Alcentra European Fltng Rate Inc Fd Company update (9019F)
12 Marzo 2020 - 9:24AM
UK Regulatory
TIDMAEFS
RNS Number : 9019F
Alcentra European Fltng Rate Inc Fd
12 March 2020
12 March 2020
Alcentra European Floating Rate Income Fund Limited
Company update
The Board of Directors of Alcentra European Floating Rate Income
Fund Limited (the "Company") announces that, following the March
2020 Tender, it has conducted a comprehensive review of the outlook
for the Company. This review, conducted in consultation with the
Company's Investment Manager and Corporate Broker, has been
undertaken in tandem with extensive shareholder consultation.
Following this review, the Board has determined that the Company
should be put into managed wind-down, with cash returned to
shareholders in a timely and efficient manner.
Over the course of the last decade, as expectations of rising
rates (a key requirement for dividend growth) gave way to
expectations that rates would stay low for longer, the demand for
floating rate listed funds diminished. As a result, the Company
ceased trading at a premium to NAV rating and has been returning
capital to Shareholders for two years. The Board does not expect to
see a reversal in this trend in the near future.
The Board is cognisant of current market conditions with regards
to the timing of realisation of assets and returns of capital to
Investors. The Board and the Manager will endeavour to achieve a
balance between maximising the value received from investments and
making timely returns of cash to shareholders, while current market
conditions persist. The Board will continue to seek the views of
shareholders in this regard.
As a result of its deliberations, the Board therefore intends to
publish a circular to shareholders in due course and to convene an
extraordinary general meeting at which it will seek approval from
shareholders to amend the Company's investment objective and policy
and approve any related matters necessary to facilitate a managed
wind-down.
In light of these proposals, the Board proposes to complete the
March 2020 Tender but suspend future Quarterly Tender Offers. The
Company will continue to pay dividends to shareholders as
appropriate.
The Investment Manager is supportive of the Board on this course
of action and has confirmed that it will waive any entitlement to a
fee arising on its termination as investment manager to the
Company.
Capitalised terms used but not defined herein have the meaning
given to them as set out in the circular dated 28 August 2019.
This announcement is released by Alcentra European Floating Rate
Income Fund Limited and contains inside information for the
purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014
("MAR"), and is disclosed in accordance with the Company's
obligations under Article 17 of MAR.
Enquiries:
BNP Paribas Securities Services S.C.A., Guernsey Branch
Jasper Cross +44 (0)1481 750 850
J.P. Morgan Cazenove
William Simmonds +44 (0)20 7742 4000
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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