TIDMBGLF
RNS Number : 4254I
Blackstone / GSO Loan Financing Ltd
11 December 2020
Blackstone / GSO Loan Financing Limited
11 December 2020
Portfolio Trading Activity
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR
INDIRECTLY, TO U.S. PERSONS OR INTO OR IN THE UNITED STATES,
AUSTRALIA, CANADA OR JAPAN.
Blackstone / GSO Loan Financing Limited (the "Company") is
pleased to report the results of recent sale activity within its
portfolio, which the Company's Board and Adviser believe supports
the validity of the Company's valuation policy.
Based on the Adviser's view of the robust market technicals,
Blackstone / GSO Corporate Funding DAC ("BGCF"), in which the
Company is invested, engaged in an exercise to opportunistically
reduce certain positions during the prior two weeks where it held
amounts in excess of the economic majority and/or required amount
under European Risk Retention regulations. As such, BGCF
successfully conducted two BWICS (bids wanted in competition) and
executed the sale of 15 minority positions in CLO Income Notes of
US and European CLOs, totalling EUR53.7 million of par notional
across seven (7) vintages. In aggregate, the positions were sold at
levels in excess of both the mark-to-model and mark-to-market bid
prices for those positions. Furthermore, the Adviser believes that
the economic majority positions retained by the Company should have
additional value.
The Adviser reported that throughout the sale process, it
experienced relatively strong market liquidity and broad
participation from global participants. The average depth of each
CLO Income Note bid was nine (9) counterparties, with many
participants bidding on multiple positions as well as the entire
set of positions offered. We believe this level of demand and the
resulting value is a strong indication of the veracity of the
Company's Published NAV.
The following table summarises the recent sales:
Sale Proceeds Sale Proceeds
Notional Wtd Avg vs. Market vs. Model Avg BWIC
# of CLO Traded Sale Bid Value Bid Value Market
Positions Vintages (mm) Price (mm) (mm)(1) Bid Depth
US CLOs 8 2015-2019 $ 36.1 43.8 $0.32 $0.74 10(2)
---------- ----------- ---------- ------------ -------- -------------- -------------- -----------
EUR CLOs 7 2014-2020 EUR 24.0 56.5 EUR0.49 (EUR0.43) 8
---------- ----------- ---------- ------------ -------- -------------- -------------- -----------
Total
CLOs 15 2014-2020 EUR 53.7(3) 49.5(3) EUR0.75(3) EUR0.18(3) 9
(1) Please note that the Company's published NAV is calculated
using the mid of model valuations rather than the model bid, which
are used here for comparison purposes given given that the Company
and the Adviser believe that bid prices are more relevant to
compare to actual trade values. Comparison between Sale Price and
Model Valuation is based on the modelled valuations as of the most
recent month end prior to the transaction trade date, which for US
CLOs was 30(th) October 2020 and for European CLOs was 30(th)
November. Additionally, the European CLO modelled valuations have
not been finalised and are subject to change prior to the final net
asset value declaration.
(2) Excludes one position that was not sold via BWIC.
(3) Converted based on an exchange rate of: EUR1.0000: $1.21463 as of 3 December 2020.
NOTE: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE
PERFORMANCE RESULTS AND THERE CAN BE NO ASSURANCE THAT BGLF WILL
ACHIEVE COMPARABLE RESULTS.
IMPORTANT INFORMATION
Any reference herein to future returns or distributions is a
target and not a forecast and there can be no guarantee or
assurance that it will be achieved.
This document has been issued by Blackstone / GSO Loan Financing
Limited (the "Company"), and should not be taken as an inducement
to engage in any investment activity and is for the purpose of
providing information about the Company. This document does not
constitute or form part of, and should not be construed as, any
offer for sale or subscription of, or solicitation of any offer to
buy or subscribe for, any share in the Company or securities in any
other entity, in any jurisdiction, including the United States,
Canada, Japan or South Africa nor shall it, or any part of it, or
the fact of its distribution, form the basis of, or be relied on in
connection with, any contract or investment decision whatsoever, in
any jurisdiction.
This document, and the information contained therein, is not for
viewing, release, distribution or publication in or into the United
States, Canada, Japan, South Africa or any other jurisdiction where
applicable laws prohibit its release, distribution or publication,
and will not be made available to any national, resident or citizen
of the United States, Canada, Japan or South Africa. The
distribution of this document in other jurisdictions may be
restricted by law and persons into whose possession this document
comes must inform themselves about, and observe, any such
restrictions. Any failure to comply with the restrictions may
constitute a violation of the federal securities law of the United
States and the laws of other jurisdictions.
The shares issued and to be issued by the Company (the "Shares")
have not been and will not be registered under the US Securities
Act of 1933, as amended (the "Securities Act"), or with any
securities regulatory authority of any state or other jurisdiction
of the United States. The Shares may not be offered, sold, resold,
pledged, delivered, distributed or otherwise transferred, directly
or indirectly, into or within the United States, or to, or for the
account or benefit of, US persons (as defined in Regulation S under
the Securities Act). No public offering of the Shares is being made
in the United States.
The Company has not been and will not be registered under the US
Investment Company Act of 1940, as amended (the "Investment Company
Act") and, as such, holders of the Shares will not be entitled to
the benefits of the Investment Company Act. No offer, sale, resale,
pledge, delivery, distribution or transfer of the Shares may be
made except under circumstances that will not result in the Company
being required to register as an investment company under the
Investment Company Act. Neither the U.S. Securities and Exchange
Commission (the "SEC") nor any state securities commission has
approved or disapproved of the Shares or passed upon or endorsed
the merits of the offering of the Shares or the adequacy or
accuracy of the Prospectus. Any representation to the contrary is a
criminal offence in the United States. In addition, the Shares are
subject to restrictions on transferability and resale in certain
jurisdictions and may not be transferred or resold except as
permitted under applicable securities laws and regulations.
Investors may be required to bear the financial risks of their
investment in the Shares for an indefinite period of time. Any
failure to comply with these restrictions may constitute a
violation of the securities laws of any such jurisdictions.
This document is directed only at: (i) persons having
professional experience in matters relating to investments who fall
within the definition of "investment professionals" in Article
19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005; or (ii) high net worth bodies corporate,
unincorporated associations and partnerships and trustees of high
value trusts as described in Article 49(2) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 and
persons who receive this document who do not fall within (i) or
(ii) above should not rely on or act upon this document.
No liability whatsoever (whether in negligence or otherwise)
arising directly or indirectly from the use of this document is
accepted and no representation, warranty or undertaking, express or
implied, is or will be made by the Company, or any of their
respective directors, officers, employees, advisers,
representatives or other agents ("Agents") for any information or
any of the opinions contained herein or for any errors, omissions
or misstatements. None of the Agents makes or has been authorised
to make any representation or warranties (express or implied) in
relation to the Company or as to the truth, accuracy or
completeness of this document, or any other written or oral
statement provided. In particular, no representation or warranty is
given as to the achievement or reasonableness of, and no reliance
should be placed on any projections, targets, estimates or
forecasts contained in this document and nothing in this document
is or should be relied on as a promise or representation as to the
future.
Unless otherwise indicated, the information provided herein is
based on matters as they exist as of the date of preparation and
not as of any future date. Recipients of this document are
encouraged to contact the Company's representatives to discuss the
procedures and methodologies used to make the projections and other
information provided herein.
All investments are subject to risk, including the loss of the
principal amount invested. Past performance is not necessarily
indicative of future results, and there can be no assurance that
BGLF will achieve comparable results, will meet its target returns,
achieve its investment objectives or be able to implement its
investment strategy. Certain countries have been susceptible to
epidemics, most recently COVID-19, which may be designated as
pandemics by world health authorities. The outbreak of such
epidemics, together with any resulting restrictions on travel or
quarantines imposed, has had and will continue to have a negative
impact on the economy and business activity globally (including in
the countries in which the Company invests), and thereby is
expected to adversely affect the performance of the Company's
Investments. Furthermore, the rapid development of epidemics could
preclude prediction as to their ultimate adverse impact on economic
and market conditions, and, as a result, presents material
uncertainty and risk with respect to the Company and the
performance of its Investments. All investments to be held by the
Company involve a substantial degree of risk, including the risk of
total loss. The value of shares and the income from them is not
guaranteed and can fall as well as rise due to stock market and
currency movements. When you sell your investment you may get back
less than you originally invested. You should always seek expert
legal, financial, tax and other professional advice before making
any investment decision.
Blackstone / GSO Loan Financing Limited is a self-managed Jersey
registered alternative investment fund, and is regulated by the
Jersey Financial Services Commission. The Jersey Financial Services
Commission does not take any responsibility for the financial
soundness of the Company or for the correctness of any statements
made or expressed in this document.
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END
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