RMDL.L Regulatory News (RMDL)

25 March 2020

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.

RM Secured Direct Lending PLC

("RMDL" or the "Company")

COVID-19 UPDATE

Portfolio update and investor call

RMDL, the closed-ended investment trust established to invest in a portfolio of secured debt instruments, issues an update with regards to the ongoing market uncertainty relating to Covid-19.

Covid-19 market impact

The global effects of the spread of Covid-19 have significantly impacted both equity and credit market valuations as well as shut down major global economies.

RM Capital Markets Limited, the "Investment Manager", has been working with its stakeholders, sponsors and borrowers to define and quantify the potential impact on the portfolio of Loans which RMDL has investments in within the context of this rapidly developing situation.

Portfolio Valuation 

The portfolio is marked by the Valuation Agent monthly with the NAV published on or around the 16th of each month. However, given the recent volatility in credit spreads since the last published NAV, the Investment Manager aims to update investors on current valuations and provide further information on portfolio exposures.

It is the stated policy of the Company to mark the portfolio to market - such marks give investors monthly information as to the Net Asset Value of the portfolio. This exercise was conducted by the Investment Manager and not the Valuation Agent in order to provide a timely indication for all stakeholders.

Within the last NAV release the Investment Manager noted that as at 13th March secondary credit spreads had softened (widened). This spread widening continued and accelerated over the following week. At close of business on the 19th March, RM Funds updated the marks of the portfolio to reflect values of portfolio investments. This was driven by actual valuations where there is some secondary price visibility or reference points (approximately 30% of the portfolio). For those investments with no reference points, valuations were reviewed and updated to incorporate the material change in sentiment and/ or any idiosyncratic risks arising from the current conditions.

The resultant change in mark-to-market following the valuation exercise was approximately -9.6 pence per Share.

The NAV as at 29 February was 98.74 pence per share, updating for the ex-dividend effect of the 1.7 pence per share and the recent marks, gives an implied NAV of circa 87.44 pence per share as at the market close on 19th March.

Investor call

The Investment Manager would like to invite investors to join the team on a call on Thursday 26th March at 2pm to run through the portfolio in greater detail, including investment metrics and the Investment Manager's outlook on addressing any stress which might be caused by the COVID-19 situation.

Investors who wish to listen into the call please register your interest by contacting Tulchan Communications on rmdl@tulchangroup.com.

Investor questions should be submitted in advance to the Company's Broker RMDL@n1singer.com.