Not forgetting the 10% dividend !24 Sep 2015 10:08
http://*********************/views/15221/gli-finance-launches-closed-end-fund-shares-are-a-buy-yield-95
GLI Finance (GLIF) has announced that “it has successfully launched GLI Alternative Finance plc, a closed end fund focusing on a loan portfolio diversified by geography, asset class, duration and security”
Recently established GLI Finance subsidiary, GLI Asset Management, is to manage the fund, with the intention of the portfolio being principally originated through the investee platforms in which GLI holds equity investments.
An initial portfolio of loans has been transferred by GLI in consideration for the issue of 40,270,763 shares in the alternative finance plc, whilst a further 12,389,587 shares at £1 each have also been issued in the new plc, to see a total of 52,710,350 shares in issue on admission to the Specialist Fund Market of the London Stock Exchange on 23rd September.
The alternative finance plc “intends to target a net dividend yield of 8% per annum”, whilst it will also pay a management fee, on the lower of net asset value or market cap, of “0.75% p.a. up to £100 million; 0.5% p.a. over £100 million”.
However, despite these latest developments, shares in GLI Finance currently remain at recently reduced levels of a 51.5p offer price. This follows an update last month and CEO Geoff Miller noting earlier this month that “the provision of finance to SMEs globally continues to be problematic, with banks only willing or able to provide finance in large loan sizes on very straightforward credit terms or to smaller companies with impeccable credit, presenting the alternative finance market with multiple opportunities”.
With the prospective dividend yield now more than 9.5%, we remain positive on this Income play, ahead of interim results scheduled for next week, at 51.5p this is a buy.
- See more at: http://*********************/views/15221/gli-finance-launches-closed-end-fund-shares-are-a-buy-yield-95#sthash.FfX69gvx.dpuf
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