of, or with an address in, or subject to the laws of, Australia, Canada, Japan or the Republic of South Africa, and it acknowledges and agrees that the Placing Shares have not been and will not be registered or otherwise qualified under the securities legislation of Australia, Canada, Japan or the Republic of South Africa and may not be offered, sold, or acquired, directly or indirectly, within those jurisdictions;

14. (i) the Placing Shares have not been and will not be registered under the US Securities Act or with any state or other jurisdiction of the United States, nor approved or disapproved by the US Securities and Exchange Commission, any state securities commission in the United States or any other United States regulatory authority; (ii) it will not offer, sell or deliver, directly or indirectly, any Placing Shares in or into the United States other than pursuant to an effective registration under the US Securities Act or in a transaction exempt from, or not subject to, the registration requirements thereunder and in compliance with any applicable securities laws of any state or other jurisdiction of the United States; and (iii) it is outside of the United States, not acting on a non-discretionary basis for the account or benefit of a person located within the United States at the time the undertaking to acquire the Placing Shares is given and is otherwise acquiring the Placing Shares in an "offshore transaction" meeting the requirements of Regulation S promulgated under the US Securities Act;

15. it is a Qualified Investor. For such purposes, it undertakes that it will acquire, hold, manage and (if applicable) dispose of any Placing Shares that are allocated to it for the purposes of its business only;

16. it has only communicated or caused to be communicated, and will only communicate or cause to be communicated, any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) relating to the Placing Shares in circumstances in which section 21(1) of FSMA does not require approval of the communication by an authorised person and it acknowledges and agrees that this Announcement has not been approved by Investec in its capacity as an authorised person under section 21 of FSMA and it may not, therefore, be subject to the controls which would apply if it was made or approved as financial promotion by an authorised person;

17. it is aware of and acknowledges that it is required to comply with all applicable provisions of FSMA with respect to anything done by it in relation to the Placing Shares in, from or otherwise involving, the United Kingdom;

18. it will not make any offer to the public of the Placing Shares and has not offered or sold and will not offer or sell any Placing Shares to persons in the United Kingdom or elsewhere in the European Economic Area prior to Admission, except to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their business or otherwise in circumstances which have not resulted in and which will not result in an offer to the public in the United Kingdom for the purposes of section 85(1) of FSMA or an offer to the public in any other member state of the European Economic Area within the meaning of the Prospectus Directive;

19. it has not been engaged to subscribe for the Placing Shares on behalf of any other person who is not a Qualified Investor unless the terms on which it is engaged enable it to make decisions concerning the acceptance of offers of transferable securities on the client's behalf without reference to the client, as described in section 86(2) of FSMA;

20. it is acting as principal only in respect of the Placing or, if it is acting for any other person: (i) it is duly authorised to do so and has full power to make the acknowledgments, representations and agreements herein on behalf of each such person; and (ii) it is and will remain liable to the Company and/or Investec for the performance of all its obligations as a Placee in respect of the Placing (regardless of the fact that it is acting for another person);

21. no action has been or will be taken by either the Company, Investec or any of their affiliates or any person acting on their behalf that would, or is intended to, permit a public offer of the Placing Shares in any country or jurisdiction;

22. it is aware of and acknowledges that it is required to comply with its obligations in connection with money laundering under the Proceeds of Crime Act 2002, the Terrorism Act 2000, the Terrorism Act 2006 and the Money Laundering Regulations 2007 (the "Regulations") and, if making payment on behalf of a third party, that satisfactory evidence has been obtained and recorded by it to verify the identity of the third party as required by the Regulations;

23. it is aware of the obligations regarding insider dealing in the Criminal Justice Act 1993, section 118 of FSMA and the Proceeds of Crime Act 2002 and confirms that it has and will continue to comply with those obligations;

24. the allocation, allotment, issue and delivery to it, or the person specified by it for registration as a holder of Placing Shares, will not give rise to a stamp duty or stamp duty reserve tax liability under any of sections 67, 70, 93 or 96 of the Finance Act 1986 (depositary receipts and clearance services) and that no instrument under which it subscribes for Placing Shares (whether as principal, agent or nominee) would be subject to stamp duty or the increased rates referred to in those sections and that it, or the person specified by it for registration as a holder of Placing Shares, is not participating in the Placing as nominee or agent for any person or persons to whom the allocation, allotment, issue or delivery of Placing Shares would give rise to such a liability;

25. it, or the person specified by it for registration as a holder of the Placing Shares, will be liable for any stamp duty and all other stamp, issue, securities, transfer, registration, documentary or other duties or taxes (including any interest, fines or penalties relating thereto), if any, payable (whether in or outside of the United Kingdom) on acquisition of any of the Placing Shares or the agreement to subscribe for the Placing Shares and acknowledges and agrees that none of Investec, the Company, any of their respective affiliates or any person acting on behalf of them will be responsible for any liability to stamp duty or stamp duty reserve tax resulting from a failure to observe this requirement. Each Placee and any person acting on behalf of such Placee agrees to participate in the Placing, and agrees to indemnify the Company and Investec on an after-tax basis in respect of the same, on the basis that the Placing Shares will be allotted to the CREST stock account of Investec who will hold them as nominee on behalf of such Placee until settlement in accordance with its standing settlement instructions;

26. none of Investec, any of its affiliates or any person acting on behalf of any of them has or shall have any liability for any information, representation or statement contained in this Announcement or for any information previously published by or on behalf of the Company or any other written or oral information made available to or publicly available or filed information or any representation, warranty or undertaking relating to the Company, and will not be liable for its decision to participate in the Placing based on any information, representation, warranty or statement contained in this Announcement or elsewhere, provided that nothing in this paragraph shall exclude any liability of any person for fraud;

27. none of Investec, any of its affiliates or any person acting on behalf of any of them is making any recommendations to it, advising it regarding the suitability of any transactions it may enter into in connection with the Placing and that its participation in the Placing is on the basis that it is not and will not be a client of Investec and that Investec has no duties or responsibilities to it for providing the protections afforded to its clients or customers under the rules of the FCA, for providing advice in relation to the Placing, in respect of any warranties, undertakings or indemnities contained in the Placing Agreement or for the exercise or performance of any of its rights and obligations thereunder, including any rights to waive or vary any conditions or exercise any termination right;

28. in order to ensure compliance with the Money Laundering Regulations 2007, Investec (for itself and as agent on behalf of the Company) or the Company's registrars may, in their absolute discretion, require verification of its identity. Pending the provision to Investec or the Company's registrars, as applicable, of evidence of identity, definitive certificates in respect of the Placing Shares may be retained at Investec's absolute discretion or, where appropriate, delivery of the Placing Shares to it in uncertificated form may be delayed at Investec's or the Company's registrars', as the case may be, absolute discretion. If within a reasonable time after a request for verification of identity Investec (for itself and as agent on behalf of the Company) or the Company's registrars have not received evidence satisfactory to them, Investec may, at its absolute discretion, terminate its commitment in respect of the Placing, in which event the monies payable on acceptance of allotment will, if already paid, be returned without interest to the account of the drawee's bank from which they were originally debited;

29. Investec and its affiliates, acting as an investor for its or their own account(s), may bid or subscribe for and/or purchase Placing Shares and, in that capacity, may retain, purchase, offer to sell or otherwise deal for its or their own account(s) in the Placing Shares, any other securities of the Company or other related investments in connection with the Placing or otherwise. Accordingly, references in this Announcement to the Placing Shares being offered, subscribed, acquired or otherwise dealt with should be read as including any offer to, or subscription, acquisition or dealing by, Investec and/or any of their respective affiliates acting as an investor for its or their own account(s). Neither Investec nor the Company intend to disclose the extent of any such investment or transaction otherwise than in accordance with any legal or regulatory obligation to do so;

30. these terms and conditions and any agreements entered into by it pursuant to these terms and conditions shall be governed by and construed in accordance with the laws of England and Wales and it submits (on behalf of itself and on behalf of any person on whose behalf it is acting) to the exclusive jurisdiction of the English courts as regards any claim, dispute or matter arising out of any such contract, except that enforcement proceedings in respect of the obligation to make payment for the Placing Shares (together with any interest chargeable thereon) may be taken by the Company or Investec in any jurisdiction in which the relevant Placee is incorporated or in which any of its securities have a quotation on a recognised stock exchange;

31. the Company, Investec and their respective affiliates and others will rely upon the truth and accuracy of the foregoing agreements, acknowledgements, representations, warranties and undertakings which are given to Investec, on its own behalf and on behalf of the Company, and are irrevocable;

32. it irrevocably appoints any duly authorised officer of Investec as its agent for the purpose of executing and delivering to the Company and/or its registrars any documents on its behalf necessary to enable it to be registered as the holder of any of the Placing Shares for which it agrees to subscribe or purchase upon the terms of this Announcement;

33. it will indemnify on an after tax basis and hold the Company, Investec and their respective affiliates harmless from any and all costs, claims, liabilities and expenses (including legal fees and expenses) arising out of or in connection with any breach of the representations, warranties, undertakings, agreements and acknowledgements in this Appendix and further agrees that the provisions of this Appendix shall survive after completion of the Placing;

34. it agrees to be bound by the terms of the articles of association of the Company;

35. (i) it has knowledge and experience in financial, business and international investment matters and is required to evaluate the merits and risks of subscribing for the Placing Shares; (ii) it is experienced in investing in securities of this nature and is aware that it may be required to bear, and is able to bear, the economic risk of, and is able to sustain a complete loss in connection with, the Placing; and (iii) it has relied upon its own examination and due diligence of the Company and its associates, taken as a whole, and the terms of the Placing, including the merits and risks involved; and

36. its commitment to subscribe for Placing Shares on the terms set out herein and in the contract note will continue notwithstanding any amendment that may in future be made to the terms of the Placing and that it will have no right to be consulted or require that their consent be obtained with respect to the Company's conduct of the Placing.

The representations, warranties, acknowledgements and undertakings contained in this Appendix are given to Investec for itself and on behalf of the Company and are irrevocable.

When a Placee or person acting on behalf of the Placee is dealing with Investec, any money held in an account with Investec on behalf of the Placee and/or any person acting on behalf of the Placee will not be treated as client money within the meaning of the rules and regulations of the FCA. The Placee acknowledges and agrees that the money will not be subject to the protections conferred by the client money rules; as a consequence, this money will not be segregated from Investec's money in accordance with the client money rules and will be used by Investec in the course of its own business; and the Placee will rank only as a general creditor of Investec.

Past performance or information in this Announcement cannot be relied upon as a guide to future performance.

Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this Announcement.

All times and dates in this Announcement may be subject to amendment.

DEFINITIONS

In addition to the terms previously defined, the following definitions apply throughout this Announcement unless the context otherwise requires: