Fund Purchases Bonds in Exchange for Equus Shares at Net Asset Value
HOUSTON, TX – April 27, 2011 – Equus Total Return, Inc. (NYSE: EQS) ("Equus" or the
"Fund") today announced that it has entered into two separate transactions involving the purchase
of an aggregate of 11,408 bonds ("Bonds") issued by Orco Germany S.A. ("Orco Germany"), a
commercial and multi-family residential real estate holding company and developer based in
Berlin. The consideration provided to the selling bondholders consists of an aggregate of
1,700,000 newly issued shares of common stock of the Fund valued at $4.29 per share, which is
the Fund's most recently reported net asset value per share. Expressed in dollar terms, the
consideration is worth approximately $7.3 million.
The Bonds, which accrue at an interest rate of 4% per annum and mature on May 30, 2012, are
being purchased from existing Orco Germany bondholders at a purchase price of €446.16 per
Bond, which represents a discount of 34% from their face value of €676.00. The Bonds are
scheduled to be redeemed at maturity at 125% of their face value, or €845.00 per bond.
Orco Germany is a subsidiary controlled by Orco Property Group S.A., a Paris-based commercial
and multi-family residential real estate holding company and developer with properties and
operations throughout Eastern Europe. With gross assets of €867 million and a commercial
property portfolio comprising 856,000 square meters of rentable space, Orco Germany is the
largest commercial landowner in Berlin. The shares of Orco Germany are traded on the Prime
Standard of the Frankfurt Stock Exchange under the international securities identification number
("ISIN") LU0251710041. The bonds of Orco Germany are traded on the Luxembourg Stock
Exchange under the ISIN XS0302623953.
"We believe that the investment in the bonds of Orco Germany represents an affirmative step
forward for Equus in securing income-producing investments that possess favorable yield
characteristics," said John Hardy, Executive Chairman of Equus. "Moreover, the discount at
which we will acquire the Bonds, and the premium with which they will be redeemed, in
approximately 13 months, represents a valuable opportunity for the Fund to achieve a solid
return. By structuring the transaction in this manner, we have preserved the Fund's cash
resources, which will be available to make additional investments."
A fairness opinion in respect to the purchase of the Bonds was provided to the Fund from
Horwath Audit France, an independent member of Crowe Horwath International, which is ranked
among the top 10 global accounting networks with 2010 revenues exceeding $2.8 billion, and
more than 140 independent accounting and advisory services firms, with 640 offices and 27,963
professionals and staff in more than 100 countries around the world.
About Equus
The Fund is a business development company that trades as a closed-end fund on the New York Stock Exchange, under the symbol "EQS".
Additional information on the Fund may be obtained from the Fund's website at www.equuscap.com.
This press release may contain certain forward-looking statements regarding future circumstances. These forwardlooking
statements are based upon the Fund's current expectations and assumptions and are subject to various
risks and uncertainties that could cause actual results to differ materially from those contemplated in such forwardlooking
statements including, in particular, the risks and uncertainties described in the Fund's filings with the SEC.
Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as to the date hereof. The Fund undertakes no obligation to release
publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this
release does not constitute an admission by the Fund or any other person that the events or circumstances
described in such statements are material. |
