Icg-longbow Regulatory News (LBOW)

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9 September 2019

ICG-Longbow Senior Secured UK Property Debt Investments Limited (the Company)

Portfolio Update

The Company has entered into a new £24.6 million loan commitment to an affiliate of RoyaleLife, the UK's leading provider of bungalow homes. The Company is participating in a larger £142.7 million loan facility alongside two other funds managed by the Investment Adviser, in line with the Company's investment criteria.

The loan will refinance a portfolio of 10 assets in the residential bungalow homes sector. It carries a four-year term and has an initial LTV ratio of 78.9%. Day 1 drawings on the loan will be approximately £20.3 million, with the Company also providing a committed capital expenditure facility in support of the borrower's business plan.

On completion, the Company's total invested capital will be £112.5 million with undrawn follow-on commitments of £10.3 million. Portfolio LTV will be 62.5% with a weighted average loan duration of approximately 2.1 years. The RoyaleLife loan is accretive for shareholders, with the Company's pro forma weighted average interest coupon rising to 7.06%. In addition, the loan contains significant contracted exit fees which further boost the returns from the transaction.

The Company is currently executing a further circa £15.3 million hotel investment and circa £6.5 million office investment which it expects to sign in the coming weeks. In order to finance the RoyaleLife transaction and this immediate pipeline, the Company has drawn down £10 million on its revolving credit facility.

As highlighted in previous updates, upon closing these investments the Company's cash will be fully committed with the revolving credit facility largely drawn. It is anticipated that drawings under the revolving credit facility will be repaid in due course from the issuance of new shares and/or funds received from portfolio redemptions.

The Company is pleased to note that, upon completion of these investments, full dividend cover will be restored.

For further information please contact:

Further information on the Company can be found on its website at http://www.lbow.co.uk.