TIDMMPLF
RNS Number : 0769R
Marble Point Loan Financing Limited
12 June 2018
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12 June 2018
MARBLE POINT LOAN FINANCING LIMITED
Q1 2018 Quarterly Update AND financial statements
The Board of Directors (the "Board") of Marble Point Loan
Financing Limited (the "Company") is pleased to announce that the
Company's unaudited financial statements for the quarter ended 31
March 2018 and inaugural quarterly update letter of Marble Point
Credit Management LLC, the Company's investment manager, are now
available on the Company's website, www.mplflimited.com.
Dear Shareholders:
We are pleased to share this inaugural Quarterly Update Letter
for Q1 2018. Going forward, we intend to use this letter to provide
shareholders with updates on Marble Point Loan Financing Limited
("MPLF" or the "Company") and the markets in which Marble Point
Credit Management LLC ("Marble Point" or the "Investment Manager")
participates. However, for this inaugural letter, we also wish to
highlight key aspects of our investment strategy and philosophy as
well as communicate the key shareholder value performance metrics
that we are focused on over the long term.
On 13 February 2018, MPLF raised $42.5 million of gross proceeds
in its IPO through the issuance of 42,500,001 new ordinary shares
at $1.00 per share. This capital augmented MPLF's existing pre-IPO
NAV of $163.2 million (all existing investors converted to
163,215,892 ordinary shares concurrent with the IPO), resulting in
a post-IPO NAV of $203.7 million and 205,716,892 ordinary shares
outstanding.
Marble Point and its affiliates increased their already
significant investment in MPLF by investing an additional $3.6
million in the IPO, taking the total investment by Marble Point and
its affiliates in MPLF post-IPO to $15.5 million (or 7.5% of the
shares outstanding).()
We are proud to have successfully completed the IPO despite a
period of significant volatility in the equity markets - with the
Dow Jones Industrial Average falling by over 1,000 points on each
of 5 and 8 February 2018 and the FTSE 100 Index falling by 4.8%
from the end of January through 8 February 2018. The loan market
was largely unaffected by the equity market volatility as the
Credit Suisse Leveraged Loan Index ("CSLLI") was only down 4 basis
points from the end of January to 8 February 2018. As of the date
of this letter, MPLF has invested the IPO capital raised.
We appreciate the trust and confidence that existing and new
MPLF shareholders have placed in Marble Point and look forward to
delivering on our stated objectives.
INTRODUCTION
Investment Objective, Strategy and Philosophy
The investment objective of MPLF is to generate stable current
income and to grow NAV by earning an ROE in excess of the amount
distributed as dividends. MPLF targets a low to mid-teens ROE over
the long term.() The Company seeks to achieve its objective
primarily through exposure to a diversified portfolio of U.S.
dollar denominated, broadly syndicated floating rate senior secured
corporate loans owned via CLOs and related vehicles managed by
Marble Point.
Marble Point employs a disciplined methodology that seeks to
invest in loans with a meaningful margin of safety based on the
Investment Manager's assessment of a credit's loan-to-value ratio.
We act with strong credit conviction and seek to build or preserve
par (i.e., principal) value in our portfolios through relative
value analysis and active management.
As the demand for loans continues to exceed the supply (leading
to spread compression and more flexible terms for borrowers),
investment discipline, strong credit conviction and not stretching
for yield take on even greater importance. In our view, the cost of
this discipline is near-term yield, not long-term yield and we
believe that the defensive nature of MPLF's loan portfolio leaves
shareholders well-positioned to benefit from future loan price
volatility through our active management and relative value
approach.
Dividend Policy and Targeted Dividends
It is well understood by Marble Point that an investment company
must earn its dividend or the total return will eventually suffer
(i.e., if dividends paid exceed net income over the long term, NAV
will decrease). As such, we set a long term dividend policy with an
initial targeted 8% annual dividend (payable quarterly) during
MPLF's first year as a public company.(2) Thereafter, MPLF's
Prospectus communicates the intention to increase the dividend to
10% in the second year post-IPO. We believe the 8% annual dividend
for the first year post-IPO is well supported by the existing
pre-IPO portfolio, and allowed for an appropriate amount of time to
deploy the IPO proceeds into income generating investments. Based
on the expeditious deployment of the IPO proceeds, we believe that
the Company is on track to achieving the 10% targeted annual
dividend rate noted in the Prospectus in its second year
post-IPO.((2)
Going forward, we expect MPLF to declare quarterly dividends
each January, April, July and October with a payment date as of the
last business day of those months.
Shareholder-Friendly Structure
We believe MPLF has a fee structure that is among the most
shareholder friendly in the market. Specifically, MPLF does not pay
Company-level management fees on assets that are invested in Marble
Point managed investment vehicles which customarily have
vehicle-level fees, such as the CLOs and the Funding
Subsidiary.(3)
With respect to its investments in Marble Point CLOs and the
Funding Subsidiary, the management fee expense borne by the Company
as an investor in those vehicles is capped at 40 basis points of
total assets via fee participations.((4) This means that, for its
investments in Marble Point CLOs, MPLF receives a rebate of
CLO-level management fees that exceed 40 basis points (to date,
this rebate has been up to 20% of CLO management fees), leading to
incremental cash flow on the Company's investment in a CLO's equity
tranche.
As an example, MPLF acquired 50.6% of the equity in Marble Point
CLO XII on 22 May 2018 (a $22.1 million investment). Based on
MPLF's preferential fee arrangement, MPLF and its affiliates are
rebated 20% of the 50 basis points of management fees charged by
the CLO that are attributable to their 59.5% ownership of the CLO
equity tranche such that MPLF effectively bears only 40 basis
points of management fees. Third-party investors in the 40.5% of
minority equity in this CLO bear a full 50 basis points of
management fees.
Moreover, MPLF does not bear any management fees at either the
Company or vehicle-level on the $31.4 million of CLO debt, loan
accumulation facilities ("LAFs") and fee participations and other
assets owned by the Company as of 30 April 2018. As a result, 15.0%
of MPLF's total assets were not subject to any management fees
whatsoever as of such date.
Key Shareholder Value Performance Metrics
In terms of delivering value to shareholders over the long term,
we are focused on three key performance metrics:
Shareholder Value Performance Metrics
1) Earning Net Investment 2) Growth in Net 3) The potential
Income ("NII") plus Asset Value per share, to grow the dividend
Realized Gains / through deploying over time
(Losses) per share retained earnings
in excess of dividends at a return in excess
per share of the dividend rate
-------------------------- ------------------------ ----------------------
As of 30 April 2018, the weighted average effective yield on the
Company's equity investments in Marble Point CLOs was 15.3%. It is
also worth highlighting that this effective yield is "loss
adjusted" in that takes into account assumptions for future default
and recoveries.
Reporting and Transparency
We are committed to regular, clear and transparent
communications with shareholders and expect MPLF to be a market
leader in the following areas:
Financial Reporting
Although MPLF is only required to disclose financial statements
on a semi-annual basis, the Company discloses quarterly financial
statements.
Portfolio Transparency
In addition to the summary statistics in the Monthly Reports
posted to the website each month, the Quarterly Update Letter
provides look-through detail regarding MPLF's exposure to each
underlying loan within the Company's portfolio (see Appendix
A).
Investor Communications
Beginning with the quarter ending 30 June 2018 (which will be
the first full quarter for MPLF as a public company), we intend to
hold quarterly conference calls to discuss the Company's financial
results for each quarter.
MPLF UPDATE
Performance
From 13 February 2018 through 30 April 2018, the Company's NAV
total return was -0.19%. For this same period, the CSLLI, the ICE
BAML HYI and the S&P 500 registered total returns of 1.06%,
0.68% and -0.30% respectively.(5)
Total Returns(5)
Cumulative
Feb-18 Mar-18 Apr-18 Since IPO
---------------------------- ------ ------- ------ ----------
MPLF NAV per Share 0.02% (1.14%) 0.90% (0.19%)
---------------------------- ------ ------- ------ ----------
Credit Suisse Leveraged
Loan Index ("CSLLI") 0.25% 0.32% 0.49% 1.06%
---------------------------- ------ ------- ------ ----------
ICE BofAML US High Yield
Index ("ICE BAML HYI") 0.63% (0.64%) 0.68% 0.68%
---------------------------- ------ ------- ------ ----------
Standard & Poor's 500 Index
("S&P 500") 2.18% (2.69%) 0.27% (0.30%)
---------------------------- ------ ------- ------ ----------
MPLF's total return for the period was below our long-term
expectations and was driven primarily by:
-- Market-wide loan spread compression
- From December 2017 through April 2018, the spread on the CSLLI
fell from LIBOR + 357 to LIBOR + 347 basis points and the weighted
average spread on MPLF's portfolio fell from LIBOR + 354 basis
points to LIBOR + 342 basis points (on a look-through basis to the
portfolio's underlying loans).(6)
- Spreads on CLO debt increased modestly during the period based
on significant supply of new CLOs and CLO equity discount rates
widened modestly as well.
-- The Funding Subsidiary was not yet meaningfully ramped and was "over-equitized"
- From December 2017 through April 2018 the Funding Subsidiary
increased its loan exposure from $36.9 million to $121.7 million.
As a reminder, the Funding Subsidiary has a revolving credit
facility (the Funding Subsidiary Facility) that provides 80%/20%
debt to equity financing for a diverse portfolio of loans. As of 30
April 2018, the Funding Subsidiary had $38.9 million of equity
capital supporting the $121.7 million of loans. Hence, since the
IPO, the Funding Subsidiary has been over-equitized and the net
interest income it generated was limited. Post 30 April 2018,
approximately $12.0 million of the over-equitized amount was
withdrawn in order to fund investments in other assets and the
Funding Subsidiary loan portfolio is currently essentially fully
ramped given its equity base. As a result, we expect the net
interest income and ROE generated by the Funding Subsidiary to be
higher from this point forward.
We highlight that the credit quality within the underlying loan
portfolio remained strong since year end. In addition, MPLF built 8
basis points of par value in its CLOs and CLO NAVs increased by
2.6% during the period. In addition, as of April 2018, MPLF has
only a nominal 6 basis points of exposure to defaulted borrowers
and 101 basis points of exposure to loans with market prices below
80 (as compared to the 1.73% for the market).(6)
(5) (6) (7) Please see the important disclosures and notes
beginning on page 19.
CLO NAV and Par Build(7) : Percentage Change fom 31 December
2017 through 30 April 2018
CLO Par Build
CLO CLO Size CLO NAV (% Change) (% Change)
================== ======== ================== =============
MP CLO III $401.5 1.3% (0.01%)
================== ======== ================== =============
MP CLO IV $398.7 0.8% (0.04%)
================== ======== ================== =============
MP CLO VI $397.0 1.4% 0.15%
================== ======== ================== =============
MP CLO VII $539.6 2.8% (0.07%)
================== ======== ================== =============
MP CLO VIII $502.7 2.6% 0.14%
================== ======== ================== =============
Marble Point
CLO X $501.5 1.6% 0.13%
================== ======== ================== =============
Marble Point
CLO XI $501.2 5.3% 0.13%
================== ======== ================== =============
Weighted Average 2.6% 0.08%
------------------ -------- ------------------ -------------
Source: Marble Point Analysis
NAV Attribution
As illustrated below, the Investment Income during the period
was roughly equal to the Unrealized Gains (Losses) during the
period.(8) The payment of dividends on 30 April 2018 and operating
expenses accounted for the decrease in NAV.
Supplemental NAV Attribution(8)
NAV per share, at admission (net of IPO
commissions and costs) $0.990
======================================== ========
Investment Income $0.025
======================================== ========
Expenses $(0.004)
======================================== ========
Realized Gains (Losses) $0.002
======================================== ========
Unrealized Gains (Losses) $(0.025)
======================================== ========
Dividends $(0.010)
NAV per share as at 30 April 2018 $0.978
Cash Distributions
The Marble Point CLOs make quarterly cash distributions during
January, April, July and October. In Q1 2018, MPLF's investment
portfolio made cash distributions (including amounts received from
called investments) of $5.3 million. In April 2018, MPLF's
investment portfolio made cash distributions of $5.8 million, or
$0.03 per weighted average common share.
While we are pleased with the portfolio's cash flow generation,
it was modestly lower than it otherwise would have been as a result
of an unusually wide differential between 1 month and 3 month
LIBOR. While CLO debt typically pays interest based on a spread
over 3 month LIBOR, most corporate loans enable the borrower to
elect to make payments off varying LIBOR bases including 1 month, 3
month and 6 month (with most borrowers typically electing for 3
month). With the historically wide differential between 1 month and
3 month LIBOR, an increasing number of corporate borrowers elected
to make payments off 1 month LIBOR. Many in the market, including
us, expect this unusually wide differential to revert to the mean
with the passage of time.
(7) (8) Please see the important disclosures and notes beginning
on page 19.
For perspective, the widest differential year-to-date in 2018
was approximately 47 basis points and as of the date of this
letter, the differential has decreased to approximately 29 basis
points.
Portfolio Summary
As of 30 April 2018, MPLF has exposure to 327 corporate
borrowers with the largest exposure to any one borrower of 1.2% and
average exposure of 0.4%. The average market value of the loans is
99.42%.
As illustrated below, MPLF has 66.4% exposure to CLO equity,
18.6% to the Funding Subsidiary, 7.5% to CLO debt, 5.3% to LAFs and
2.2% to fee participations and other assets. The weighted average
effective yield or all-in yield was 15.3% on CLO equity, 4.3% on
CLO debt and 11.1% on fee participations and other assets. For the
Funding Subsidiary and LAFs, income is not accrued using the
effective yield method but rather, recognized at the end of the
period. Taking to account all assets, MPLF targets a low to
mid-teens ROE over the long term.(2)
Portfolio Holdings(9) ($ Millions) as at 30 April 2018
% Owned
Equity by Marble % of Reinvestment
Tranche Moody's Point Fair Investment Effective Non-Call Period End
CLO CLO Size Size Rating & Affiliates Value(9) Portfolio Yield(10) Date Date
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO III $401.5 $55.1 NR 71.2% $16.7 8.0% 16.2% 20-Oct-19 20-Oct-22
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO IV $398.7 $48.4 NR 5.0% $1.0 0.5% 11.4% 25-Jul-19 14-Jul-21
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO VI $397.0 $40.8 NR 50.6% $10.9 5.2% 18.4% 15-Jan-17 15-Jan-19
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO VII $539.6 $45.5 NR 61.2% $17.8 8.5% 26.1% 18-Apr-17 18-Apr-19
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO VIII $502.7 $50.0 NR 51.7% $18.0 8.6% 10.7% 28-Oct-17 28-Oct-19
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
Marble Point
CLO
X $501.5 $50.0 NR 86.0% $30.0 14.4% 11.1% 15-Apr-20 17-Oct-22
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
Marble Point
CLO
XI $501.2 $48.5 NR 59.8% $22.4 10.7% 15.9% 18-Jan-20 18-Jan-23
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
Marble Point
CLO
XII $500.0 $48.7 NR 59.5% $22.1 10.6% 14.4% 22-May-20 16-Jul-23
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
Total Marble
Point
CLO Equity $138.9 66.4% 15.3%
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
Debt All-In
Tranche Yield(10)
Size
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO IV $398.7 $260.5 Aaa 5.0% $11.1 5.3% 3.6% 25-Jul-19 14-Jul-21
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO IV $398.7 $42.0 Aa2 5.0% $1.8 0.9% 4.2% 25-Jul-19 14-Jul-21
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO IV $398.7 $19.4 A2 5.0% $0.8 0.4% 4.8% 25-Jul-19 14-Jul-21
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO IV $398.7 $24.6 Baa3 5.0% $1.1 0.5% 6.0% 25-Jul-19 14-Jul-21
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO IV $398.7 $24.0 Ba3 5.0% $1.0 0.5% 9.4% 25-Jul-19 14-Jul-21
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
Total Marble
Point
CLO Debt $15.8 7.5% 4.3%
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
Marble Point CLO Fee Participations
& Other Assets $4.6 2.2% 11.1%
========================================================= ========= =========== ========== ========= ============
NAV of
Funding
Subsidiary $38.9 18.6% N/A
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
Marble Point
LAF
Equity $11.0 5.3% N/A
============= ======== ======== ======= ============= ========= =========== ========== ========= ============
Total
Investment
Portfolio (*() Numbers may not
(*() $209.1 100.0% foot due to rounding
(2) (9) (10) Please see the important disclosures and notes
beginning on page 19.
As of 30 April 2018, compared to their average quarterly vintage
cohorts, Marble Point's CLOs have 1) a 7 basis points higher
weighted average market price (Marble Point: 98.98%; Vintage
Cohorts: 98.91%, 2) 72 basis points lower percentage of loans
marked below 80 (Marble Point: 1.01%; Vintage Cohorts: 1.73%, and
3) a more favorable weighted average rating factor ("WARF") of 56
points (Marble Point: 2761; Vintage Cohorts: 2818).(6)(11)
Investment Activity and Pipeline
We were active post-IPO in terms of deploying the IPO proceeds
raised as well as refinancing, resetting and executing "call and
roll" transactions for the existing CLOs.
Ramp Up of Loans in the Funding Subsidiary
As noted earlier, from 31 December 2017 through 30 April 2018,
the amount of loans owned by the Funding Subsidiary increased from
$36.9 million to $121.7 million and the Funding Subsidiary is
essentially fully ramped based on the current equity capital base
as of the date of this letter.
MP CLO VI Call and Roll into Marble Point CLO XII
On 10 April 2018, a "call and roll" transaction was priced in
which MP CLO VI was called and a significant portion of its assets
were rolled into a new CLO, Marble Point CLO XII. This transaction
reduced the weighted average cost of debt ("WACD") by 19 basis
points as Marble Point CLO XII has a WACD of LIBOR + 153 basis
points as compared to MP CLO VI's WACD of LIBOR + 172 basis
points.(12) In addition, the transaction resulted in an effective
extension of the remaining reinvestment period by 4.5 years, as
Marble Point CLO XII has a new five year reinvestment period, along
with a two year non-call period and 13 year maturity.
MPLF invested $22.1 million in Marble Point CLO XII, $11.1
million of which represented new incremental capital deployed and
$11.0 million represented cash that was received or expected to be
received from the call of MP CLO VI. The estimated effective yield
on the investment in Marble Point CLO XII is 14.4%.(12)
J.P. Morgan Securities LLC acted as placement agent on Marble
Point CLO XII, which closed on 22 May 2018.
MP CLO VIII Refinancing
On 30 April 2018, the refinancing of MP CLO VIII was priced.
This refinancing transaction lowered the WACD by 68 basis points
(from LIBOR + 208 to LIBOR + 140 basis points).(12) In addition,
certain Collateral Quality Tests in the CLO were also restated
and/or extended, which provides additional investment flexibility
with respect to the underlying loan portfolio.
Morgan Stanley & Co. LLC acted as placement agent on the
refinancing of MP CLO VIII, which closed on 11 May 2018. As a
result of this refinancing transaction, the future cash flows to
the Company are expected to be higher and the effective yield
increased from 10.7% to 17.9%.(12)
By reducing the WACD on certain CLOs via the call and roll and
refinancing transactions summarized above, both of these
transactions contributed toward mitigating the loan spread
compression that the market is experiencing.(12)
(2) (6) (11) (12) Please see the important disclosures and notes
beginning on page 19.
Funded LAF for Marble Point CLO XIV
On 29 March 2018, MPLF funded $10 million into a newly formed
LAF to accumulate loans in advance of a new issue CLO. As of the
date of this letter, MPLF has $21 million funded into the LAF. We
are seeking to convert this LAF into a new CLO later this year.
With CLO debt pricing at post-crisis lows, we believe that
locking in long-term, non mark-to-market financing at these
attractive levels provides shareholders with an attractive return
profile today and the opportunity to benefit from loan price
volatility in the future.
MARKET UPDATE
During the first quarter, U.S. GDP grew at a 2.2% annual rate.
As of the date of this letter, there are signs that the economy has
gathered momentum post-Q1 and the consensus full year GDP forecast
is approximately 2.8% according to the Bloomberg Consensus
Forecasts Summary as of 5 June 2018. This compares to GDP of 2.3%
in 2017.
The May 2018 jobs report illustrated a tightening labor market
with U.S. unemployment falling to an 18 year low of 3.8%. J.P.
Morgan is forecasting three additional rate hikes during the
remainder of 2018 and four in 2019 and LIBOR typically increases
along with the general level of interest rates.(13) Increases in
LIBOR are generally beneficial to CLO equity cash flows, all else
equal.
Loan Market
The theme in the loan market continues to be that of significant
demand for floating rate assets (including loans and CLO debt). In
fact, loan refinancing and repricing volume during Q1 2018 was the
second highest on record with $143 billion of activity, according
to S&P Capital IQ. This led to a reduction in spreads during
the quarter of five basis points.
The CSLLI continued its run of solid performance year to date
through 30 April 2018, finishing the period with an average price
of 98.23, as compared to the 97.63 price as of 31 December 2017.
Incorporating interest income, the total return on the CSLLI is
2.08% year to date.
As noted earlier, the loan market found itself largely insulated
from the volatility that other risk asset classes experienced
during Q1 2018. As economic growth has remained healthy and the
Fed's focus has shifted from highly accommodative to the gradual
normalization of interest rates, many investors are turning to
floating rate assets to protect against interest rate risk. Both
loans and CLO debt have been beneficiaries of this trend.
Loan market technicals remained strong during the first quarter,
resulting in the continued rise in loan prices and an even greater
percentage of the loan market trading above par. As of 30 April
2018, 74.5% of the loan market was trading at or above par as
compared to 62.6% as of 31 December 2017.(14)
In addition to the strong CLO issuance described below, retail
loan funds experienced a net inflow of $4.5 billion through 30
April 2018, according to J.P. Morgan. This compares to inflows of
$9.4 billion in all of 2017. (15)
(13) (14) (15) Please see the important disclosures and notes
beginning on page 19.
The current market environment in which the supply and demand
technicals favor the borrower has resulted in decreasing loan
spreads and more flexible terms incorporated into credit
agreements, rendering a disciplined and time-tested credit process
paramount. As noted earlier, we seek to invest in loans with a
meaningful margin of safety as measured by our assessment of a
credit's loan-to-value ratio.
From a fundamental perspective, while leverage multiples crept
up during the quarter, interest coverage remained stable.
As corporate borrowers have taken advantage of the strong demand
for loans and more flexible terms to refinance their existing debt,
they have also been able to extend loan maturity dates. As a
result, only 5.7% of the loans in MPLF's underlying loan portfolio
mature prior to 2021.
We believe that it is unlikely that the default rate on loans
will increase materially over the near to medium term given 1) this
low percentage of loans with maturities before 2021, 2) the fact
that approximately three quarters of loan issuance is
covenant-lite, according to S&P Capital IQ (and therefore, we
expect few technical defaults) and 3) the U.S. economy and
corporate fundamentals remain generally healthy combine to make it
less likely, in our opinion, that the default rate will increase
materially over the short to medium term.
The consensus view among most market participants is similar.
For example, according to an S&P Capital IQ survey, 64% of loan
managers surveyed believe that 2020 is the next time defaults will
exceed the historical average of approximately 3.0%.(16)
Furthermore, J.P. Morgan's default forecasts for 2018 and 2019 are
2.5% and 2.0%, respectively.(13)
However, while we expect defaults to remain below historical
averages, this does not mean that loan prices will not experience
periods of volatility - and we believe that the long-term value of
CLO equity benefits from periods of loan market volatility.
(13) (16) Please see the important disclosures and notes
beginning on page 19.
The structure of CLOs (with their long-term, locked in place,
non mark-to-market financing) allows the CLO collateral manager to
take advantage of periods of market stress by reinvesting principal
proceeds from loan repayments and sales into loans at lower prices
and wider spreads.
CLO Market
While CLO debt spreads widened modestly during the latter part
of Q1 (driven primarily by an increase in CLO supply), the cost of
financing for new issue CLOs (as well as for resets and
refinancings) remains near the CLO 2.0 tights.
Year to date through April, 75 U.S. CLOs were issued,
representing $43.0 billion of volume (excluding issuances related
to refinancings and resets) according to S&P Capital IQ. Reset
and refinancing activity has continued to be robust with $41.6
billion of resets and $9.6 billion of refinancings according to
S&P LCD.
As of April 2018, U.S. CLOs outstanding totaled approximately
$526 billion through 1,200 CLOs according to Thomson Reuters.
* * * * *
We thank you for your continued confidence and trust in us.
Please do not hesitate to reach out with any questions or to
discuss the market.
Sincerely,
Thomas Shandell
Chief Executive Officer & Chief Investment Officer
Marble Point Credit Management LLC
11 June 2018
Summary of portfolio characteristIcs
The information presented below is on a look-through basis to
the CLO equity, Funding Subsidiary and LAFs held by MPLF as of 31
March 2018 (except as otherwise noted) and reflects the aggregate
underlying exposure of the Company based on the portfolios of those
investments. The data is estimated and unaudited and is derived
from CLO trustee reports received by MPLF relating to March 2018
and from custody statements and/or other information, or other
third party sources.
Summary of Portfolio Investments (as at 31 March 2018)(17)
Marble Point CLO Equity 57.5%
------------------------------------- -------
NAV of Funding Subsidiary 28.0%
------------------------------------- -------
Marble Point CLO Debt 7.6%
------------------------------------- -------
Marble Point LAF Equity 4.8%
------------------------------------- -------
Marble Point CLO Fee Participations 2.2%
------------------------------------- -------
100.0%
------------------------------------- -------
Summary of Underlying Loan Portfolio (as at 31 March
2018)(18)(19)
1Q18 4Q17
====================================== ========== ==========
Unique Underlying Borrowers 327 347
-------------------------------------- ---------- ----------
Largest Individual Borrower Exposure 1.1% 1.2%
-------------------------------------- ---------- ----------
Average Borrower Exposure 0.4% 0.3%
-------------------------------------- ---------- ----------
Currency: USD Exposure 100.0% 100.0%
-------------------------------------- ---------- ----------
Exposure to First Lien Loans 96.1% 96.6%
-------------------------------------- ---------- ----------
Exposure to Defaulted Borrowers 0.1% NA
-------------------------------------- ---------- ----------
Average Junior OC Cushion 4.80% 4.66%
-------------------------------------- ---------- ----------
Average Market Value of Collateral 99.44% 99.37%
-------------------------------------- ---------- ----------
Average Stated Spread 3.47% 3.55%
-------------------------------------- ---------- ----------
Weighted Average Rating B1/B2 B1/B2
-------------------------------------- ---------- ----------
Weighted Average Maturity 5.1 Years 5.2 Years
(17) (18) (19) Please see the important disclosures and notes
beginning on page 19.
The top ten underlying obligors on a look-through basis as of 31
March 31 2018 are provided below:
Top 10 Underlying Obligors(18)
Top 10 Borrowers % of Total
============================= ===========
TransDigm 1.1%
Numericable 1.1%
Asurion 1.0%
Advantage Sales & Marketing 1.0%
Alvogen Pharma US 1.0%
BJs Wholesale Club 0.9%
Global Tel Link 0.9%
Calpine 0.8%
Altice 0.8%
Save A Lot 0.8%
============================= ===========
Total 9.5%
-----------
The credit ratings distribution of the underlying obligors on a
look-through basis as of 31 March 2018 is provided on the
corresponding PDF file:
http://www.rns-pdf.londonstockexchange.com/rns/0769R_1-2018-6-12.pdf
Rating Distribution of Underlying Obligors(18)(19)
The top ten industries of the underlying obligors on a
look-through basis as of 31 March 2018 are provided below:
Top 10 Industries of Underlying Obligors(18)(20)
Top 10 Moody's Industries % of Total
==================================== ===========
Healthcare & Pharmaceuticals 14.7%
High Tech Industries 10.3%
Services: Business 9.3%
Retail 8.3%
Media: Broadcasting & Subscription 6.0%
Banking, Finance, Insurance
& Real Estate 5.2%
Chemicals, Plastics & Rubber 4.1%
Capital Equipment 3.7%
Hotel, Gaming & Leisure 3.7%
Telecommunications 3.5%
==================================== ===========
Total 68.9%
The maturity distribution of the underlying obligors on a
look-through basis as of 31 March 2018 is provided on the
corresponding PDF file:
http://www.rns-pdf.londonstockexchange.com/rns/0769R_1-2018-6-12.pdf
Maturity Distribution of Underlying Obligors(18)
(18) (19) (20) Please see the important disclosures and notes
beginning on page 19.
Appendix A: MPLF Lookthrough Exposures (as at 31 March
2018)(18)
Issuer Industry Exposure
TransDigm Aerospace & Defense 1.14%
======================================= ================================= =========
Media: Broadcasting &
Numericable Subscription 1.09%
======================================= ================================= =========
Asurion Services: Consumer 0.97%
======================================= ================================= =========
Advantage Sales & Marketing Services: Business 0.96%
======================================= ================================= =========
Alvogen Pharma US Inc Healthcare & Pharmaceuticals 0.95%
======================================= ================================= =========
BJs Wholesale Club Retail 0.93%
======================================= ================================= =========
Global Tel Link Telecommunications 0.90%
======================================= ================================= =========
Calpine Energy: Electricity 0.85%
======================================= ================================= =========
Media: Broadcasting &
Altice Subscription 0.84%
======================================= ================================= =========
Save A Lot Retail 0.83%
======================================= ================================= =========
Riverbed Technology High Tech Industries 0.83%
======================================= ================================= =========
Universal Services of America Services: Business 0.82%
======================================= ================================= =========
Midwest Physician Administrative
Services LLC Healthcare & Pharmaceuticals 0.82%
======================================= ================================= =========
Energy Transfer Equity Energy: Oil & Gas 0.81%
======================================= ================================= =========
National Veterinary Associates Healthcare & Pharmaceuticals 0.77%
======================================= ================================= =========
Kindred Healthcare Healthcare & Pharmaceuticals 0.77%
======================================= ================================= =========
Monitronics International Services: Consumer 0.75%
======================================= ================================= =========
Michaels Stores Retail 0.73%
======================================= ================================= =========
Albertsons Beverage, Food & Tobacco 0.73%
======================================= ================================= =========
Planet Fitness Hotel, Gaming & Leisure 0.72%
======================================= ================================= =========
Dell Inc High Tech Industries 0.71%
======================================= ================================= =========
Party City Retail 0.71%
======================================= ================================= =========
Harbor Freight Tools Retail 0.71%
======================================= ================================= =========
Emdeon Business Services Healthcare & Pharmaceuticals 0.71%
======================================= ================================= =========
MacDonald Dettwiler Assoc
Ltd Aerospace & Defense 0.70%
======================================= ================================= =========
Travelport Transportation: Consumer 0.68%
======================================= ================================= =========
Surgery Centers Holdings Healthcare & Pharmaceuticals 0.68%
======================================= ================================= =========
Mens Wearhouse Retail 0.68%
======================================= ================================= =========
Learning Care Group Services: Consumer 0.67%
======================================= ================================= =========
Kinetic Concepts Healthcare & Pharmaceuticals 0.66%
======================================= ================================= =========
Jo-Ann Stores Retail 0.66%
======================================= ================================= =========
Sabre Holdings Transportation: Consumer 0.65%
======================================= ================================= =========
Concentra Healthcare & Pharmaceuticals 0.65%
======================================= ================================= =========
US Renal Care Healthcare & Pharmaceuticals 0.64%
======================================= ================================= =========
PetSmart Retail 0.64%
======================================= ================================= =========
Weight Watchers International Services: Consumer 0.64%
======================================= ================================= =========
SS&C Technologies High Tech Industries 0.63%
======================================= ================================= =========
Media: Broadcasting &
ION Media Networks Subscription 0.61%
======================================= ================================= =========
Banking, Finance, Insurance
Citco & Real Estate 0.61%
======================================= ================================= =========
Chemicals, Plastics &
PLZ Aeroscience Rubber 0.59%
======================================= ================================= =========
First Data Services: Business 0.59%
======================================= ================================= =========
Herbalife Intl Inc Beverage, Food & Tobacco 0.59%
======================================= ================================= =========
Acosta Sales & Marketing Services: Business 0.58%
======================================= ================================= =========
Oxbow Carbon Metals & Mining 0.58%
======================================= ================================= =========
Telesat Telecommunications 0.57%
======================================= ================================= =========
Hyland Software High Tech Industries 0.56%
======================================= ================================= =========
Blackboard High Tech Industries 0.55%
======================================= ================================= =========
Zotec Partners Healthcare & Pharmaceuticals 0.55%
======================================= ================================= =========
Media: Broadcasting &
Sinclair Television Group Subscription 0.55%
======================================= ================================= =========
McAfee LLC High Tech Industries 0.54%
======================================= ================================= =========
Cole-Parmer Capital Equipment 0.54%
======================================= ================================= =========
Dragon Merger Sub LLC Capital Equipment 0.54%
======================================= ================================= =========
Guggenheim Partners Investment Banking, Finance, Insurance
Management Hol. & Real Estate 0.54%
======================================= ================================= =========
Amneal Pharmaceuticals Healthcare & Pharmaceuticals 0.54%
======================================= ================================= =========
Graftech Intl Ltd Metals & Mining 0.53%
======================================= ================================= =========
Healthport Services: Business 0.52%
======================================= ================================= =========
Burlington Stores Retail 0.52%
======================================= ================================= =========
MCS AMS Sub-Holdings Services: Consumer 0.52%
======================================= ================================= =========
AOT Bedding Super Holdings Consumer Goods: Durable 0.51%
======================================= ================================= =========
MWI Hldgs Inc Capital Equipment 0.51%
======================================= ================================= =========
Issuer Industry Exposure
======================================= ================================= =========
Securus Technologies Telecommunications 0.51%
======================================= ================================= =========
Air Methods Corp Transportation: Consumer 0.50%
======================================= ================================= =========
Smart & Final Stores Retail 0.50%
======================================= ================================= =========
Polyconcept Consumer Goods: Non-Durable 0.50%
======================================= ================================= =========
American Airlines Transportation: Consumer 0.49%
======================================= ================================= =========
Oasis Outsourcing Services: Business 0.49%
======================================= ================================= =========
One Call Medical Inc (Opal
Acquisition Inc) Healthcare & Pharmaceuticals 0.48%
======================================= ================================= =========
Mallinckrodt Healthcare & Pharmaceuticals 0.48%
======================================= ================================= =========
TravelClick Services: Business 0.48%
======================================= ================================= =========
Epicor Software High Tech Industries 0.48%
======================================= ================================= =========
PetVet Care Centers Healthcare & Pharmaceuticals 0.47%
======================================= ================================= =========
ValueOptions Healthcare & Pharmaceuticals 0.47%
======================================= ================================= =========
Chemicals, Plastics &
Ineos Rubber 0.47%
======================================= ================================= =========
Compuware High Tech Industries 0.46%
======================================= ================================= =========
Brickman Group Services: Business 0.46%
======================================= ================================= =========
Life Time Fitness Hotel, Gaming & Leisure 0.46%
======================================= ================================= =========
24 Hour Fitness Hotel, Gaming & Leisure 0.46%
======================================= ================================= =========
Liberty Cablevision of Puerto Media: Broadcasting &
Rico Subscription 0.45%
======================================= ================================= =========
Information Resources Services: Business 0.45%
======================================= ================================= =========
US Anesthesia Partners Inc Healthcare & Pharmaceuticals 0.44%
======================================= ================================= =========
TransUnion Services: Business 0.44%
======================================= ================================= =========
Media: Broadcasting &
Hemisphere Media Group Subscription 0.44%
======================================= ================================= =========
Pharmaceutical Product Development Healthcare & Pharmaceuticals 0.44%
======================================= ================================= =========
SunSource Holdings Capital Equipment 0.43%
======================================= ================================= =========
Navistar International Automotive 0.43%
======================================= ================================= =========
Presidio High Tech Industries 0.42%
======================================= ================================= =========
Banking, Finance, Insurance
First Eagle Investment Management & Real Estate 0.41%
======================================= ================================= =========
Banking, Finance, Insurance
National Financial Partners & Real Estate 0.41%
======================================= ================================= =========
Superior Vision Holdings
Inc Healthcare & Pharmaceuticals 0.40%
======================================= ================================= =========
1-800 Contacts Inc Retail 0.39%
======================================= ================================= =========
Media: Broadcasting &
Charter Communications Subscription 0.39%
======================================= ================================= =========
Wilsonart Construction & Building 0.38%
======================================= ================================= =========
Media: Broadcasting &
Liberty Global Subscription 0.38%
======================================= ================================= =========
Solera Holdings High Tech Industries 0.38%
======================================= ================================= =========
LA Fitness Hotel, Gaming & Leisure 0.38%
======================================= ================================= =========
CPG International Construction & Building 0.37%
======================================= ================================= =========
Mister Car Wash Retail 0.37%
======================================= ================================= =========
Media: Broadcasting &
UPC Holding BV Subscription 0.37%
======================================= ================================= =========
La Quinta Hotel, Gaming & Leisure 0.36%
======================================= ================================= =========
PowerTeam Construction & Building 0.36%
======================================= ================================= =========
Misys High Tech Industries 0.36%
======================================= ================================= =========
KEMET Corp High Tech Industries 0.36%
======================================= ================================= =========
Doosan Infracore Bobcat Holdings Capital Equipment 0.36%
======================================= ================================= =========
Banking, Finance, Insurance
Compass Diversified & Real Estate 0.36%
======================================= ================================= =========
Shearers Foods Beverage, Food & Tobacco 0.35%
======================================= ================================= =========
Chemicals, Plastics &
Unifrax Rubber 0.35%
======================================= ================================= =========
Rackspace Hosting Inc High Tech Industries 0.35%
======================================= ================================= =========
American Tire Distributors Wholesale 0.35%
======================================= ================================= =========
Aristocrat Leisure Hotel, Gaming & Leisure 0.34%
======================================= ================================= =========
SI Organization Aerospace & Defense 0.34%
======================================= ================================= =========
Banking, Finance, Insurance
DTZ Holdings Plc & Real Estate 0.34%
======================================= ================================= =========
Equian LLC Healthcare & Pharmaceuticals 0.33%
======================================= ================================= =========
On Assignment Services: Business 0.33%
======================================= ================================= =========
Valeant Pharmaceuticals International Healthcare & Pharmaceuticals 0.32%
======================================= ================================= =========
Hearthside Group Holdings Beverage, Food & Tobacco 0.32%
======================================= ================================= =========
Idera Services: Business 0.31%
======================================= ================================= =========
Royalty Pharma Healthcare & Pharmaceuticals 0.31%
======================================= ================================= =========
TierPoint Telecommunications 0.31%
======================================= ================================= =========
Envision Healthcare Holdings Healthcare & Pharmaceuticals 0.31%
======================================= ================================= =========
Banking, Finance, Insurance
TaxACT Holdings & Real Estate 0.31%
======================================= ================================= =========
Station Casinos Hotel, Gaming & Leisure 0.31%
======================================= ================================= =========
Containers, Packaging
Anchor Glass & Glass 0.31%
======================================= ================================= =========
iPayment Services: Business 0.31%
======================================= ================================= =========
Containers, Packaging
Transilwrap Company & Glass 0.31%
======================================= ================================= =========
ExamWorks Group Inc Services: Business 0.30%
======================================= ================================= =========
Issuer Industry Exposure
======================================= ================================= =========
Omnitracs High Tech Industries 0.30%
======================================= ================================= =========
CenturyLink Telecommunications 0.30%
======================================= ================================= =========
Ring Container Technologies Containers, Packaging
Group & Glass 0.30%
======================================= ================================= =========
Banking, Finance, Insurance
Capital Automotive & Real Estate 0.29%
======================================= ================================= =========
Chemicals, Plastics &
Orion Engineered Carbons Rubber 0.29%
======================================= ================================= =========
Chemicals, Plastics &
Tronox Rubber 0.29%
======================================= ================================= =========
Lumileds Hldg BV Automotive 0.29%
======================================= ================================= =========
Flexera Software High Tech Industries 0.29%
======================================= ================================= =========
Houston Fuel Oil Terminal
Company Energy: Oil & Gas 0.28%
======================================= ================================= =========
SRAM Corp Consumer Goods: Non-Durable 0.28%
======================================= ================================= =========
NRG Energy Utilities: Electric 0.28%
======================================= ================================= =========
Werner FinCo LP Capital Equipment 0.28%
======================================= ================================= =========
Banking, Finance, Insurance
AssuredPartners & Real Estate 0.28%
======================================= ================================= =========
Goodpack Transportation: Cargo 0.28%
======================================= ================================= =========
Quorum Health Corp Healthcare & Pharmaceuticals 0.28%
======================================= ================================= =========
Mannington Mills Construction & Building 0.28%
======================================= ================================= =========
EVERTEC Group Services: Business 0.28%
======================================= ================================= =========
Containers, Packaging
Tank Holdings & Glass 0.28%
======================================= ================================= =========
Infoblox Inc High Tech Industries 0.27%
======================================= ================================= =========
Chemicals, Plastics &
Plaskolite Rubber 0.27%
======================================= ================================= =========
Wesco Aircraft Hardware Aerospace & Defense 0.27%
======================================= ================================= =========
Paradigm Precision Group Aerospace & Defense 0.27%
======================================= ================================= =========
MoneyGram International Services: Business 0.27%
======================================= ================================= =========
Akorn Healthcare & Pharmaceuticals 0.26%
======================================= ================================= =========
Leslies Poolmart Retail 0.26%
======================================= ================================= =========
Augusta Sportswear Group
Inc Consumer Goods: Durable 0.26%
======================================= ================================= =========
Electrical Components International High Tech Industries 0.26%
======================================= ================================= =========
Frontier Communications Telecommunications 0.26%
======================================= ================================= =========
Tensar Construction & Building 0.26%
======================================= ================================= =========
Containers, Packaging
Prolamina & Glass 0.26%
======================================= ================================= =========
Cypress Performance Construction & Building 0.26%
======================================= ================================= =========
Atlantic Power LP Energy: Electricity 0.26%
======================================= ================================= =========
Chemicals, Plastics &
PPC Industries Rubber 0.25%
======================================= ================================= =========
Media: Broadcasting &
RCN Cable Subscription 0.25%
======================================= ================================= =========
Lucid Energy Group II Energy: Oil & Gas 0.25%
======================================= ================================= =========
Containers, Packaging
Ranpak & Glass 0.24%
======================================= ================================= =========
Chemicals, Plastics &
KMG Chemicals Inc Rubber 0.24%
======================================= ================================= =========
NAVEX Global Services: Business 0.24%
======================================= ================================= =========
Tecomet Healthcare & Pharmaceuticals 0.23%
======================================= ================================= =========
TPF II Power Utilities: Electric 0.23%
======================================= ================================= =========
CeramTec Capital Equipment 0.23%
======================================= ================================= =========
Dealer Tire Wholesale 0.23%
======================================= ================================= =========
Vertiv Co High Tech Industries 0.22%
======================================= ================================= =========
Emerald Expositions Holdings Media: Diversified & Production 0.22%
======================================= ================================= =========
AMG Advanced Metallurgical
Group NV Metals & Mining 0.22%
======================================= ================================= =========
Linxens High Tech Industries 0.21%
======================================= ================================= =========
Constellis Group Inc Aerospace & Defense 0.21%
======================================= ================================= =========
Banking, Finance, Insurance
Broadstreet Partners Inc & Real Estate 0.21%
======================================= ================================= =========
Media: Broadcasting &
Nexstar Broadcasting Subscription 0.21%
======================================= ================================= =========
Media: Advertising, Printing
Houghton Mifflin Harcourt & Publishing 0.21%
======================================= ================================= =========
Libbey Glass Consumer Goods: Durable 0.21%
======================================= ================================= =========
Chemicals, Plastics &
Ennis-Flint Rubber 0.20%
======================================= ================================= =========
Consolidated Precision Products Aerospace & Defense 0.20%
======================================= ================================= =========
McJunkin Red Man Energy: Oil & Gas 0.20%
======================================= ================================= =========
Osum Production Energy: Oil & Gas 0.20%
======================================= ================================= =========
Sterigenics-Nordion Healthcare & Pharmaceuticals 0.20%
======================================= ================================= =========
Inmar Services: Business 0.20%
======================================= ================================= =========
Informatica High Tech Industries 0.20%
======================================= ================================= =========
Varsity Brands Consumer Goods: Non-Durable 0.19%
======================================= ================================= =========
Greatbatch Healthcare & Pharmaceuticals 0.19%
======================================= ================================= =========
Delta Airlines Transportation: Consumer 0.19%
======================================= ================================= =========
Chemicals, Plastics &
Israel Chemicals Ltd Rubber 0.19%
======================================= ================================= =========
CCC Information Services High Tech Industries 0.19%
======================================= ================================= =========
Banking, Finance, Insurance
NXT Capital & Real Estate 0.18%
======================================= ================================= =========
Chemicals, Plastics &
DuBois Chemicals Rubber 0.18%
======================================= ================================= =========
Issuer Industry Exposure
======================================= ================================= =========
Arch Coal Metals & Mining 0.18%
======================================= ================================= =========
Stratose Healthcare & Pharmaceuticals 0.18%
======================================= ================================= =========
Dealogic High Tech Industries 0.18%
======================================= ================================= =========
Community Health Systems Healthcare & Pharmaceuticals 0.18%
======================================= ================================= =========
PODS Enterprises LLC Transportation: Cargo 0.17%
======================================= ================================= =========
Pike Corp Construction & Building 0.17%
======================================= ================================= =========
PetCo Animal Supplies Retail 0.17%
======================================= ================================= =========
Summit Midstream Partners
Holdings LLC Energy: Oil & Gas 0.17%
======================================= ================================= =========
Argon Med Devices Inc Healthcare & Pharmaceuticals 0.17%
======================================= ================================= =========
Media: Broadcasting &
Virgin Media Investment Holdings Subscription 0.17%
======================================= ================================= =========
Medallion Midland Acquisition Energy: Oil & Gas 0.17%
======================================= ================================= =========
Chemicals, Plastics &
Archroma Rubber 0.17%
======================================= ================================= =========
Osmose Holdings Construction & Building 0.17%
======================================= ================================= =========
Greenway Medical Technologies Healthcare & Pharmaceuticals 0.16%
======================================= ================================= =========
Genesys High Tech Industries 0.16%
======================================= ================================= =========
SolarWinds Inc High Tech Industries 0.16%
======================================= ================================= =========
SBP Holdings Wholesale 0.15%
======================================= ================================= =========
TRC Cos Inc Environmental Industries 0.15%
======================================= ================================= =========
Bass Pro Group Retail 0.15%
======================================= ================================= =========
Banking, Finance, Insurance
Victory Capital Management & Real Estate 0.15%
======================================= ================================= =========
US Foods Beverage, Food & Tobacco 0.15%
======================================= ================================= =========
HD Supply Construction & Building 0.15%
======================================= ================================= =========
Scientific Games Hotel, Gaming & Leisure 0.15%
======================================= ================================= =========
Media: Broadcasting &
Mediacom Broadband Subscription 0.15%
======================================= ================================= =========
Certara Holdco Inc Healthcare & Pharmaceuticals 0.15%
======================================= ================================= =========
Banking, Finance, Insurance
Greenhill Co Inc & Real Estate 0.15%
======================================= ================================= =========
Expera Specialty Solutions
LLC Forest Products & Paper 0.15%
======================================= ================================= =========
Consolidated Communications Telecommunications 0.15%
======================================= ================================= =========
Quikrete Holdings Inc Construction & Building 0.15%
======================================= ================================= =========
Chemicals, Plastics &
Sonneborn Rubber 0.15%
======================================= ================================= =========
Grosvenor Capital Management Banking, Finance, Insurance
Holdings & Real Estate 0.15%
======================================= ================================= =========
Ardent Legacy Acquisition Healthcare & Pharmaceuticals 0.15%
======================================= ================================= =========
Banking, Finance, Insurance
Liquidnet Holdings & Real Estate 0.14%
======================================= ================================= =========
Gates Global Capital Equipment 0.14%
======================================= ================================= =========
American Rock Salt Metals & Mining 0.14%
======================================= ================================= =========
SRS Distribution Construction & Building 0.14%
======================================= ================================= =========
M/A-COM Technology High Tech Industries 0.14%
======================================= ================================= =========
Global Healthcare Exchange Services: Business 0.14%
======================================= ================================= =========
United Site Services Services: Business 0.14%
======================================= ================================= =========
TKC Holdings Inc Services: Business 0.13%
======================================= ================================= =========
Media: Advertising, Printing
McGraw-Hill Global Education & Publishing 0.13%
======================================= ================================= =========
ServiceMaster Services: Consumer 0.13%
======================================= ================================= =========
CityCenter Holdings Hotel, Gaming & Leisure 0.13%
======================================= ================================= =========
Windstream Telecommunications 0.13%
======================================= ================================= =========
Infiltrator Systems Construction & Building 0.13%
======================================= ================================= =========
Minimax Capital Equipment 0.13%
======================================= ================================= =========
Overseas Shipholding Transportation: Cargo 0.12%
======================================= ================================= =========
TTM Technologies High Tech Industries 0.12%
======================================= ================================= =========
Avolon TLB Borrower 1 Luxembourg Banking, Finance, Insurance
Sa rl & Real Estate 0.12%
======================================= ================================= =========
Excelitas Technologies Capital Equipment 0.12%
======================================= ================================= =========
Containers, Packaging
Plastipak Hldgs Inc & Glass 0.12%
======================================= ================================= =========
Gartner Inc High Tech Industries 0.12%
======================================= ================================= =========
Banking, Finance, Insurance
United States Infrastructure & Real Estate 0.12%
======================================= ================================= =========
Post Holdings Inc Beverage, Food & Tobacco 0.12%
======================================= ================================= =========
Ascend Learning LLC Services: Business 0.11%
======================================= ================================= =========
Autodata Inc High Tech Industries 0.11%
======================================= ================================= =========
Sodelho SA Capital Equipment 0.11%
======================================= ================================= =========
Arbys Restaurant Group Beverage, Food & Tobacco 0.11%
======================================= ================================= =========
Tempo Acquisition LLC Services: Business 0.11%
======================================= ================================= =========
PAE Holding Corp Aerospace & Defense 0.11%
======================================= ================================= =========
Chemicals, Plastics &
Zep Rubber 0.11%
======================================= ================================= =========
Air Canada Transportation: Consumer 0.11%
======================================= ================================= =========
MedRisk Healthcare & Pharmaceuticals 0.11%
======================================= ================================= =========
Containers, Packaging
Crown Holdings & Glass 0.11%
======================================= ================================= =========
Media: Broadcasting &
Cable One Inc Subscription 0.11%
======================================= ================================= =========
Issuer Industry Exposure
======================================= ================================= =========
Kronos Worldwide High Tech Industries 0.10%
======================================= ================================= =========
MaxLinear Inc High Tech Industries 0.10%
======================================= ================================= =========
Ziggo Telecommunications 0.10%
======================================= ================================= =========
Banking, Finance, Insurance
Edelman Financial & Real Estate 0.10%
======================================= ================================= =========
IPC Systems Telecommunications 0.10%
======================================= ================================= =========
Wencor Group Aerospace & Defense 0.10%
======================================= ================================= =========
Rocket Software High Tech Industries 0.10%
======================================= ================================= =========
MultiPlan Healthcare & Pharmaceuticals 0.10%
======================================= ================================= =========
Gopher Resource Environmental Industries 0.09%
======================================= ================================= =========
Banking, Finance, Insurance
Alliant Holdings & Real Estate 0.09%
======================================= ================================= =========
Wastequip Environmental Industries 0.09%
======================================= ================================= =========
Penn Engineering & Manufacturing Capital Equipment 0.09%
======================================= ================================= =========
Chemicals, Plastics &
Univar Inc. Rubber 0.09%
======================================= ================================= =========
TMS International Metals & Mining 0.09%
======================================= ================================= =========
Chemicals, Plastics &
Minerals Technologies Rubber 0.09%
======================================= ================================= =========
Prometric Services: Business 0.09%
======================================= ================================= =========
Barracuda Networks Inc High Tech Industries 0.09%
======================================= ================================= =========
Banking, Finance, Insurance
HUB International & Real Estate 0.09%
======================================= ================================= =========
Media: Advertising, Printing
Camelot UK Holdco Ltd & Publishing 0.09%
======================================= ================================= =========
Milacron Capital Equipment 0.09%
======================================= ================================= =========
Catalina Marketing Services: Business 0.09%
======================================= ================================= =========
Banking, Finance, Insurance
Acrisure & Real Estate 0.08%
======================================= ================================= =========
Vantiv Services: Business 0.08%
======================================= ================================= =========
Renaissance Learning High Tech Industries 0.08%
======================================= ================================= =========
Southwire Capital Equipment 0.08%
======================================= ================================= =========
Chemicals, Plastics &
Drew Marine Rubber 0.08%
======================================= ================================= =========
Hostess Brands Beverage, Food & Tobacco 0.08%
======================================= ================================= =========
United Pacific Retail 0.08%
======================================= ================================= =========
Extended Stay America Hotel, Gaming & Leisure 0.08%
======================================= ================================= =========
Applied Systems High Tech Industries 0.08%
======================================= ================================= =========
Containers, Packaging
US TelePacific & Glass 0.07%
======================================= ================================= =========
Springer Science & Business Media: Advertising, Printing
Media & Publishing 0.07%
======================================= ================================= =========
Ability Network Healthcare & Pharmaceuticals 0.07%
======================================= ================================= =========
Harbortouch Payments LLC Services: Business 0.07%
======================================= ================================= =========
Paysafe Group Services: Business 0.07%
======================================= ================================= =========
Lumos Networks Telecommunications 0.07%
======================================= ================================= =========
Banking, Finance, Insurance
Fortress Invt Group LLC & Real Estate 0.07%
======================================= ================================= =========
Henry Company Construction & Building 0.07%
======================================= ================================= =========
CCM Merger Hotel, Gaming & Leisure 0.07%
======================================= ================================= =========
Hanson Building Products Construction & Building 0.07%
======================================= ================================= =========
CH Hold Corp Automotive 0.07%
======================================= ================================= =========
Util One Source LP Construction & Building 0.07%
======================================= ================================= =========
Datatel High Tech Industries 0.07%
======================================= ================================= =========
Harvey Gulf International
Marine Transportation: Cargo 0.06%
======================================= ================================= =========
Cole Haan Consumer Goods: Non-Durable 0.06%
======================================= ================================= =========
Altran Technologies Services: Business 0.06%
======================================= ================================= =========
Goodyear Tire & Rubber Company Transportation: Consumer 0.06%
======================================= ================================= =========
EagleView Technology Services: Business 0.06%
======================================= ================================= =========
ON Semiconductor High Tech Industries 0.06%
======================================= ================================= =========
Global Payments Services: Business 0.05%
======================================= ================================= =========
Chemicals, Plastics &
PolyOne Rubber 0.05%
======================================= ================================= =========
Vertafore High Tech Industries 0.05%
======================================= ================================= =========
Alion Science and Technology Aerospace & Defense 0.05%
======================================= ================================= =========
Burger King Beverage, Food & Tobacco 0.05%
======================================= ================================= =========
ABC Supply Construction & Building 0.05%
======================================= ================================= =========
CHG Buyer Corporation Healthcare & Pharmaceuticals 0.04%
======================================= ================================= =========
Columbus McKinnon Corp Capital Equipment 0.04%
======================================= ================================= =========
Lions Gate Entertainment Media: Diversified & Production 0.04%
======================================= ================================= =========
TI Group Automotive Automotive 0.04%
======================================= ================================= =========
Peabody Energy Metals & Mining 0.04%
======================================= ================================= =========
Energizer Holdings Consumer Goods: Durable 0.04%
======================================= ================================= =========
Chemicals, Plastics &
Vantage Specialty Chemicals Rubber 0.04%
======================================= ================================= =========
Immucor Capital Equipment 0.03%
======================================= ================================= =========
Seminole Tribe of Florida Hotel, Gaming & Leisure 0.03%
======================================= ================================= =========
Chemicals, Plastics &
PQ Corp Rubber 0.03%
======================================= ================================= =========
Issuer Industry Exposure
======================================= ================================= =========
GlobalLogic Services: Business 0.03%
======================================= ================================= =========
Grifols Healthcare & Pharmaceuticals 0.03%
======================================= ================================= =========
Banking, Finance, Insurance
AmWINS Group & Real Estate 0.02%
======================================= ================================= =========
Harsco Corp Metals & Mining 0.02%
======================================= ================================= =========
Containers, Packaging
Printpack & Glass 0.02%
======================================= ================================= =========
Melissa & Doug Consumer Goods: Non-Durable 0.02%
======================================= ================================= =========
Chemicals, Plastics &
Emerald Performance Materials Rubber 0.02%
======================================= ================================= =========
(18) Please see the important disclosures and notes beginning on
page 21.
Important Notes
This document has been prepared by Marble Point Credit
Management LLC ("Marble Point") which is an investment adviser
registered with the U.S. Securities and Exchange Commission. This
document has been issued by Marble Point Loan Financing Limited
(the "Company" or "MPLF") and is the sole responsibility of the
Company. This document and the information and views included
herein do not constitute investment advice, or a recommendation or
an offer to enter into any transaction with the Company or any of
its affiliates. Each recipient of this document should make such
investigations as it deems necessary to arrive at an independent
evaluation of any investment and should consult its own legal
counsel and financial, actuarial, accounting, regulatory and tax
advisers to evaluate any such investment. This document is provided
for informational purposes only, does not constitute an offer to
sell the shares issued by the Company (the "Shares") or a
solicitation of an offer to purchase any such Shares in the United
States, Australia, Canada, the Republic of South Africa, Japan or
any other jurisdiction, and is not a prospectus. This document may
not be relied upon and should not be used for the purpose of making
any investment decision.
Past performance is not a reliable indicator of current of
future results. The value of investments may go down as well as up
and investors may not get back any of the amount invested.
The value of investments designated in another currency may rise
and fall due to exchange rate fluctuations in respect of the
relevant currencies. Adverse movements in currency exchange rates
can result in a decrease in return and a loss of capital.
This document is being furnished to you solely for your
information. No recipient may forward, reproduce, distribute, or
make available in whole or in part, this document (directly or
indirectly) to any other person. The distribution of this document
in certain jurisdictions may be restricted by law and recipients of
this document should inform themselves about and observe any such
restrictions and other applicable legal requirements in their
jurisdictions. Accordingly, recipients represent that they are able
to receive this document without contravention of any applicable
legal or regulatory restrictions in the jurisdiction in which they
reside or conduct business. By accepting this document, you agree
to be bound by the foregoing limitations. This document, and the
information contained therein, is not for viewing, release,
distribution or publication in or into the United States,
Australia, Canada, the Republic of South Africa or Japan 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, Australia,
Canada, the Republic of South Africa or Japan. 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 or the laws of other
jurisdictions.
The Shares have not been and will not be registered under the
U.S. Securities Act of 1933, as amended, or with any securities
regulatory authority of any state or other jurisdiction of the
United States and may not be offered or sold in the United States
to, or for the account or benefit of, U.S. persons unless they are
registered under applicable law or exempt from registration. The
Company has not been and will not be registered under the U.S.
Investment Company Act of 1940, and investors will not be entitled
to the benefits of such Act.
There is no guarantee that any of the goals, targets or
objectives described in this document will be achieved. The
investment strategies of the Company described herein may not be
suitable for all investors and are not intended to constitute a
complete investment program. Neither Marble Point nor the Company
makes any representation or warranty (express or implied) with
respect to the information contained herein (including, without
limitation, information obtained from third parties) and each of
them expressly disclaims any and all liability based on or relating
to the information contained in, or errors or omissions from, these
materials; or based on or relating to the use of these materials;
or any other written or oral communications transmitted to the
recipient or any of its affiliates or representatives in the course
of its evaluation of the information herein.
None of the Company, Marble Point or any of their respective
parent or subsidiary undertakings, or the subsidiary undertaking of
any such parent undertakings, or any of such person's respective
partners, shareholders, directors, members, officers, affiliates,
agents, advisors or representatives shall have any liability
whatsoever (in negligence or otherwise) for any loss howsoever
arising from any information or opinions presented or contained in
this document nor shall they accept any responsibility whatsoever
for, or make any warranty, express or implied, as to the truth,
fullness, accuracy or completeness of the information in this
document (or whether any information has been omitted from the
document) or any other information relating to the Company, Marble
Point or their respective subsidiaries or associated companies, in
any form whatsoever, howsoever transmitted or made available or for
any loss howsoever arising from any use of this document or its
contents or otherwise arising in connection therewith. This shall
not affect any liability any such person may have which may not be
excluded under applicable law or regulation.
A Note on Forward Looking Statements. This document includes
forward-looking statements. Forward-looking statements include all
matters that are not historical facts. Actual results may differ
materially from any results projected in the forward-looking
statements and are subject to risks and uncertainties. Such
statements are based on current expectations, involve known and
unknown risks, a reliance on third parties for information, and
other factors that may cause actual results to differ materially
from the anticipated results expressed or implied by such
forward-looking statements. The Company and Marble Point caution
readers not to place undue reliance on such statements. Neither the
Company nor Marble Point undertakes, and each specifically
disclaims any obligation or responsibility, to update any
forward-looking statements to reflect occurrences, developments,
unanticipated events or circumstances after the date of such
statement. Actual results may differ materially from the Company's
and/or Marble Point's expectations and estimates.
The information shown herein is estimated, unaudited, for
background purposes only, representative as of the dates specified
herein, subject to adjustment and not purported to be full or
complete. Nothing herein shall be relied upon as a representation
as to the current or future performance or portfolio holdings of
the Company or any strategy or investment vehicle. Certain
information presented herein has been obtained from third party
sources and is believed to be reliable. However, neither the
Company nor Marble Point represents that the information contained
in this document (including third party information) has been
independently verified or is accurate or complete, and it should
not be relied upon as such. Index information, if any, has been
provided for illustration purposes only. Any such information does
not reflect the effect of transaction costs, management fees or
other costs which would reduce returns. An investor cannot invest
directly in an index.
Any of the views or opinions expressed herein are current views
and opinions only and may be subject to change. Statements made
herein are as of the date of this document and should not be relied
upon as of any subsequent date. All information is current as of
the date of this document and is subject to change without
notice.
FootNotes
[1]) As at 13 February 2018. Calculated based on the Ordinary
Shares held by Marble Point, EPCM Holdings LLC (an affiliate of
Marble Point) and personnel of Marble Point and Eagle Point Credit
Management LLC (an affiliate of Marble Point) ("EaglePoint"). This
figure excludes amounts held by accounts managed by Marble Point or
Eagle Point.
2) Targeted returns and dividends are referenced for
illustrative purposes only and are based on various assumptions,
estimates, and beliefs, including regarding future events, which
may or may not prove to be correct or may change. There is no
guarantee that any of the goals, targets or objectives described in
this document will be achieved. Actual performance will vary and
such variance may be material and adverse, including the potential
for full loss of principal.
3) There are no management fees calculated or payable by MPLF on
any of its assets that are invested in other entities managed by
Marble Point (such as CLOs) as management fees are payable at the
level of such underlying investments. As at 30 April 2018, all of
MPLF's non-cash investments are in such entities. MPLF pays Marble
Point a management fee quarterly in arrears in an amount equal to
0.40 per cent. per annum of MPLF's consolidated total assets,
except that such fee is not payable in respect of MPLF's
attributable primary market investments in other entities managed
by Marble Point or its affiliates and which otherwise pay
management fees to Marble Point or such affiliates. In this
respect, Marble Point CLOs generally pay Marble Point collateral
managers a management fee of up to 40 basis points per annum of
such CLO's total aggregate principal balance of loans, cash
equivalents and other investments as well as an incentive fee of up
to 20 per cent. of cash on cash returns after the equity tranche of
a CLO has achieved a fully-realized 12 per cent. cash-on-cash
internal rate of return. In addition, the Funding Subsidiary pays
Marble Point a management fee of 40 basis points per annum of the
average daily aggregate principal balance of loans held by the
Funding Subsidiary.
4) A CLO fee participation takes the form of a rebate which
generally entitles the holder to a payment by the CLO of a
percentage of the CLO management fees that are otherwise payable to
the CLO's collateral manager. In the case of MPLF, this percentage
is calculated such that the Company does not bear more than a 40
basis point management fee on its investment in a CLO's equity
tranche.
5) Past Performance is not indicative of, or a guarantee of,
future performance. The net returns shown herein are estimated,
unaudited and subject to adjustment and reflect the net total NAV
return for the periods shown since MPLF's admission to the London
Stock Exchange (13 February 2018), inclusive of dividends paid to
shareholders. For purposes of this report, MPLF's starting NAV per
share as at admission is estimated and takes into account a
deduction for estimated listing and offering expenses and
pre-admission profits and loss of approximately $2.1 million in the
aggregate. Such results reflect the deductions of applicable
management fees and expenses at the Funding Subsidiary and
underlying Marble Point CLO levels. The ICE Bank of America Merrill
Lynch High Yield Index tracks the performance of U.S. dollar
denominated below investment grade corporate debt publically issued
in the U.S. domestic market. The Credit Suisse Leveraged Loan Index
tracks the investable universe of the US-denominated leverage loan
market. Index returns do not reflect any deductions for fees or
expenses. You cannot invest directly in an
index.
6) Certain information presented in this report is shown on a
look-through basis to the CLO equity investments attributable to
MPLF and to the loans held directly by MPLF Funding Ltd. as at 30
April 2018 (except as otherwise noted) and reflects the aggregate
underlying exposure of MPLF based on the portfolios of those
investments (including, other than in the case of stated spread,
average maturity, market value, and exposure to first-lien loans,
cash held therein). The data is estimated and unaudited and is
derived from CLO trustee reports received by MPLF relating to April
2018 and from custody statements and/or other information received
from CLO collateral managers and other third party sources or
otherwise relating to the Funding Subsidiary. Information relating
to the market price of underlying collateral is as at 6 June 2018;
however, with respect to other information shown, depending on when
such information was received, the data may reflect a lag in the
information reported. As such, while this information was obtained
from third party data sources, April 2018 trustee reports and
similar reports, other than market price, it does not reflect
actual underlying portfolio characteristics as at 30 April 2018 and
this data may not be representative of current or future holdings.
Portfolio data is calculated based on the aggregate principal
amount of assets.
7) For the purposes of the table above, "CLO NAV (% Change)"
refers to the percent by which a CLO's equity net asset value
changed from the December 2017 trustee report to the April 2018
trustee report. Information relating to the market price of the
underlying collateral is as of 31 December 2017 and 30 April 2018,
respectively. While this information was obtained from December
2017 and April 2018 trustee reports, it does not reflect actual
underlying portfolio characteristics as at 30 April 2018 and this
data may not be representative of current or future holdings. "CLO
Par Build (% Change)" refers to the percent by which a CLO's par
value (for purposes of the overcollateralisation test) changed from
the December 2017 trustee report to the April 2018 trustee report.
There is no guarantee that the Investment Manager will consistently
build par value and the Investment Manager expects that there will
be periods of time when par is lost as, for example, loans of
companies for which the investment thesis has changed are sold to
avoid the potential for increased future losses. Past performance
is not indicative of, or a guarantee of, future performance.
8) The Supplemental NAV Attribution table presented in this
report is shown on a look-through basis to the CLO equity
investments attributable to MPLF and to the loans held directly by
MPLF Funding Ltd. as at 30 April 2018. The components of the
Supplemental NAV per share shown herein are estimated, unaudited
and subject to adjustment and reflect the NAV for the periods shown
since MPLF's admission to the London Stock Exchange (13 February
2018) to 30 April 2018. Past Performance is not indicative of, or a
guarantee of, future performance.
9) Ownership and market data is as of 30 April 2018. CLO data is
as of the most recent trustee reports received as of 30 April 2018.
The statistics quoted do not include Marble Point CLOs that have
been redeemed as of 30 April 2018. The summary of portfolio
investments shown is based on the estimated fair value of the
underlying closed positions on a non-consolidated basis as of 30
April 2018. Figures shown for Marble Point CLO Equity, Marble Point
CLO Debt and Marble Point CLO Fee Participations are shown on a
look-through basis to MPLF's aggregate attributable investment in
such asset categories through its indirect investment in MP CLOM
Holdings LLC and underlying Marble Point collateral managers,
except that the "% Owned by Marble Point & Affiliates" column
reflects the relevant tranche owned across all accounts managed by
Marble Point, including MPLF. MPLF's attributable percentage
ownership may be lower. "Funding Subsidiary" refers to MPLF Funding
Ltd., a wholly-owned subsidiary of MPLF that invests in loans.
10) The CLO equity investments recognize investment income for
US GAAP purposes on the accrual basis utilizing an effective
interest methodology based upon an "Effective Yield" to maturity
utilizing projected cash flows. "All-In Yield" represents the
interest on floating--rate senior secured loans is based on a
spread, or fixed rate, over LIBOR (which typically resets every 30
to 90 days) or a similar base rate. Rates shown represent the
spread plus the base rate of the total interest rate per respective
loan contract.
11) The Investment Manager believes that each quarterly vintage
cohort includes all US broadly syndicated CLOs issued during the
same quarter as that in which the Marble Point CLO was issued
(based on an analysis of data in Intex, a third party data source
for US CLOs). The quarterly vintage peer group data is referenced
for comparison purposes only and is based on third party data. The
Company has not independently verified any third party data and
makes no representation as to the accuracy or completeness of such
information. There is no guarantee that the Investment Manager will
consistently build par value and the Investment Manager expects
that there will be periods of time when par is lost as, for
example, loans of companies for which the investment thesis has
changed are sold to avoid the potential for increased future
losses.
12) MPLF's investments in the respective CLOs have been made
indirectly via its ownership interest in MP CLOM Holdings LLC. The
information and data presented is estimated and unaudited and is
based on the analysis of the Investment Manager. Effective yield
figures are provided for illustrative purposes only based on the
Investment Manager's analysis as of the date of the respective CLO
issuer's pricing and the actual effective yield of the investment
as recorded by the Company, MP CLOM Holdings LLC or other entity
holding the investment, may vary over time.
13) Source: J.P. Morgan Default Monitor (1 June 2018).
14) Source: S&P LCD
15) Source: J.P. Morgan High-Yield and Leveraged Loan Morning
Intelligence
16) Source: S&P LCD 1Q18 LCD Quarterly Review
17) The summary of portfolio investments shown is based on the
estimated fair value of the underlying closed positions on a
non-consolidated basis. Figures shown for Marble Point CLO Equity,
Marble Point CLO Debt and Marble Point CLO Fee Participations are
shown on a look-through basis to MPLF's aggregate attributable
investment in such asset categories through its indirect investment
in MP CLOM Holdings LLC and underlying Marble Point collateral
managers. "Funding Subsidiary" refers to MPLF Funding Ltd., a
wholly-owned subsidiary of MPLF that invests in loans.
18) The information presented is on a look-through basis to the
CLO equity investments attributable to MPLF and to the loans held
directly by MPLF Funding Ltd. (the "Funding Subsidiary") as at 31
March 2018 (except as otherwise noted) and reflects the aggregate
underlying exposure of MPLF based on the portfolios of those
investments (including, other than in the case of stated spread,
average maturity, market value, and exposure to first-lien loans,
cash held therein). The data is estimated and unaudited and is
derived from CLO trustee reports received by MPLF relating to March
2018 and from custody statements and/or other information received
from CLO collateral managers and other third party sources or
otherwise relating to the Funding Subsidiary. Information relating
to the market price of underlying collateral is as of month end;
however, with respect to other information shown, depending on when
such information was received, the data may reflect a lag in the
information reported. As such, while this information was obtained
from third party data sources, March 2018 trustee reports and
similar reports, other than market price, it does not reflect
actual underlying portfolio characteristics as at March 2018 and
this data may not be representative of current or future holdings.
Portfolio data is calculated based on the aggregate principal
amount of assets The information presented is on a look--through
basis to the Marble Point CLOs and the Funding Subsidiary.
19) Credit ratings shown are based on those assigned by Moody's
Investors Service, Inc. ("Moody's") or, for comparison and
informational purposes, if Moody's does not assign a rating to a
particular obligor, the weighted average rating shown reflects the
Moody's equivalent rating of a rating agency that rated the obligor
provided that such other rating is available with respect to a CLO
equity or related investment attributable to MPLF. In the event
multiple ratings are available, the lowest Moody's rating, or if
there is no Moody's rating, the lowest equivalent rating, is used.
The ratings of specific borrowings by an obligor may differ from
the rating assigned to the obligor and may differ among rating
agencies. Ratings below Baa3 are below investment grade. Further
information regarding Moody's rating methodology and definitions
may be found on its website (www.moodys.com). This data includes
underlying portfolio characteristics of MPLF's attributable CLO
equity and the Funding Subsidiary portfolio.
20) Industry categories are based on the Moody's industry
categorization of each obligor as set forth in CLO trustee reports
relating to investments held by MPLF or, if such information is not
available in CLO trustee reports or custody reports, the categories
are based on equivalent categorizations as reported by a third
party data provider. In addition, certain underlying borrowers may
be re--classified from time to time based on developments in their
respective businesses and/or market practices. Accordingly, certain
underlying borrowers that are currently, or were previously,
summarized as a single borrower or in a particular industry may in
current or future periods be reflected as multiple borrowers or in
a different industry.
Past performance is not indicative of, or a guarantee of, future
performance. Additional information is available upon request.
(c) 2018. Marble Point Credit Management LLC. All Rights
Reserved.
Enquiries:
Marble Point Loan Financing Limited
Investor Relations
www.mplflimited.com
P: +44 (0) 20 7259 1500
E: ir@mplflimited.com
Corporate Broker:
Stifel Nicolaus Europe Limited
Neil Winward, Corporate Broker - Investment Funds
P: +44 (0) 20 7710 7600
ABOUT MARBLE POINT LOAN FINANCING LIMITED
MPLF is a closed-ended investment company with its ordinary
shares admitted to trading on the Specialist Fund Segment of the
Main Market of the London Stock Exchange. MPLF is invested in a
diversified portfolio of US dollar denominated, broadly syndicated
floating rate senior secured corporate loans via Collateralised
Loan Obligations and related vehicles managed by Marble Point
Credit Management LLC and its affiliates.
NOTE: PAST PERFORMANCE IS NOT INDICATIVE OF, OR A GUARANTEE OF,
FUTURE PERFORMANCE.
Important Information
MPLF is a closed-ended investment company with its ordinary
shares admitted to trading on the Specialist Fund Segment of the
Main Market of the London Stock Exchange. MPLF is invested in a
diversified portfolio of US dollar denominated, broadly syndicated
floating rate senior secured corporate loans via collateralised
loan obligations and related vehicles managed by Marble Point
Credit Management LLC ("Marble Point") and its affiliates. Marble
Point is an investment adviser registered with the U.S. Securities
and Exchange Commission.
This document has been issued by Marble Point Loan Financing
Limited (the "Company" or "MPLF") and is the sole responsibility of
the Company. This document and the information and views included
herein do not constitute investment advice, or a recommendation or
an offer to enter into any transaction with the Company or any of
its affiliates. Each recipient of this document should make such
investigations as it deems necessary to arrive at an independent
evaluation of any investment and should consult its own legal
counsel and financial, actuarial, accounting, regulatory and tax
advisers to evaluate any such investment. This document is provided
for informational purposes only, does not constitute an offer to
sell the shares issued by the Company (the "Shares") or a
solicitation of an offer to purchase any such Shares in the United
States, Australia, Canada, the Republic of South Africa, Japan or
any other jurisdiction, and is not a prospectus. This document may
not be relied upon and should not be used for the purpose of making
any investment decision.
Past performance is not a reliable indicator of current of
future results. The value of investments may go down as well as up
and investors may not get back any of the amount invested.
The value of investments designated in another currency may rise
and fall due to exchange rate fluctuations in respect of the
relevant currencies. Adverse movements in currency exchange rates
can result in a decrease in return and a loss of capital.
This document is for information purposes only. No recipient may
forward, reproduce, distribute, or make available in whole or in
part, this document (directly or indirectly) to any other person.
The distribution of this document in certain jurisdictions may be
restricted by law and recipients of this document should inform
themselves about and observe any such restrictions and other
applicable legal requirements in their jurisdictions. This
document, and the information contained therein, is not for
viewing, release, distribution or publication in or into the United
States, Australia, Canada, the Republic of South Africa or Japan 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, Australia,
Canada, the Republic of South Africa or Japan. 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 or the laws of other
jurisdictions.
The Shares have not been and will not be registered under the
U.S. Securities Act of 1933, as amended, or with any securities
regulatory authority of any state or other jurisdiction of the
United States and may not be offered or sold in the United States
to, or for the account or benefit of, U.S. persons unless they are
registered under applicable law or exempt from registration. The
Company has not been and will not be registered under the U.S.
Investment Company Act of 1940, and investors will not be entitled
to the benefits of such Act.
There is no guarantee that any of the goals, targets or
objectives described in this document will be achieved. The
investment strategies of the Company described herein may not be
suitable for all investors and are not intended to constitute a
complete investment program. Neither Marble Point nor the Company
makes any representation or warranty (express or implied) with
respect to the information contained herein (including, without
limitation, information obtained from third parties) and each of
them expressly disclaims any and all liability based on or relating
to the information contained in, or errors or omissions from, these
materials; or based on or relating to the use of these materials;
or any other written or oral communications transmitted to the
recipient or any of its affiliates or representatives in the course
of its evaluation of the information herein.
None of the Company, Marble Point or any of their respective
parent or subsidiary undertakings, or the subsidiary undertaking of
any such parent undertakings, or any of such person's respective
partners, shareholders, directors, members, officers, affiliates,
agents, advisors or representatives shall have any liability
whatsoever (in negligence or otherwise) for any loss howsoever
arising from any information or opinions presented or contained in
this document nor shall they accept any responsibility whatsoever
for, or make any warranty, express or implied, as to the truth,
fullness, accuracy or completeness of the information in this
document (or whether any information has been omitted from the
document) or any other information relating to the Company, Marble
Point or their respective subsidiaries or associated companies, in
any form whatsoever, howsoever transmitted or made available or for
any loss howsoever arising from any use of this document or its
contents or otherwise arising in connection therewith. This shall
not affect any liability any such person may have which may not be
excluded under applicable law or regulation.
A Note on Forward Looking Statements. This document includes
forward-looking statements. Forward-looking statements include all
matters that are not historical facts. Actual results may differ
materially from any results projected in the forward-looking
statements and are subject to risks and uncertainties. Such
statements are based on current expectations, involve known and
unknown risks, a reliance on third parties for information, and
other factors that may cause actual results to differ materially
from the anticipated results expressed or implied by such
forward-looking statements. The Company and Marble Point caution
readers not to place undue reliance on such statements. Neither the
Company nor Marble Point undertakes, and each specifically
disclaims, any obligation or responsibility, to update any
forward-looking statements to reflect occurrences, developments,
unanticipated events or circumstances after the date of such
statement. Actual results may differ materially from the Company's
and/or Marble Point's expectations and estimates.
The information shown herein is estimated, unaudited, for
background purposes only, representative as of the dates specified
herein, subject to adjustment and not purported to be full or
complete. Nothing herein shall be relied upon as a representation
as to the current or future performance or portfolio holdings of
the Company or any strategy or investment vehicle. Certain
information presented herein has been obtained from third party
sources and is believed to be reliable. However, neither the
Company nor Marble Point represents that the information contained
in this document (including third party information) has been
independently verified or is accurate or complete, and it should
not be relied upon as such. Index information, if any, has been
provided for illustration purposes only. Any such information does
not reflect the effect of transaction costs, management fees or
other costs which would reduce returns. An investor cannot invest
directly in an index.
Any of the views or opinions expressed herein are current views
and opinions only and may be subject to change. Statements made
herein are as of the date of this document and should not be relied
upon as of any subsequent date. All information is current as of
the date of this document and is subject to change without
notice.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
QRFFTMATMBABMRP
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