Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors
Why invest in RMDL?
RM Capital: THE INVESTMENT CASE

RM SecDirect Lending looks for more funding as demand for loans soars

RDML specialises in senior debt packages for small to medium-sized companies
picture of twenty pound note
INVESTMENT OVERVIEW: RMDL The Big Picture
Demand for loans from mid-caps is strong

Debt-focused investment trust RM SecDirect Lending (LON:RMDL) has deployed £40mln of the £50mln raised when it floated last December and is on track to meet its dividend targets.

RDML specialises in senior debt packages for small to medium-sized companies, with eleven loans now in a portfolio that currently yields 7.7%.

At 31 March, the NAV per share was 97.31p and Total Net Assets were £48.9mln.

RM Capital Markets , the trust’s manager, said the borrowers include a healthcare group specialising in behavioural health, a UK high street retailer and a large UK/European forecourt provider as well as bespoke deals for UK residential bridging finance and student accommodation.

WATCH: 'It's been an exceptionally busy first quarter' - RM Secured Direct Lending boss

CLICK HERE: For a daily round-up of all the Proactive news

“Based on the current portfolio, the company expects to achieve its stated annualised dividend yield target of 4% pa (based on the 100p IPO price) in its first year, rising to 6.5% thereafter for the year to 31 December 2018,” it said.

RM Capital added that since it floated the pipeline of prospective deals has grown with its own, directly originated transactions leading the way.

There were an additional £28mln of loans in advanced due diligence and documentation phase with a further £44m of prospective deals being assessed.

To meet the demand, RM Capital is in negotiations to establish a revolving credit facility and also expects to raise additional funds from investors in the near future.

James Robson, chief investment officer of RM Capital, said: "One of our core priorities was to deploy the funds quickly and into attractive assets, and we have done exactly that.

"There is significant demand from businesses of varying sizes, and across multiple sectors to access funding solutions that meet their specific financing needs and I am confident in our ability to continue to source and progress our pipeline of secured lending opportunities.”

 

PhilW.jpg


Register here to be notified of future RMDL Company articles
View full RMDL profile View Profile

RM Capital Timeline

Related Articles

different currencies
Fri
The decision to complement its retail offering with a corporate service is quite literally paying off
picture of twenty pound note
April 19 2017
RDML specialises in senior debt packages for small to medium-sized companies
Bucharest
August 16 2016
Property prices in Bucharest are benefiting from continuous economic growth averaging more than 3% p.a., as well as increased interest in the local property market.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use