19 Apr 2017 07:01
19 April 2017
RM Secured Direct Lending Plc
("RMDL" or the "Company")
Quarterly Update
RMDL, an investment trust specialising in secured debt investments, today announces its quarterly update and is delivering on its stated strategy and deploying funds raised at the successful initial public offering in December 2016 ("IPO").
As at 31 March 2017, the NAV per share was 97.31p and Total Net Assets were £48.9m. The Factsheet for the period to 31 March 2017 is now available to be viewed on the Company website https://rm-funds.co.uk/rmdl/investor-reports/.
RM Capital Markets Limited (the "Investment Manager") has made excellent progress in investing the IPO proceeds, having now committed c.£40m of Loan commitments to companies across nine sectors. The Company's portfolio now comprises a total of 11 Loans.
The borrowers range from a healthcare group with a strong market position in the behavioural health care sector, a UK high street retailer and a large UK/European forecourt provider with significant property assets and business revenues, to bespoke financing transactions for UK residential bridging finance as well as funding student accommodation. The loans are all secured and are predominantly senior in the capital structure with significant security packages designed to protect any downside risks for the Company.
The current yield on these investments is c.7.70% rising to 8.13% when fully drawn with a weighted-average life of 3.46 years.
Based on the current portfolio, the Company expects to achieve its stated annualised dividend yield target of 4% p.a (based on the IPO price) in its first year, rising to 6.5% thereafter for the year to 31 December 2018.
The Investment Manager continues to see an excellent pipeline of opportunities across a range of attractive sectors. Since the Company's IPO, the momentum of prospective deals has grown and the directly originated deals have been the predominant focus. There is currently an additional £28m in the advanced due diligence and documentation phase. In addition, the Investment Manager is progressing due diligence on a further £44m of prospective Loans.
In order to continue to fund the pipeline and maintain momentum, the Investment Manager is in negotiations to establish a revolving credit facility with a leading bank and the Company is intending to raise additional funds from investors in the near future.
As per its commitment to invest 50% of its management fee in shares in the Company, the Investment Manager intends to purchase shares in the market shortly.
James Robson, Chief Investment Officer of RM Capital Markets Limited, said:
"I am delighted at the progress we have made deploying the funds raised and at the momentum since the Company's IPO. One of our core priorities was to deploy the funds quickly and into attractive assets, and we have done exactly that. There is significant demand from businesses of varying sizes, and across multiple sectors to access funding solutions that meet their specific financing needs and I am confident in our ability to continue to source and progress our pipeline of secured lending opportunities that will enable us to deliver on our investment objective of generating attractive and regular and attractive dividends for our shareholders."
-End-
For further information, please contact:
RM Capital Markets Limited - Investment Manager
James Robson
Pietro Nicholls
Tel: 0131 603 7060
Nplus1 Singer Advisory LLP - Financial Adviser and Broker
Gillian Martin
James Hopton
Tel: 020 7496 3000
Bell Pottinger - Financial PR
Elizabeth Snow
Nick Lambert
Tel: 020 3772 2582
International Fund Management - AIFM
Chris Hickling
Tel: 01481 737600
PraxisIFM Fund Services (UK) Limited - Administrator and Company Secretary
Anthony Lee
Adam Smith
Tel: 020 7653 9690
About RM Secured Direct Lending
RM Secured Direct Lending Plc ("RMDL" or the "Company") is a closed-ended investment trust established to invest in a portfolio of secured debt instruments.
The Company aims to generate attractive and regular dividends through loans sourced or originated by the Investment Manager with a degree of inflation protection through index-linked returns where appropriate. Loans in which the Company invests are predominantly secured against assets such as real estate or plant and machinery and/or income streams such as account receivables.
For more information, please see https://rm-funds.co.uk/rmdl/investor-relations/