08:00 Tue 16 Jun 2020
RM SecDirect Lending - Net Asset Value(s)
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("RMDL" or the "Company") | |
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LEI: 213800RBRIYICC2QC958 | |
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Net Asset Value | |
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RMDL announces that its unaudited net asset value per ordinary share as at |
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NAV & Dividend updateThe NAV total return for the month was 2.29%. This takes the one-year NAV total return to (1.5%) and the cumulative NAV total return since IPO in The Ordinary Share NAV as at 31st The Company declared a dividend of 1.625p per ordinary share with respect to the period Q1 2020. The dividend was covered by income by a ratio of 1 to 1.15 for the quarter with income currently on track to achieve the stated dividend objective for Q2 2020. The ex-dividend date is 5th June. During the month the Company purchased an additional 175,000 shares, bringing the total holdings held in treasury to 675,000 shares. RM and the Board continues to monitor the discount to NAV. RM notes that 34% of the Company's portfolio is marked to the market bid of external quotes and the remaining 66% of the portfolio marked by the Valuation Agent with an average mark of 92.52. The current share price also offers a running yield of 8% on the target dividend distribution which RM feels offers income investors compelling value. Portfolio ActivityAs at 31st May, the Company's portfolio consisted of 33 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 60% in bilateral private loans; 38% in club or syndicated private loans; and 2% in more liquid corporate debt. Consequently, private debt investments represent 98% of the invested portfolio. During the month the As lockdown restrictions start to ease our expectation is that portfolio companies within the hospitality and leisure sectors should start to see premises open during July. Update on Growth Financing investment ( In 2019, RMDL invested This is RMDL's second growth financing transaction. The first, to ICP Nurseries, was successfully exited during 2019 with a material NAV gain. The objective of growth financing transactions is to generate upside/NAV growth via equity or equity options should the business be successful in executing its growth strategy whilst protecting the downside (via secured lending over real assets) to RMDL. Such transactions attract a higher degree of resource and are therefore priced and structured accordingly Loan Amount: For providing the growth financing RM has negotiated, on behalf of RMDL, an ownership stake amounting to 46% of the new ordinary equity in Trent. RM has provided significant support to Trent's management team since the loan's inception in 2019 and this intensive management support is expected to continue as Trent enters its next phase of growth and therefore the initial value of the RMDL equity will be zero, as per the recent external valuation commissioned by Trent following the completion of the reorganisation. This will be revisited by the independent valuation agent on a regular basis and disclosed in line with previous monthly updates. In recognition of the continued support required and completed to date and in lieu of any work fees, RM Funds has agreed with the Trent owns and operates three businesses, each well positioned in attractive growth sectors, including: · Fusion Energy -Energy efficiency solutions to domestic households. Fusion Energy contracts with utility companies under the government Energy Company Obligation "Eco3" Scheme which targets energy efficiency measures in low income and vulnerable households. Energy suppliers with more than 200,000 customers are automatically required to deliver Eco3. The energy efficiency measures supplied by business are calculated by using the Home Heating Cost Reduction as measured by Lifetime Bill Savings of a measure / Fusion Energy estimates that during 2020 it will deliver c. · Trianco - The manufacture and distribution of electric boilers. SAP ratings measure the carbon impact on the environment and measure the energy efficiency of a property. SAP10 is due to be released in 2020 which updates the carbon factor for electric heating and which reflects the greening of the grid. In addition, gas heating to new houses is being phased out as it will be banned by 2025. Therefore, Trianco's Aztec range of electric boilers and specifically the new · Grizzly Ovens - The design, manufacture and distribution of charcoal ovens under the "Grizzly" name. To date the product sold is a commercial oven supplied to restaurants and professional chefs. The "Grizzly Cub" oven has been designed for the consumer market and is in prototype stage for production to start later in 2020. The European domestic BBQ market is worth around
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The Company also announces that the Monthly Report for the period to | |
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For further information, please contact: | |
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Tel: 0131 603 7060 | |
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Tel: 01481 737600 | |
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Tel: 0207 353 4200 | |
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Tel: 020 7653 9690 | |
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Tel: 020 7496 3000 | |
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About RM Secured Direct Lending | |
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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. | |
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For more information, please see | |
This information is provided by RNS, the news service of the
Quick facts: RM Secured Direct Lending PLC
Price: -
Market: LSE
Market Cap: -
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