Rm Infrastructure Income Share Discussion Threads

[rimau1] 23/4/2024 12:15

Sold out this morning for a nice 6 month 1000bps return. Feels like it could take longer to sell down the loan book, from reading the outlook it certainly felt less positive to me and the recent rerate here means the discount to NAV has narrowed. Prefer Gabi for a debt wind down and above inflation returns on a 2 year view.

[starpukka] 19/2/2024 16:08

As a holder, I have been informed this morning that my holding will be "removed in due course". Are we assured of the next divi; paying on 29/3 ? And even if we are-@ 6% down currently-I am wondering if it may be better to sell up now ?

[cwa1] 15/1/2024 08:00

Better than bad news :-)

RM Infrastructure Income Plc



("RMII" or the "Company")



LEI: 213800RBRIYICC2QC958



Portfolio Update


RMII provides an update on investment loan reference #68, a 79 beds student accommodation located in city centre of Coventry, UK - wholly owned by the Company.

The Company has been pursuing a legal claim against the former main contractor since September 2022 via an adjudication process. On the 2nd of January 2024, RMII was successfully awarded circa £1.2m by the adjudicator (or circa 1 pence per ordinary share), with circa 90% of said sums now having been received in cleared funds.

Thomas Le Grix de La Salle, Portfolio Manager for RMII "The RM Funds Team have been pro-actively working in recovering value for our shareholders, and after many months of hard work it is very pleasing to be able to deliver a positive outcome for our shareholders."

[catch007] 19/12/2023 17:09

Virgin Hotel Glasgow Closure

The decision for Virgin Hotels Glasgow comes just a week after The Scotsman reported the owners of the building had entered an administration process


Virgin Hotels Glasgow closes with immediate effect - four months after opening - as staff escorted from building

Virgin’s premier hotel in Glasgow is set to shut with immediate effect – just four months after first opening.

Staff were told in a morning meeting on Tuesday before being escorted from the building.

The 242-bedroom hotel on the Broomielaw was due to close for trading on Tuesday. The move comes less than a week since The Scotsman first reported that Lloyds Development Limited – the company that owns the landmark building – has entered an administration process.

Staff told The Scotsman they were left surprised and shocked when the announcement was made.
On November 14, a Virgin Hotels spokesperson had told this newspaper: “We can confirm an administration process has started for Lloyds Development Limited, the current owner of Virgin Hotels Glasgow. Geoff Jacobs and Blair Nimmo of Interpath Advisory have been appointed as interim managers of Lloyds Development Limited. It is, however, very much business as usual for the hotel and our team, and we look forward to continuing to welcome guests and build on the hotel’s success.”


A statement released by union Unite Hospitality on X on Tuesday reads: "Our members at Virgin Hotels Glasgow have just been informed that the hotel is to close with immediate effect six days before Christmas.

"The CEO flew in from the US, but couldn’t even answer whether workers will get paid for hours worked."

Virgin Group had on Monday made an approach to buy Virgin Hotels Glasgow from the owner, Lloyds Development Limited, as part of the administration process.

It is understood the company was told the lender was choosing to pursue a sales process in the hope of getting a better offer and that will have an impact on employees, suppliers and guests. Each Virgin hotel is owned independently and operated under a hotel management agreement.

The company that owns the hotel building is part of a limited liability partnership of four designated members.

They are Richard Diamond and Rishipal Singh alongside Lloyds Development Ltd with a registered address in Guernsey and Moreply Ltd, registered in London. All four partners were appointed on 18 May 2017. The partnership was placed into administration on 30 November with interim managers appointed to the company that owns the Glasgow hotel building.

A spokesperson for the joint interim managers said: “Blair Nimmo and Geoff Jacobs of Interpath Advisory were appointed on December 1, 2023 as Insolvency Practitioners to Lloyds Developments Limited, which owns the property located at 246 Clyde Street in Glasgow. They have not been involved with the trading of the hotel at this address. The interim managers are disappointed for everyone involved with the insolvency.”

Virgin Hotels Glasgow was initially scheduled to launch in summer 2022 before being delayed until December last year, then eventually opening the lower floors and welcoming guests to some of the projected 242 bedrooms in August. The upper floors and suites of the hotel were not complete when the hotel opened.

Virgin Group said last week the property had performed as expected since opening.

[smidge21] 30/11/2023 14:21

...alongside VSL

[smidge21] 30/11/2023 14:18

I still haven't found any estimate from Manager of dissolution costs.I continue to hold for the gradual release of value

[skyship] 30/11/2023 13:24

Worth recalling what Smidge posted in early Sept. - P. No. 31 above

"With the move to wind-up, it is worth noting that, over the next 12 months, two-thirds of the portfolio investments will mature. The current average coupon of the outstanding investments (as at end July) was 9.5%. As assets mature, this rises to 9.7%, this time next year, then slips to 8.1% in early 2026 before lifting to above 11%. Of course not all coupons may be paid and not all capital returned. There - will be dissolution costs - have seen no estimate - to absorb"

[cwa1] 30/11/2023 13:19

Yes, other people on this thread apart from your good self :-)

Patiently waiting for happier times...

[skyship] 30/11/2023 12:12

Ahh - so there is someone else on this thread!

rimau - yes indeed. an answer in the affirmative it would seem.

[rimau1] 30/11/2023 07:54

And they answered your $64,000 question! I didn't however see a forecast realised nav in the document?

[skyship] 30/11/2023 07:14

Update reads well - accelerated wind-down with "a significant amount of capital returned during 2024"

Incidentally, XD today - 1.625p

[skyship] 29/11/2023 13:48

"...the Board now expects to publish a shareholder circular by the end of November 2023 to convene a general meeting at which it will seek approval from shareholders for the Managed Wind-Down and any related matters required to facilitate an orderly realisation."

RNS tomorrow then!

[skyship] 15/11/2023 09:43

Ahh - wind-down document due "by the end of November".

When we see that we should more fully reflect the underlying value here.

[skyship] 26/10/2023 14:04

Some volume today. 240k bt at c69p; 50k sold @ 68p.

A useful tap to buy into ahead of the wind-down document tomorrow or Monday.

[skyship] 26/10/2023 09:52

Perhaps those with more knowledge of the background to this company can answer this.

I see we have 36 investments totalling £119m with an average maturity of 1.53yrs.

But c24% of those maturities extend to 2.5yrs, even one as far out as 3.38yrs.

So, the $64,000 question; can these be readily sold on at a slight discount for an earlier redemption?

[skyship] 26/10/2023 09:18

Just bought an initial stake at 69p - a lower price than anticipated.

[skyship] 26/10/2023 09:15

So, what are our guesses here.

Perhaps a 2yr wind-up with occasional compulsory redemptions. Total return of, say, 85p would deliver a c21% return over that time.

Add in possible interest & the return could easily exceed 90p.

Call it 90p and the return would be c28%.

Anyone any updated thoughts on possible timings and returns?

[cwa1] 16/10/2023 07:12

Post period end, the Company successfully completed the prepayment
at par of investment loan #82 and #83, receiving c.GBP7.8m.
Given the outcome of the Board's strategic review and the resulting
proposed managed wind down recommendation, which will be put
to a Shareholders' vote in November 2023, there will be no new
investments (save for drawdowns against committed facilities)
unless the Board considers that doing so will maximise returns
to shareholders in the timeframe in which the Company will otherwise
be dealing with the managed wind down.
As such, available free cash is currently being utilised in repayment
of the outstanding leverage facilities. During the reporting
period, the RCF was fully repaid with a GBP2.2m repayment and
the Term Loan saw a GBP1m repayment. Post period end, a further
GBP5.8m was repaid on the Term Loan with a current outstanding
balance of c.GBP5.2m. We anticipate that by end of Q4 2023, the
TLB will have been repaid in full.

[cwa1] 07/9/2023 13:08

You're just showing off now :-))

[ramellous] 07/9/2023 13:07

Especially when I topped up yesterday :-)

[cwa1] 07/9/2023 12:10

Always nice to see a stock ahead on XD day :-)

[jong] 07/9/2023 09:49

XD today. 1.625p per share payable on Fri 29 Sep.

[smidge21] 06/9/2023 08:01

With the move to wind-up, it is worth noting that, over the next 12 months, two-thirds of the portfolio investments will mature. The current average coupon of the outstanding investments (as at end July) was 9.5%. As assets mature, this rises to 9.7%, this time next year, then slips to 8.1% in early 2026 before lifting to above 11%. Of course not all coupons may be paid and not all capital returned. There - will be dissolution costs - have seen no estimate - to absorb

[jimbox1] 31/7/2023 09:47

". . . the Company confirms that it will not make any new investments, save where it is required to preserve the value of an existing investment or where further capital is being drawn against an existing commitment or facility, with cash received from maturing loans used to continue to reduce the Company's leverage and buy back shares as appropriate."

Today's announcement of no new investments implies that the directors are managing a gradual winding up the company. Perhaps this is the best way to narrow the discount to net asset value.