|Gli Finance Zdp
||EPS - Basic
||Market Cap (m)
Gli Finance Zdp Share Discussion Threads
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SME Loan Fund (Mkt Cap £49m)
Proposed change of manager and secondary placing
The SME Loan Fund is in discussions to appoint SQN Capital Management as investment manager of the fund which is conditional on a secondary placing of GLI Finance's 48% stake in the fund. If the secondary placing is not completed, the directors will propose an orderly realisation of SMEF's investments and return of surplus capital to shareholders via mandatory redemptions.
GLI Finance is seeking to place its stake in company at 90p per share (3.2% discount to the current price and 9.6% discount to NAV) which would value its holding at £22.7m. The proceeds would be used to repay the £14.9m syndicated loan on GLIF's balance sheet which expires on 15 March 2017.
If the secondary placing is successful, the investment policy of the fund will be amended to focus on wholesale lending, trade and receivable finance and collateralised lending opportunities. The target dividend will be rebased to 6.25p or an annual yield of 6.3% based on the NAV at 31 January 2017. SQN will be entitled to a 1% management fee and a 1% structuring fee on new investments. Shareholders will have the option to consider the future for the company if the shares trade at more than a 10% discount over any three-month period and a continuation resolution will be proposed if the net assets are below £250m at 31 December 2019.
Somerston Group (28% holder of SMEF) has indicated it will support the proposals.
This would appear to be a beneficial solution for all parties as the fund is sub-scale and the appointment of SQN Capital is likely to improve the company's ability to raise further capital given the manager's track record from SQN Asset Finance. For GLI Finance, the sale of the SMEF stake would allow the company to simplify the company structure and repay short-term debt. We estimate the gross cover on the GLIF's ZDP shares (which have a gross redemption yield of 10.1%) would rise from 3.1x to 3.9x on a pro-forma basis.|
|Liberum re GLIF £7m placing
GLI Finance Ltd. (GLIF) has announced its intention to raise gross proceeds of £7.1m through the placing of 23,020,560 new ordinary shares. The issue is fully underwritten by Golf Investment Ltd, who will subscribe for approximately 75% of the placing (17.7m placing shares). The remaining 25% or 5.4m shares are to be placed with relevant persons as identified by the bookrunner and to the extent that this portion of the placing shares is not fully taken up, Golf will also subscribe for the balance. The placing price of 31p per share represents a 14% premium to the 8 August closing price and a 15% discount to the last published NAV (on a ex-income basis). It is expected that the new shares will be admitted to trading on AIM on 15 August 2016.
In relation to the dividend policy, GLIF has confirmed that it will pay a 2.5p dividend for 2016. From 2017 the company will only pay a dividend when fully covered by the financial year's cash earnings. The company intends that it will continue to pay dividends to holders form 2017, but this change is to enable the company to take advantage investment opportunities and to fund growth of investee platforms, enhancing shareholder value in the longer term rather than focusing on short term income.
The company currently trades at a 28.4% discount to NAV.|
|They could, only if all the assets of GLIF are worth zero. unlikely i would say
I think this was badly marketed to investors and i guess not fully placed (reading what happened recently at the management level at glif..), so could go down further|
|Batches being sold for 99.5p now
could these go to zero?|
my retirement fund
|am i right to say that the yield here is 7%ish at 100.50 traded price ?
is there a shareholder list available on this?|
|Any one in then?|
my retirement fund
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