30 June 2016Print This Post

Vannin strikes deal to increase capital to $500m

Craddock: wider range of funding solutions

Craddock: wider range of funding solutions

Third-party funder Vannin Capital has entered into a “significant” senior secured debt facility from funds managed by New York Stock Exchange-listed Fortress Investment Group that takes its capital to $500m (£373m).

Fortress is a global investment manager with approximately $71bn of assets under management and more than 1,600 institutional investors and private clients worldwide.

Vannin chairman Dan Craddock said: “Recognition from blue-chip asset management firm Fortress is testament to Vannin’s continued success and global brand. We’re seeing an ever-increasing number of opportunities, particularly in Europe, Australasia and the US where our teams are based.

“The new facility will enable us to launch a wider range of funding solutions and expand our already large and diversified asset portfolio.”

Meanwhile, fellow funder Burford Capital is to repurchase and cancel 40m preference shares listed on the Channel Islands Securities Exchange.

The AIM-listed funder explained: “In 2013, when Burford was not yet ready to access the debt markets, Burford issued these contingent preference shares to provide back-up liquidity in the event of a funding shortfall.

“The preference shares act essentially like a bank line of credit: Burford is able to call capital from holders if needed, and pays a stand-by fee for the commitment to provide such capital. Given Burford’s growth and ability to access other forms of capital, it no longer makes sense to pay the 3% stand-by fee for the preference shares. The total cost of redeeming the preference shares to Burford is $0.11 in aggregate.”

Upon cancellation of the preference shares, the units will be delisted.

By Neil Rose


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