Business
Tender Offer and Annual Redem
Tender Offer and Annual Redem.
About this update from Cavendish Plc
[{"type":"text","content":"\n RNS Number : 4999N FRM Credit Alpha Limited 18 February 2009 \n\nFRM Credit Alpha Limited (the 'Company')\n\n18 February 2009\n\nTender Offer and Introduction of Annual Redemption Facility\n\nTHIS COMMUNICATION IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA.\n\n THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS AND IS NOT AN OFFER TO SELL OR A SOLLICITATION OF ANY OFFER TO BUY ANY SECURITIES IN THE UNITED STATES OR IN ANY OTHER JURISDICTION.\n\n\nIn common with many other UK listed fund of hedge funds, the Company's shares have now traded at a substantial discount to net asset value ('NAV') per share for several months.\n \nUnder the terms of the Company's prospectus dated 1 September 2008 (the 'Prospectus'), the Board has absolute discretion to implement a tender offer of up to 25 per cent. of a class of shares where such class of shares has, in any 12 months preceding the last NAV calculation date, traded at an average discount in excess of 5 per cent. of the NAV of that share class.\n\nThe Board has resolved, having considered a range of proposals with its advisers and taken account of the Company's current level of cash and the liquidity of its underlying holdings, to take the following actions (together the 'Proposals'):\n\n1. The Board proposes to make a tender offer of up to 20 per cent. of the Company's shares based on the 30 June 2009 NAV, with payment expected by 30 September 2009. The tender is expected to be at the 30 June 2009 NAV less costs. The size of the tender offer will be dependent on preserving sufficient cash reserves to meet the Company's foreign currency hedging requirements as well as sufficient cash being available from the redemption of the Company's underlying portfolio.\n\nThe terms and conditions for the proposed tender offer will be set out in a circular to be published within the next three months.\n\n2. Following the completion of the tender offer, the Board proposes to replace the existing tender offer provisions with an annual redemption facility, to be offered at ...