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EJF Investments Ltd (EJFI) announced on 24 March 2025 that its Board is considering refinancing its 2025 Zero Dividend Preference Shares (ZDP Shares), due for repayment on 18 June 2025 for approximately £26.9 million. The preferred option is to issue up to 28 million new 2029 ZDP Shares at 100 pence per share, with an approximate 4.75-year term, an 8.50% gross redemption yield, and a cover ratio of at least 3.0x. Shareholder approval for a 2029 ZDP Share issuance was obtained on 17 December 2024, with final proposals expected before the end of April 2025.
| Date | 24 Mar 2025 |
| Time | 07:00:10 |
| Category | Miscellaneous |
| ID | 8347B |
FOR IMMEDIATE RELEASE
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE REPUBLIC OF IRELAND), AUSTRALIA, CANADA, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO.
24 March 2025
EJF Investments Ltd
("EJFI" or the "Company")
Potential issue of new zero dividend preference shares
The Board of EJFI, which provides investors exposure to a diversified portfolio of debt issued by smaller US banks and insurance companies and participation in certain management fee income streams of EJF Capital LLC, have been considering the Company's options for a refinancing of the 2025 Zero Dividend Preference Shares ("2025 ZDP Shares"), which are due for repayment in the amount of approximately £26.9 million on 18 June 2025.
The Board's current preferred refinancing option is to move forward with an issuance of up to 28 million new 2029 Zero Dividend Preference Shares ("2029 ZDP Shares"). The 2029 ZDP shares would be issued at a price of 100 pence per ZDP share, have a term of approximately 4.75 years, a gross redemption yield of 8.50 per cent. and a cover ratio of at least 3.0x (the "Potential ZDP Issue").
Under the proposed arrangements, holders of 2025 ZDP Shares would be offered the option of rolling their existing holdings into 2029 ZDP Shares ("ZDP Rollover") and, to the extent that the Potential ZDP Issue is not satisfied by the ZDP Rollover, then a placing of new 2029 ZDP Shares.
The Board, in conjunction with the Company's advisers, is working towards publishing final proposals before the end of April 2025, including a prospectus for the Potential ZDP Issue. Shareholder approval for an issuance of 2029 ZDP Shares was obtained at the Extraordinary General Meeting of the Company held on 17 December 2024.
Shareholders in the Company should note that the Board's plans are now at an advanced stage though the details remain subject to change, in whole or in part.
ENQUIRIES
For the Investment Manager
EJF Investments Manager LLC
Mungo Hargreaves / Jay Ghatalia
[email protected] / [email protected]
+44 20 3752 6775 / +44 203 752 6776
For the Company Secretary and Administrator
Apex Financial Services (Alternative Funds) Limited
+44 204 549 0721
For the Broker
Panmure Liberum
Darren Vickers
+44 203 100 2222
Barclays Bank PLC
Dion Di Miceli/Stuart Muress/James Atkinson
+44 207 623 2323
About EJF Investments Ltd
EJFI's objective is to provide shareholders with attractive risk adjusted returns through regular dividends and capital growth over the long term. EJFI generates exposure primarily to a diversified portfolio of loans issued by financial institutions and related or similar assets in the U.S., U.K. and Europe.
EJFI currently invests primarily in CDO Equity Tranches structured by an affiliate of EJF Capital LLC, providing levered exposure to a highly diversified portfolio of securities issued by U.S. financial institutions (banks and insurance companies), these being Risk Retention Investments.
EJFI is a registered closed-ended limited liability company incorporated in Jersey under the Companies (Jersey) Law 1991, as amended, on 20 October 2016 with registered number 122353. The Company is regulated by the Jersey Financial Services Commission (the "JFSC"). The JFSC is protected by both the Collective Investment Funds (Jersey) Law 1988 and the Financial Services (Jersey) Law 1998, as amended, against liability arising from the discharge of its functions under such laws.
The JFSC has not reviewed or approved this announcement.
LEI: 549300XZYEQCLA1ZAT25
Investor information & warnings
The latest available information on the Company can be accessed via its website at www.ejfi.com.
This communication has been issued by, and is the sole responsibility of, the Company and is for information purposes only. It is not, and is not intended to be an invitation, inducement, offer or solicitation to deal in the shares of the Company. The price and value of shares in the Company and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of shares in the Company. An investment in the Company should be considered only as part of a balanced portfolio of which it should not form a disproportionate part. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision.