Net Asset Value(s)

RNS Number : 9928P

RM Secured Direct Lending PLC

16 October 2019

 

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 September 2019, on a cum income basis, was 98.05 pence (31 August 2019: 99.00 pence).

RM ZDP PLC announces that the unaudited accrued capital entitlement per ZDP share as at 30 September 2019 was 105.30 pence (31 August 2019: 105.00 pence). NAV NAV % Total Return for the month was 0.70% and brings the NAV % Total Return for the first 9 months of the year to 6.63%. Consequently, the Company is well on track to exceed its distribution target of 6.5 pence per share for the calendar year. The Ordinary Share NAV as at 30th September 2019 was 98.05 pence, which is 0.95 pence lower than the end of August. The monthly movement in NAV was mainly driven by the ex-dividend effect of the 1.625 pence total declared in August and paid in September, positive net interest income net of expenses of 0.64 pence and an increase in portfolio valuations of 0.06 pence.  Portfolio Activity The portfolio consists of 35 investments split across 13 sectors. The average yield on the portfolio increased by 21 bps to 8.82% in the quarter. Invested capital currently stands at £125m, with the RCF facility partially drawn and is very similar to the position at the end of Q2. The weighted average life of the Loans within the portfolio is 3.50 years and duration of just under 1.50 years. Overall, private debt represents c. 96% of the portfolio's holdings with the full breakdown as follows: 59% bilateral loans, 37% within club or syndicated private loans and 4% in liquid corporate debt. During the quarter there were two new investments and several drawdowns on existing facilities. The transactions were funded from a combination of existing Loans maturing, repayments and two divestments. To date the Investment Manager has invested over £200m of capital in high quality businesses secured by tangible real assets, and recycled or re-deployed in excess of £75m of capital. This continues to demonstrate the Investment Manager's ability to invest in high quality Loans, generate attractive risk-adjusted returns and collect principal repayments. In addition, these repayments and divestments demonstrate the robustness of the Company's valuation policy and carrying values of the holdings. New Investments in the Quarter Euroports ·      Euroports, a leading European port infrastructure operator: €2m participation in private syndicated facility maturing 2026 paying Euribor +775bps. This investment follows the key theme for the Company of investing in real assets with visible cashflows. In addition, there is significant sponsor equity support sitting below the RMDL investment and the business offers substantial asset and cash flow coverage. énergie Fitness énergie Fitness, the leading low-cost fitness franchisor in the UK and Ireland; £6m new investment to provide a comprehensive financing package to support leading sustainable and impact investor, Bridges Fund Management, in its acquisition of énergie Fitness. The financing package includes senior secured term loan and revolving credit facilities. The health and fitness sector remains a fast-growing market and with an increasing demand for high quality, low-cost operators. As the sole lender RMDL's Investment Manager has structured a highly covenanted, senior secured loan. Outlook & Pipeline The Investment Manager has a variety of investment opportunities that satisfy the strict credit criteria and sector focus which are currently going through the Due Diligence and Documentation processes. It remains confident in its ability to originate and close high-quality investments. It is focused on deploying and recycling capital into non-cyclical sectors, with real asset security and limited correlation to wider equity markets. The monitoring of the existing loans remains a priority, with all loans marked-to-market on a monthly basis reflecting perceived or actual risks to underlying Loan performance. The Investment Manager will continue to maintain this strict discipline relating to the due diligence, structuring, documentation and overall credit quality of existing and prospective investments. The Investment Manager will continue to use part of their management fee to purchase shares and will be notifying the market on or shortly after 16th October that the purchase for Q3 2019 has been completed, increasing their total direct holding to in excess of 1,043,000 shares.

The Company also announces that the Monthly Report for the period to 30 September 2019 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: [phone]

International Fund Management - AIFM

Chris Hickling

Shaun Robert

Tel: [phone]

Tulchan Group - Financial PR

James Macey White

Elizabeth Snow

Tel: [phone]

PraxisIFM Fund Services (UK) Limited - Administrator and Company Secretary

Anthony Lee

Ciara McKillop

Tel: [phone]

Nplus1 Singer Advisory LLP - Financial Adviser and Broker

James Maxwell

Lauren Kettle

Tel: [phone]

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/

 

END

 

 

NAVGGGBCUUPBGQA