MPLF.L Regulatory News (MPLF)

8 April 2020

Marble Point Loan Financing Limited

COVID-19 and Q1 2020 dividend update

Marble Point Loan Financing Limited ("the Company" or "MPLF"), today issues an update on the impact of COVID-19 and its Q1 2020 dividend.

As detailed in the Company's previous monthly reports, the quarterly cash distributions from its portfolio of CLO Equity, CLO Debt and other related investments have increased over the past several quarters. These quarterly distributions have funded Company cumulative dividend payments of approximately $0.155 per share since the IPO and other cash uses including new investments. Further, in each of the past five quarters, portfolio cash distributions exceeded the quarterly dividend by a sound margin, in-line with the Board's expectations in normal market conditions.

Given the ongoing uncertainty caused by the COVID-19 pandemic, however, the Board has resolved to temporarily suspend the declaration of dividends. The Board and the Investment Manager recognise the importance of dividends for Shareholders but believe preserving liquidity is the appropriate and prudent action considering the significant near-term uncertainties that exist.

The COVID-19 pandemic and its unprecedented economic disruption have seen rating agencies downgrade CLOs' underlying senior secured loan collateral at an accelerating pace which increases the risk of triggering provisions of CLOs' tests which could impact near-term cash flows. Additionally, the heightened risk of higher than modeled default rates may impact the portion of distributions ascribed to income under the Company's effective yield methodology, thereby potentially affecting the magnitude of cash flows.

It is difficult to predict the full impact of the COVID-19 pandemic on loan and CLO markets, but the Company remains focused on delivering long term value to shareholders and taking prudent actions in the near term in respect of this quickly changing market dynamic.

The Investment Manager believes the dislocation in credit markets may also create attractive investment opportunities beneficial to future investment portfolio cash distributions, with the goal of seeking to maximise shareholders' total return over the long term. The Company believes it is well positioned to take advantage of such dislocation. To the extent that income generated by the CLOs is not distributed but is available for reinvestment into additional collateral within the CLOs, given the current loan market environment, such reinvestment activities may build par and enhance potential distributions from the CLOs in the future.

In the event that cash flows in the near term are not impacted or should conditions in the loan market improve, the Board will consider the reinstatement of the quarterly dividend and other appropriate options.

The Board will, in consultation with the Investment Manager monitor these developments and the performance of the Company's investments and make further announcements as appropriate.

Robert Brown, Chairman of Marble Point Loan Financing, commented:

"With an average of over 29 years' experience in leveraged credit markets, the Investment Manager's senior management team has invested through several previous market dislocations. MPLF's Board of Directors has confidence in the Investment Manager's ability to manage the Company's investments through this period and deliver long-term value for shareholders."

Past performance is not indicative, or a guarantee, of future performance.

This release contains inside information.

Enquiries:

Marble Point Loan Financing Limited

Investor Relations

T: +44 (0) 20 7259 1500

E: ir@mplflimited.com 

Website: www.mplflimited.com 

Corporate Broker:

Stifel Nicolaus Europe Limited

T: +44 (0) 20 7710 7600

Financial Public Relations:

Charlie Barker / Catherine Chapman

MHP Communications

T: +44 (0) 20 3128 8100

MarblePoint@mhpc.com

ABOUT MARBLE POINT LOAN FINANCING LIMITED

Marble Point Loan Financing Limited (the "Company") is a Guernsey closed-ended investment company with its ordinary shares admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange (tickers: MPLF LN / MPLS LN). The Company is invested in a diversified portfolio of US dollar denominated, broadly syndicated floating rate senior secured corporate loans via CLOs, loan accumulation facilities and other vehicles managed by Marble Point Credit Management LLC or its affiliates. For more information, please visit the Company's website: www.mplflimited.com.

LEI: 549300DWXSN5UC85CL26

ABOUT MARBLE POINT CREDIT MANAGEMENT LLC

Marble Point Credit Management LLC ("Marble Point") is a specialist asset manager focused exclusively on leveraged loans. Marble Point was founded by Thomas Shandell in partnership with Eagle Point Credit Management, a leading investor in CLO securities. As at 31 March 2020, Marble Point manages approximately $5.3 billion of assets across CLOs and other managed accounts.

IMPORTANT INFORMATION

This document is provided for informational purposes only and does not constitute an offer to sell any shares, notes or other securities (collectively, "Securities") issued by the Company or a solicitation of an offer to purchase any such Securities in the United States, Australia, Canada, the Republic of South Africa, Japan or any other jurisdiction. This document may not be relied upon, and should not be used, for the purpose of making any investment decision. The Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold in the United States to, or for the account or benefit of, U.S. persons unless they are registered under applicable law or exempt from registration. The Company has not been and will not be registered under the U.S. Investment Company Act of 1940 and investors will not be entitled to the benefits of such Act.

Past performance is not a reliable indicator of current of future results. The value of investments may go down as well as up and investors may not get back any of the amount invested. The value of investments designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currencies. Adverse movements in currency exchange rates can result in a decrease in return and a loss of capital.