Invictus Global Management Comments on Capital Senior Living Scare Tactics

Rhea-AI Summary

Invictus Global Management, a major shareholder of Capital Senior Living Corporation (CSU), criticized the company's claims that it may face insolvency without shareholder support for a dilutive financing deal with Conversant Capital. Invictus argues that it can provide necessary funds without conditions, enabling CSU to manage near-term debts and establish a better long-term financing solution. The firm emphasizes that rejecting the Conversant deal is a step toward reducing dilution, asserting CSU is not in a financial crisis and can attract support for optimized financing options.

Positive

• Invictus is willing to provide capital to CSU without conditions, which can help stabilize the company's financial position.
• The proposed funding from Invictus aims to minimize shareholder dilution and associated costs.
• Invictus believes the company can improve its financial situation without resorting to the Conversant financing package.

Negative

• CSU is under pressure to obtain shareholder approval for a highly dilutive financing option, which may harm its equity value.
• The company's recent claims of potential insolvency may indicate underlying financial instability.

AUSTIN, Texas, Oct. 13, 2021 /PRNewswire/ -- Invictus Global Management, LLC (together with its affiliates, "Invictus"), one of the largest shareholders of Capital Senior Living Corporation ("CSU" or the "Company") (NYSE: CSU), today provided the following commentary in response to recent claims by the Company that it will be sent "down the path of insolvency" if CSU shareholders do not support its highly dilutive financing with Conversant Capital:

"As we have been saying for weeks, Invictus stands ready, willing and able to provide capital to CSU without conditions (other than customary documentation) or diligence. That initial tranche of capital will ensure the Company can extend its near-term maturities and execute an optimal, long-term financing arrangement that minimizes dilution and cost to shareholders, while at the same time providing operating flexibility for the business.

The Company's attempt to coerce its shareholders into voting for the exceedingly dilutive Conversant financing package, under the threat that CSU's equity value will otherwise be wiped out, is shameful. We have considerable experience with distressed and near-bankrupt companies, and, in our view, CSU is simply not in that position. Notably, the Company has not offered the opinion of any experienced advisor that agrees CSU is a candidate for bankruptcy, nor could it. 

A vote against the Conversant deal is not a vote for a "path to insolvency," but is instead a vote for an improved, less dilutive financing. As soon as the Conversant deal is rejected, we will happily provide sufficient capital, without delay, to allow for CSU to continue its fundamental performance improvements. We can then proceed to put a package of low-cost, long-term financing in place, either in the form we have proposed or in some other mutually agreeable form. (If the Company wishes to have more equity in its capital structure, we can certainly provide for more equity within our framework.)

In all events, we are confident that other CSU shareholders will enthusiastically participate in a long-term, optimized financing solution, and we will welcome that participation."

About Invictus Global Management

Invictus is an Austin-based private equity fund focused on special situations and private credit.

Investor and Media Contact:
Amit Patel
Info@invictus-gm.com

View original content:https://www.prnewswire.com/news-releases/invictus-global-management-comments-on-capital-senior-living-scare-tactics-301398832.html

SOURCE Invictus Global Management, LLC

FAQ

What did Invictus Global Management say about Capital Senior Living Corporation's financial situation?

Invictus stated that CSU is not on the path to insolvency and can secure financing without the highly dilutive Conversant Capital deal.

How does Invictus plan to support CSU financially?

Invictus is ready to offer capital to CSU without conditions to help manage its debts and improve long-term financing.

What are the risks of CSU accepting the Conversant Capital financing?

CSU risks significant dilution of its equity value if shareholders support the Conversant financing package.

When was this commentary from Invictus Global Management released?

The commentary was released on October 13, 2021.

What is the significance of the commentary by Invictus for CSU shareholders?

The commentary suggests that rejecting the Conversant deal could lead to better financing options, protecting shareholder interests.