2 December 2024
Litigation Capital Management
Limited
("LCM" or the
"Company")
Significantly Expanded US$75m
Credit Facility at Below 10% Interest
Litigation Capital Management Limited
(AIM:LIT), a leading international alternative asset manager of
disputes financing solutions, is pleased to announce it has secured
a new, expanded credit facility (the "Credit Facility") with
Northleaf Capital Partners ("Northleaf"), a global private markets
investment firm experienced in litigation finance. The new Credit
Facility provides access to US$75 million in initial credit with
the potential to upsize by a further US$75 million (up to US$150m
in total).
The Credit Facility offers significant
flexibility to drive LCM's growth strategy, supporting both direct
investments and LCM's co-investments into cases funded alongside
its managed funds business. It is secured against LCM's assets, is
available for general corporate purposes, and has an overall term
of four years.
Key features of the Credit Facility
include:
Multi-currency
availability: Available in USD, GBP, and AUD,
the facility supports LCM's global financing needs.
Cost
structure: Interest is set at the relevant
central bank rate plus 5.25% (compared to central bank rate plus 8%
for the prior facility) and is charged on the amount of the
facility that has been drawn. Based on current central bank rates,
this implies an interest rate below 10%. Unlike the prior facility,
there is no profit participation in LCM's direct investments for
the lender.
Drawdown
period and term: The Credit Facility has a
four-year term, with the ability to draw down funds during the
initial two years. It includes the usual financial covenants and
reporting requirements typical of facilities of this
nature.
Patrick
Moloney, CEO of LCM, commented: "Securing this expanded Credit Facility is a
significant step in LCM's growth journey. With this increased
capital flexibility, we are well-positioned to scale our investment
portfolio, capture new opportunities, and drive sustainable
long-term growth. We are excited to leverage this facility to
advance our strategic objectives and support the ongoing growth of
our dispute financing solutions."
Enquiries
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Litigation Capital Management
|
c/o
Tavistock PR
|
|
Patrick Moloney, Chief Executive
Officer
David Collins, Chief Financial
Officer
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Cavendish (Nomad and Joint Broker)
|
Tel: 020
7523 8000
|
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Jonny Franklin-Adams and Rory Sale
(Corporate Finance)
Tim Redfern and Jamie Anderson
(Corporate Broking)
|
|
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Canaccord Genuity (Joint
Broker)
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Tel: 020
7597 5970
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Bobbie Hilliam
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Tavistock PR
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Tel: 020 7920 3150
|
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Katie Hopkins
Simon Hudson
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lcm@tavistock.co.uk
|
NOTES TO EDITORS
Litigation Capital Management (LCM)
is an alternative asset manager specialising in disputes financing
solutions internationally, which operates two business models. The
first is direct investments made from LCM's permanent balance sheet
capital and the second is third party fund management. Under those
two business models, LCM currently pursues three investment
strategies: Single-case funding, Portfolio funding and Acquisitions
of claims. LCM generates its revenue from both its direct
investments and also performance fees through asset
management.
LCM has an unparalleled track record
driven by disciplined project selection and robust risk
management.
Currently headquartered in Sydney,
with offices in London, Singapore, Brisbane and Melbourne, LCM
listed on AIM in December 2018, trading under the ticker
LIT.
www.lcmfinance.com