Business
Proposals Re. The SME Loan Fund plc
Proposals Re. The SME Loan Fund plc.
About this update from Sancus Lending Group Limited
[{"type":"text","content":"\n \nRNS Number : 3789X GLI Finance Limited 21 February 2017 \n\n21 February, 2017\nGLI FINANCE LIMITED\n(THE \"COMPANY\" OR \"GLIF\")\nProposals Re. The SME Loan Fund plc\n \nFurther to the announcement by The SME Loan Fund plc (\"SMEF\") this morning regarding proposals for its future, the directors of GLI Finance Limited (the \"Directors\") confirm that:\n· GLIF is exploring the potential for a secondary placing of its total holding in SMEF at 90p per share (a discount of 3.2% to SMEF's closing share price of 93p on 20 February 2017), valuing its total holding at £22.7 million (the \"Secondary Placing\"); and\n· Amberton Asset Management Limited (\"Amberton\"), which is 50% owned by GLIF and is the current investment manager of SMEF, is in discussions with SMEF and SQN Capital Management, LLC (\"SQN\") regarding: \n- the potential transfer of the provision of investment management services to SMEF from Amberton to SQN; and\n- the potential appointment by SQN of Amberton as its sub-investment adviser in relation to SMEF's existing portfolio of loans; \n(collectively the \"Transfer of Management Services\").\n \nUpon successful completion of the Secondary Placing, GLIF will use the proceeds to repay the £14.86m syndicated loan, which matures on 15 March 2017. This will allow GLIF to simplify and strengthen its balance sheet. \nIn the event that the Secondary Placing is not completed, the directors of SMEF have announced that they intend to bring forward proposals for the orderly realisation of SMEF's investments and return of surplus capital to shareholders via periodic mandatory redemptions. In the event that such proposals are brought forward, GLIF would vote in favour of them. In such event, the repayment of any unpaid balance of the syndicated loan will be refinanced until receipt of proceeds. \nIn the Company's strategic review announced on 16 February 2016, its goals included to rationalise and invest in the Company's core business, remove unnecessary complexity and initiate measures to strengthen the balance sheet. The disposal of GLIF's investmen...