RM Secured Direct Lending PLC Net Asset Value(s) (1155N)
18 May 2020 - 4:00PM
UK Regulatory
TIDMRMDL TIDMRMDZ TIDMTTM
RNS Number : 1155N
RM Secured Direct Lending PLC
18 May 2020
RM Secured Direct Lending Plc and RM ZDP PLC
("RMDL" or the "Company")
LEI: 213800RBRIYICC2QC958
Net Asset Value
RMDL announces that its unaudited net asset value per ordinary
share as at 30 April 2020, on a cum income basis, was 89.10 pence
(31 March 2020: 86.64 pence).
RM ZDP PLC announces that the unaudited accrued capital entitlement
per ZDP share as at 30 April 2020 was 107.36 pence (31 March
2020: 107.05 pence).
Market Update
The market saw a recovery in sentiment during April as governments
globally sought to introduce and or increase policy measures
to help businesses though this lockdown period. This improved
risk appetite across markets meant credit spreads retraced from
the wider levels seen during March and resulted in modest valuation
gains for the portfolio during the month.
NAV
The NAV total return for the month was 2.83%. This takes the
one-year NAV total return to (3.1%) and the cumulative NAV total
return since IPO to 9.4%.
The Ordinary Share NAV as at 30(th) April 2020 was 89.10 pence
per share, which is 2.46 pence higher than at 31(st) March 2020,
comprising interest income net of expenses of 0.53 pence per
share and an increase in portfolio valuations of 1.93 pence per
share which includes all credit and currency movements.
During the month the Company purchased 500,000 shares at 72.50
pence. After the month end the Company purchased a further 35,000
shares at 79 pence. These will all be held in treasury.
Portfolio Activity
As at the 30(th) April, the Company's portfolio consisted of
34 debt investments with a running yield of 9.48%, diversified
across 13 sectors, with the percentage split between fixed and
floating rate of 56% to 44%. The portfolio structure is 59% in
bilateral private loans; 36% in club or syndicated private loans;
and 5% in more liquid corporate debt. Consequently, private debt
investments represent 95% of the portfolio.
The Company declared a dividend of 1.625p per ordinary share
with respect to the period Q1 2020.The ex-dividend date is 5(th)
June.
No new investments were made during the period as the focus for
the Investment Manager remains on managing the existing portfolio.
Within the top 10 investments which represents circa 50% of the
portfolio, eight paid interest in cash as expected during the
period. The two remaining holdings utilised the structural features
of their loan terms to pay interest via Payment-in-Kind (PIK).
The Investment Manager continues to closely monitor the entire
portfolio and support borrowers where necessary. A number of
other portfolio companies who provide lender reporting monthly
had positive updates. These updates started to cover the period
of the lockdown in March
The key highlights of the portfolio's activities during April
include:
* Asset Finance - post period end RM Funds received the
quarterly (to 31(st) March) collateral review from
the third-party provider engaged to provide such
services to the Company. For Quarter One 96% of the
portfolio is performing, broadly in line with
previous reporting periods and operating as per the
financial model base case.
* The two largest hotel investments : RMDL received
their scheduled quarterly interest payment during the
month. The sites currently remain closed.
* The Automotive Parts investment in Germany : the
company is seeking to restart production (in line
with the management forecasts given at the start of
this crisis), which supports cautious optimism that
the supply chain is restarting - this note is using
the PIK feature within the documentation allowing the
borrower to conserve cash which will be required for
working capital as operations restart.
* The Gym Operator : the sponsor and the lender are in
negotiations regarding the need for additional
working capital - whilst discussions take place the
lender is allowing the borrower to conserve cash and
has PIK documentation in place.
* The two student accommodation investments : RMDL
continues to receive interest as both have interest
reserves which can be utilised.
* Two other hotel transactions : RMDL continues to
receive interest as both have interest reserves which
can be utilised.
The Investment Manager's key priority remains on the protection
of capital, and collection of its economic interests.
Post month end the Board and the Investment Manager reached agreement
with regards to the extension of the Investment Management Agreement
"IMA". The Board would like to take this opportunity to explain
more fully the rationale behind the agreement reached. Norman
Crighton, Chairman, commented;
"The Board is pleased to have secured the services of RM Funds
for another three years at the same fee rate which has been in
place since the launch of the Company in 2016. At 0.875% per
annum the agreement secures RMDL Shareholders one of the best,
and lowest cost, deals in the debt sector. In addition, the Board
is delighted that RM Funds has agreed to continue to align its
interests with Shareholders by purchasing shares in the market
using a portion of their management fees.
The portfolio has been constructed by RM with the majority of
investments being bespoke loan agreements which are highly complex,
with numerous covenants. The portfolio has a weighted average
life of 3.25 years so the Board aligned the Investment Management
Agreement with the life of the portfolio, and believes there
is no group better positioned to manage your investments.
By extending the IMA at the same fee rate and ensuring RM Funds
continue to buy shares in the market, Shareholders have the ongoing
alignment of the Investment Manager, and security of their continued
services through what could be a volatile period. "
If you have any questions for the Board please do not hesitate
to contact Singers and we will respond as soon as possible.
The Company also announces that the Monthly Report for the period
to 30 April 2020 is now available to be viewed on the Company
website:
https://rmdl.co.uk/investor-centre/monthly-factsheets/
END
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
Tulchan Group - Financial PR
James Macey White
Elizabeth Snow
Tel: 0207 353 4200
PraxisIFM Fund Services (UK) Limited - Administrator and Company
Secretary
Brian Smith
Ciara McKillop
Tel: 020 7653 9690
Nplus1 Singer Advisory LLP - Financial Adviser and Broker
James Maxwell
Lauren Kettle
Tel: 020 7496 3000
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/monthly-factsheets/
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
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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