GCP Asset Backed Income Fund Ltd Co-living Group Loan Update and Net Asset Value (4869L)
13 September 2021 - 4:00PM
UK Regulatory
TIDMGABI TIDMGABC
RNS Number : 4869L
GCP Asset Backed Income Fund Ltd
13 September 2021
13 September 2021
GCP Asset Backed Income Fund Limited
(the "Company", "GCP Asset Backed" or "GABI")
LEI: 213800FBBZCQMP73A815
Co-living Group Loan Update and Net Asset Value
GCP Asset Backed, which invests in asset backed loans, announces
an update on its co-living group (the "Co-living Group") loan.
As announced on 15 July 2021, the Co-living Group had appointed
a large investment bank to run a sales process to better support
its long-term viability. Initial bids were received in June. As a
consequence, the Company's valuation of its loan to the Co-living
Group was reduced for the purpose of determining the Company's net
asset value ("NAV") as at 30 June 2021. The reduction reflected an
increase in the discount rate applied to the loan which was
determined on the basis of the fair value of an offer received in
the sales process as adjusted to reflect transaction risk. The
offer was reaffirmed following second round bids in late July. The
status of the loan and the current bid levels have subsequently
deteriorated which leads the Investment Manager to estimate a
consequent reduction in the NAV of 3.69 pence per share, to 99.02
pence per share (based upon the NAV per share of 102.71p as at 30
June 2021).
The Company participates in the loan to the Co-living Group with
a number of other lenders (the "Lending Syndicate"). The Lending
Syndicate will take prudent steps to maximise the likely recovery
from its loan to the Co-living Group. The Lending Syndicate is
expecting further developments shortly and, when these occur, the
Company will announce relevant details to shareholders. The Company
also anticipates inviting investors to a webinar to discuss its
loan to the Co-living Group in more detail.
The Investment Manager does not believe that any read-across
should be made as a result of the write-down in the value of the
Co-living Group loan to the rest of the Company's portfolio which
continues to perform as expected.
The Investment Manager remains of the opinion that, despite this
write-down, the target dividend for the current financial year will
be maintained and covered by the cashflows generated by the
Company's portfolio.
The information contained in this announcement is deemed by the
Company to constitute inside information as stipulated under the UK
version of the Market Abuse Regulation (EC No. 594/2014), as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018.
For further information, please contact:
Gravis Capital Management Ltd +44 (0)20 3405 8500
David Conlon
Joanne Fisk
Investec Bank plc +44 (0)20 7597 4000
Helen Goldsmith
Denis Flanagan
Neil Brierley
Buchanan/Quill +44 (0)20 7466 5000
Helen Tarbet
Sarah Gibbons-Cook
Henry Wilson
Notes to Editors
GCP Asset Backed (GABI) is a closed ended investment company
traded on the Main Market of the London Stock Exchange. Its
investment objective is to generate attractive risk-adjusted
returns primarily through regular, growing distributions and modest
capital appreciation over the long term.
The Group seeks to meet its investment objective by making
investments in a diversified portfolio of predominantly UK based
asset back loans which have contracted, predictable medium to long
term cash flows and/or physical assets.
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END
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