25 Jul 2013 07:58
25 July 2013
GLI Finance Limited
NAV and Trading Update for the quarter ended 30 June 2013
GLI Finance Limited ("GLIF" or "the Company") today announces its unaudited net asset value as at 30 June 2013.
The Company's unaudited net asset value (NAV) per share as at 30 June 2013 was 53.1p. This compares to the unaudited NAV of 54.0p as at 31 March 2013 and 49.1p per share as at 31 December 2012.
The positive impact of an increase in the value of the Company's investment in BMS Finance was offset by lower prices in the Company's US loan portfolio.
Trading Update
When the Company acquired BMS Finance in November 2012 it was financed with an £11.6m loan note from GLIF and £1m of equity capital, one third subscribed by the management and two thirds by GLIF. Due to continued good performance from the underlying assets within BMS, the value of the equity exceeded £2m by the end of June 2013. BMS expects its existing capital to be fully deployed in loans shortly and the pipeline of potential new deals remains strong.
Since the period end, BMS has sold Hi-Wave Audio to Tectonic, for cash and equity consideration. The majority of the remaining business has been spun out into a new company, Redux, in which BMS retains an economic interest. This should optimise the value realised from Hi-Wave without significant funding requirement from GLIF.
In the US, T2 CLO I Ltd continues to perform well. As had been previously flagged in our annual report at the beginning of April, we had come to an agreement with the Company's investment manager to terminate its agreement by mutual consent, and payments to T2 Advisers in future will be directly related to the interest received by GLIF from the CLO.
The Company's other CLO investments are now advised by GMB Partners, and we are working closely with them on how best to take advantage of CLO markets to put monies to work in an accretive manner.
In future we will also be reporting on progress being made by FundingKnight, the crowd funding platform in which we invested last week. This platform provides GLIF with the potential to widen its UK SME lending over time and we expect to add further origination partnerships as we further develop our business.
For further information, please contact:
Geoffrey Miller
GLI Finance Limited
+1 203 916 0003
+44 7408 830719
Investec Bank plc
Tim Mitchell
Jeremy Ellis
+44 (0)20 7597 5970
Panmure Gordon
Dominic Morley
Fred Walsh
+44 (0)20 7886 2500
Ed Gascoigne Pees
FTI Consulting
+44 (0) 207 269 7132