AUSTIN, Texas, October 13, 2021 / PRNewswire / – Invictus Global Management, LLC (together with its affiliates, “Invictus”), one of the principal shareholders of Capital Senior Living Corporation (“CSU” or the “Company”) (NYSE: CSU), has provided today the following commentary in response to recent claims by the Company that it would be sent “on the path to insolvency” if CSU shareholders do not support its highly dilutive funding with Conversant Capital:
âAs we have been saying for weeks, Invictus is ready, willing and able to provide capital to CSU without conditions (other than the usual documentation) or due diligence. This initial tranche of capital will ensure that the company can extend its maturities in the short term. and execute an optimal long-term financing arrangement that minimizes dilution and costs to shareholders, while providing operational flexibility for the business.
The company’s attempt to coerce its shareholders into voting for Conversant’s hugely dilutive financial package, under threat of CSU’s equity value being otherwise wiped out, is shameful. We have considerable experience of struggling and on the verge of bankruptcy and in our opinion, CSU is just not in that position. Notably, the Company has not given the opinion of any experienced advisor who recognizes that CSU is a candidate for bankruptcy, and neither could.
A vote against the Conversant deal is not a vote for a “path to insolvency”, but rather a vote for improved and less dilutive funding. As soon as the Conversant deal is rejected, we look forward to providing sufficient capital, without delay, to allow CSU to continue to make fundamental improvements in performance. We can then proceed to set up a low-cost, long-term financing package, either in the form we have proposed or in another mutually acceptable form. (If the Company wishes to have more equity in its capital structure, we can certainly provide more equity in our framework.)
In any case, we are confident that the other CSU shareholders will enthusiastically participate in an optimized long-term financing solution, and we welcome this participation. “
About Invictus Global Management
Invictus is a Austin– private equity funds focused on special situations and private credit.
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SOURCE Invictus Global Management, LLC