TIDMRMDL TIDMRMCC
RNS Number : 9346B
RM Secured Direct Lending PLC
16 January 2018
RM Secured Direct Lending Plc
("RMDL" or the "Company")
LEI: 213800RBRIYICC2QC958
Quarterly Update
RMDL, an investment trust specialising in secured debt
investments, today announces an update for the quarter ended 31
December 2017. The Factsheet for the period is now available to be
viewed on the Company website
www.rmdl.co.uk/investor-centre/monthly-factsheets/.
The Ordinary Shares NAV as at 31 December was 98.59 pence which
is 0.23 pence higher than the end of November and is made of up
interest income net of expenses of 0.46 pence and a decrease in
asset valuations of 0.23 pence.
RM Capital Markets Limited (the "Investment Manager") has
continued to grow the portfolio of secured debt investments, with
significant progress made in deploying the GBP30m raised in October
2017 through the issue of C shares. Currently GBP22m has been
committed, of which GBP15m has been drawn down. The Investment
Manager expects that by the end of February proceeds will be fully
deployed on a cash basis.
The Company also signed a Revolving Credit Facility ("RCF") of
GBP10m with OakNorth Bank which will allow the Company to access
additional capital in order to invest in its strong pipeline of
opportunities and grow the portfolio. It is expected that the RCF
will start to be drawn during February or March.
The portfolio has grown to 24 debt investments across 13 sectors
with GBP93m of commitments across the Ordinary and C share classes
of which approximately GBP70m has been deployed on a cash basis.
Approximately 75% of the portfolio is in higher yielding private
bi-lateral or private club investments with the remainder in more
liquid public debt transactions.
The portfolio is well positioned to withstand the increase in
the Bank of England's interest rate from 0.25% to 0.5% and any
additional rate rises, which are expected to be gradual and
limited. Over the period, the proportion of the portfolio linked to
interest rates has risen from 22% to 39% and these investments are
expected to see an increase in returns.
The fixed rate part of the portfolio is typically limited to
shorter tenures, enabling greater flexibility to rapidly redeploy
the proceeds into higher rate investments, as we move through the
interest rate cycle.
Credit spreads have remained firm as there has been continued
compression of yields within corporate credit, however the
Investment Manager continues to identify opportunities which meet
the Company's yield returns and risk profiles.
The Investment Manager continues to originate and review
numerous opportunities. It has made a number of new debt
investments to a variety of established businesses and additional
investments to existing portfolio companies, supported by strong
security packages.
New transactions for the quarter include:
-- Advertising: GBP7.45m participation in a private lending
group for Exterion Media in its senior secured term loan. Exterion
is a leading out-of-home media company with limited leverage
combined with an established portfolio of billboards, hoardings
both digital and non-digital. The investment is secured across all
of the company assets
-- Business Services: GBP7m committed to a leading HR and
payroll services firm as part of a private debt syndicate and is
secured across the assets of the business on a senior secured
basis. The high margin business is a clear market leader with
strong customer retention, due to the nature of payroll services
and a sizeable order book, giving regular and visible cashflows
-- Industrial: EUR7m private debt transaction to a German
manufacturer of automotive parts to the commercial truck industry
in Germany. Given the inherently cyclical nature of the industry
this was a well structured transaction with significant due
diligence undertaken. The investment is junior secured with limited
overall leverage within the business and appropriate lender
covenants and documentation are in place to protect the
investment
-- Energy: GBP1.8m loan to Solarplicity, one of the leading
energy providers in the UK, refinancing an operational solar park.
This is RMDL's second loan to Solarplicity and is secured on a
separate solar park where RMDL is the sole senior secured
lender
-- Asset Finance: Additional drawdowns for Praetura Asset
Finance. As the portfolio of receivables has grown, RMDL has
advanced additional funds under the existing documentation
-- Additional Investments: The Investment Manager has made
additional investments to existing portfolio companies, including
Satcom, L'Oscar Hotel, Ardonagh Group and NewDay
-- Divestments and Maturities: Over the period the Company
divested its investment in the consumer discretionary sector and
three real estate bridging loans totalling GBP2.85m were repaid or
matured
The Investment Manager has a healthy pipeline of active
opportunities which it has taken into 2018. These opportunities are
at various stages of diligence and documentation and include
student property, residential property and additional asset finance
opportunities. It is the expectation of the Investment Manager that
this pipeline of opportunities will be used to deploy all of the
remaining C share proceeds as well as utilisation of the RCF by the
end of March.
James Robson, Chief Investment Officer of RM Capital Markets
Limited, said:
"This has been a busy quarter for the Company. We were delighted
at the response from investors to our C Share issue and we have
made swift progress in identifying a strong pipeline of
opportunities that meet the Company's yield targets and risk
profiles. The portfolio is well balanced with good diversity across
a number of attractive sectors and established businesses,
supported by strong security packages. We will maintain this
momentum and the quality of the portfolio by continuing to invest
in further high yielding secured lending opportunities, using the
additional capacity from our RCF with OakNorth."
For further information, please contact:
RM Capital Markets Limited - Investment Manager
James Robson
Pietro Nicholls
Tel: 0131 603 7060
International Fund Management - AIFM
Chris Hickling
Shaun Robert
Tel: 01481 737600
PraxisIFM Fund Services (UK) Limited - Administrator and Company
Secretary
Anthony Lee
Trish Standaloft
Ciara McKillop
Tel: 020 7653 9690
Nplus1 Singer Advisory LLP - Financial Adviser and Broker
James Maxwell
James Hopton
Tel: 020 7496 3000
Tulchan Group - Financial PR
James Macey White
Elizabeth Snow
Tel: 0207 353 4200
About RM Secured Direct Lending
RM Secured Direct Lending Plc ("RMDL" or the "Company") is a
closed-ended investment trust established to invest in a portfolio
of secured debt instruments.
The Company aims to generate attractive and regular dividends
through loans sourced or originated by the Investment Manager with
a degree of inflation protection through index-linked returns where
appropriate. Loans in which the Company invests are predominantly
secured against assets such as real estate or plant and machinery
and/or income streams such as account receivables.
For more information, please see
https://rmdl.co.uk/investor-centre/
This information is provided by RNS
The company news service from the London Stock Exchange
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