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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Biopharma Credit Plc | BPCR | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 0.876 | 08:52:50 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 0.874 | 0.874 | 0.878 | 0.876 |
| Announcement Date | Type | Currency | Dividend Amount | Ex Date | Record Date | Payment Date |
|---|---|---|---|---|---|---|
| 08/02/2024 | Special | USD | 0.012079 | 15/02/2024 | 16/02/2024 | 15/03/2024 |
| 08/02/2024 | Special | USD | 0.012079 | 15/02/2024 | 16/02/2024 | 15/03/2024 |
| 29/11/2023 | Special | USD | 0.02 | 07/12/2023 | 08/12/2023 | 05/01/2024 |
| 29/11/2023 | Special | USD | 0.0175 | 07/12/2023 | 08/12/2023 | 05/01/2024 |
| 10/08/2023 | Interim | USD | 0.0175 | 17/08/2023 | 18/08/2023 | 15/09/2023 |
| 20/04/2023 | Interim | USD | 0.0175 | 27/04/2023 | 28/04/2023 | 26/05/2023 |
| 22/03/2023 | Special | GBP | 0.01383 | 30/03/2023 | 31/03/2023 | 28/04/2023 |
| 13/10/2022 | Interim | USD | 0.0175 | 20/10/2022 | 21/10/2022 | 18/11/2022 |
| 13/10/2022 | Special | USD | 0.045 | 20/10/2022 | 21/10/2022 | 18/11/2022 |
| 16/08/2022 | Interim | USD | 0.0175 | 25/08/2022 | 26/08/2022 | 23/09/2022 |
| 27/04/2022 | Interim | GBP | 0.01389 | 05/05/2022 | 06/05/2022 | 31/05/2022 |
| 24/02/2022 | Interim | GBP | 0.013056 | 03/03/2022 | 04/03/2022 | 31/03/2022 |
| 04/11/2021 | Interim | USD | 0.0175 | 18/11/2021 | 19/11/2021 | 17/12/2021 |
| 12/08/2021 | Interim | USD | 0.0175 | 19/08/2021 | 20/08/2021 | 17/09/2021 |
| 26/05/2021 | Interim | USD | 0.0175 | 03/06/2021 | 04/06/2021 | 30/06/2021 |
| Special | USD | 0.002901 | 18/03/2021 | 19/03/2021 | 16/04/2021 | |
| 12/11/2020 | Interim | USD | 0.0175 | 19/11/2020 | 20/11/2020 | 18/12/2020 |
| 12/11/2020 | Special | USD | 0.0001 | 19/11/2020 | 20/11/2020 | 18/12/2020 |
| 12/08/2020 | Interim | USD | 0.0175 | 20/08/2020 | 21/08/2020 | 18/09/2020 |
| 14/05/2020 | Interim | USD | 0.0175 | 21/05/2020 | 22/05/2020 | 19/06/2020 |
| 20/02/2020 | Interim | USD | 0.0175 | 27/02/2020 | 28/02/2020 | 27/03/2020 |
| 20/02/2020 | Special | USD | 0.0128 | 27/02/2020 | 28/02/2020 | 27/03/2020 |
| 08/11/2019 | Interim | USD | 0.0175 | 14/11/2019 | 15/11/2019 | 17/12/2019 |
| 03/08/2019 | Interim | USD | 0.0175 | 15/08/2019 | 16/08/2019 | 20/09/2019 |
| 15/05/2019 | Interim | GBP | 0.013578 | 23/05/2019 | 24/05/2019 | 21/06/2019 |
| Top Posts |
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Posted at 09/2/2024 12:21 by speedsgh Q4 dividend announcement which includes another special div taking FY payment to 10.21 cents...-------------------- Dividend Declaration - 2.96 CENT PER SHARE DISTRIBUTION INCLUDES 1.2 CENT SPECIAL DECLARATION BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to declare an interim dividend in respect of the financial period ending 31 December 2023 of $0.02957930 per ordinary share, payable on 15 March 2024 to ordinary shareholders on the register as at 16 February 2024. The ex-dividend date will be 15 February 2024. The Company has chosen to designate the entire amount of this interim dividend as an interest distribution. Shareholders in receipt of such a dividend will be treated for UK tax purposes as though they have received a payment of interest. This will result in a reduction in the corporation tax payable by the Company. The $0.02957930 dividend comprises an ordinary dividend of $0.0175 and a special dividend of $0.01207930. The Company is currently paying and continues to target a 7 cent annual dividend per ordinary share. This will bring total dividends for 2023 to 10.21 cents including special dividends totalling 3.21 cents. |
Posted at 06/2/2024 10:43 by davebowler Liberum-Coherus to prepay 70% of loan Analyst: Shonil Chande Mkt Cap £937m | Share price $0.93 | Prem/(disc) -6.4% | Div yield 7.5% Event Coherus, BioPharma Credit’s fourth largest loan investment as at 31 December 2023, has announced plans to partially prepay $175m of the outstanding $250m principal balance under an existing loan agreement. BPCR, through its stake in the loan, is due to receive $87.5m, with the prepayment expected in Q2 2024. The residual balance on BPCR’s stake in the loan will be $37.5m. Coherus recently announced an agreement to divest its ophthalmology business to Sandoz for $170m, with the deal expected to close in H1 2024. The product in question, Cimerli, accounted for c.54% of Coherus’ revenues. Prepaying most of the loan will reduce Coherus’ expected annual interest payments by c.70%. Pharmakon Advisors, BPCR’s investment advisor, entered into a loan agreement with Coherus in January 2022. The facility provided Coherus with up to $300m, across four tranches, paying interest at 8.25% plus three-month LIBOR p/a, with a LIBOR floor of 1.00%. Loan agreement with Coherus –prepayment fees and make-whole summaries The following summary is based on the loan agreement with Coherus Prepayment fees: Before the third anniversary of the Tranche A Closing Date, the prepayment fee is 3.00% of the principal amount prepaid. After the third anniversary but before the fourth anniversary of the Tranche A Closing Date, the prepayment fee is 2.00%. Thereafter and before the Maturity Date, the prepayment fee is 1.00%. Make-whole amount: In addition to the prepayment fees, a make-whole amount will be payable for full or partial prepayment of a tranche before the second anniversary of the applicable funding. This amount is equal to the foregone interest from the date of prepayment through the second anniversary of the Tranche A Closing Date. Based on the available information, there is not likely to be any make-whole payment for the first two tranches advanced before April 2022. Liberum view We identified BPCR as one of our top picks in the recent model portfolio note. BPCR sits in a sweet spot by providing credit to established life sciences entities that are loathed to dilute their equity base. BPCR will be due prepayment fees from Coherus repaying. Assuming the deal closes in June 2024, we estimate the prepayment fee due to BPCR will be c.$1.75m, based on the $87.5m principal and the 2.0% prepayment fee due after the third anniversary. On a pro-rata IRR basis, we estimate the 70% principal repayment and associated interest paid/loans advanced amounts to a c.12% IRR. As at 31 December 2023, BPCR held cash of $212m. Across the ordinary dividends, special dividends, and share repurchases, BPCR is one of the most significant distributors within Alternative funds. Since the start of 2024, BPCR has spent $33.9m on share repurchases |
Posted at 12/1/2024 15:31 by davebowler Buyback Watch: BioPharma Credit (BPCR)Announced buybacks are back on the agenda after issuing an update on its LumiraDx (LMDX) loan. Over to broker Jefferies for a quick summary: “This announcement marks a successful recovery of BPCR's troubled loan to LMDX. The business being sold to Roche represents 81.5% of the total loan amount outstanding, but 117% of BPCR's current carrying value for its 50% share of the loan, so implying a small c.2% NAV uplift. We also note there could be a further recovery of value for BPCR and the other senior lenders upon liquidation of the company. Importantly, BPCR is likely to be able to resume share buybacks now it is no longer an insider, with the recent EGM circular highlighting $115m of cash available for repurchases (equivalent to c.9% of NAV), aimed at closing the discount into 5%. All together this points to some healthy upside to the current share price, with the shares currently trading on a 16% discount to NAV, not least because the recovery firmly validates the manager's process and the strength of security in protecting the principal value of the loan.” |
Posted at 02/1/2024 10:43 by davebowler Liberum-BioPharma Credit Wind down of LumiraDX and sale of assets to RocheAnalyst: Joachim KlementMkt Cap £859m | Share price $0.84 | Prem/(disc) -17.1% | Div yield 8.3%EventThe company announced that on 29 December 2023, LumiraDX appointed Andrew Johnson, Lisa Rickelton, and Lindsay Hallam of FTI Consulting as administrators for two of its subsidiaries that hold essentially all assets of LumiraDX. The administrators have entered into a sale and purchase agreement with Roche Diagnostics providing for the acquisition of LumiraDX's point-of-care diagnostics platform business for $295m. The sale is subject to antitrust and foreign direct investment approvals but will close as soon as these approvals are received. Until the approval, BioPharma Credit Investments V and BPCR Limited have agreed to provide up to $59.2m in funding for LumiraDX for the ongoing operations. Under the purchase agreement, Roche has agreed to reimburse the lenders for up to $55m in funds.With the appointment of the administrators, the loans of BPCR to LumiraDX are considered to be in default. The principal amount of the defaulted loans is $361.8m and, together with the accrued interest, is immediately due. Since LumiraDX is unable to pay the sum immediately, the loan will be satisfied from the assets sold as part of the wind-down. It is expected that shareholders and unsecured creditors will not receive any distributions and all distributions will go to secured creditors to pay for outstanding debt.Pharmakon Advisors has said that the information in this morning's announcement helped form the basis for the main assumptions reflected in the current valuation of the LumiraDx loan (and was reflected in the November NAV). The valuation of BPCR's investment was written down materially in October, but it is unclear at this stage whether further losses will be realised. The current discount to NAV on which BPCR currently trades provides plenty of downside protection in our view, however, with Lumira representing c.9.6% of NAV. |
Posted at 02/1/2024 09:43 by speedsgh UPDATE ON INVESTMENT - BioPharma Credit PLC (LSE: BPCR) notes the filing of a Form 6-K made on 29 December 2023 by LumiraDx Limited ("LumiraDx"), which is copied below in part for convenience and can be found in its entirety at: LumiraDx Form 6-K Report. Pharmakon Advisors, LP (the "Investment Manager") notes the information as set forth below helped form the basis for the main assumptions reflected in the current valuation of the LumiraDx loan (as set forth in the October and November 2023 monthly updates). The Investment Manager will continue to provide updates in due course, including with respect to the status of the acquisition and any further updates as needed to the valuation of the LumiraDx loan. EXPLANATORY NOTE Appointment of Administrators; Sale of Point of Care Diagnostics Business to Roche On December 29, 2023, LumiraDx Limited (the "Company" or "LumiraDx") announced that Andrew Johnson, Lisa Rickelton and Lindsay Hallam of FTI Consulting LLP have today been appointed as joint administrators (the "Administrators") of two of its subsidiaries, LumiraDx Group Limited and LumiraDx International Limited, which together hold substantially all of the assets of the LumiraDx group. The Administrators have not been appointed to any other subsidiaries of the Company. Following their appointment earlier today, the Administrators have entered into a sale and purchase agreement with Roche Diagnostics Limited ("Roche") providing for Roche's acquisition of certain of the LumiraDx group companies (the "Point of Care Diagnostics Companies") engaged in the operation of LumiraDx group's point-of-care diagnostics platform business and certain related assets (the "Transaction"). The Administrators have not been appointed to any of the Point of Care Diagnostics Companies. Pursuant to the Transaction, Roche is to acquire all of the Point of Care Diagnostics Companies for the sum of $295 million, subject to customary closing adjustments. The completion of the Transaction is subject to certain conditions, including antitrust and foreign direct investment approvals, and is expected to close once the antitrust and other regulatory approvals have been obtained and the conditions have otherwise been met. It is anticipated that all of the sale proceeds will be used to repay certain amounts outstanding under the Loan Agreement (as defined below), and that there will be no distribution to the Company or its shareholders from the sale proceeds of the Transaction. BioPharma Credit Investments V (Master) LP and BPCR Limited Partnership (the "Senior Secured Lenders"), as senior secured lenders of the LumiraDx group, have agreed to provide up to $59.2 million in funding for the LumiraDx group until the completion of the Transaction to, among other things, support the ongoing operations of the Point of Care Diagnostics Companies. Under the terms of the Transaction, Roche has agreed to reimburse the Senior Secured Lenders for up to $55 million of funding provided by the Senior Secured Lenders to the Point of Care Diagnostics Companies in the period to completion of the Transaction to support the ongoing ordinary course operations of the Point of Care Diagnostics Companies. The appointment of the Administrators and sale to Roche represent the culmination of LumiraDx's previously announced strategic review process led by Goldman Sachs & Co. LLC and follows extensive efforts to find a buyer for the business. The completion of the sale to Roche will allow the continued operation of the point-of-care diagnostics business under new strategic ownership. Expiry of Waiver Period; Petition to Wind-up In accordance with the terms of that certain Loan Agreement, dated March 23, 2021 (as amended from time to time, the "Loan Agreement"), by and among LumiraDx Investment Limited, one of the Company's subsidiaries as the borrower, the Senior Secured Lenders, BioPharma Credit plc, as the collateral agent, and the other credit parties named therein, the Waiver Period (as defined in the Loan Agreement) has expired as of today, December 29, 2023. As a result of the steps taken to appoint the Administrators to LumiraDx Group Limited and LumiraDx International Ltd, events of default under the Loan Agreement have occurred and the principal amount outstanding under the Loan Agreement of $361.8 million, together with all accrued interest and all other amounts payable under the Loan Agreement, is now immediately due and payable (collectively, the "Outstanding Amount"). LumiraDx Investment Limited is unable to pay the Outstanding Amount. The collateral agent (on behalf of the Senior Secured Lenders) has also issued a demand against the Company, as guarantor, for payment of the Outstanding Amount. As the Company does not have funds to pay the Outstanding Amount, it is anticipated that the collateral agent (on behalf of the Senior Secured Lenders) will in due course present a petition for the winding up of the Company with a view to having a liquidator appointed over it. The Company expects that there will be no assets available for distribution to its shareholders or the unsecured creditors of the LumiraDx group. No demand has been made or enforcement action taken against any other LumiraDx group companies. Delisting of Company Securities In light of the events described above, the Company intends to withdraw its appeal of the determination by the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") to delist the Company's common shares from The Nasdaq Global Market. As a result, the Company anticipates that Nasdaq will cancel the hearing that is currently scheduled for January 18, 2024, suspend trading of the Company's securities and file a Form 25-NSE with the U.S. Securities and Exchange Commission ("SEC"), which will remove the Company's securities from listing and registration on Nasdaq. This report on Form 6-K shall be deemed to be incorporated by reference into the Company's registration statements on Form S-8 (File No. 333-259874, File No. 333-264611 and File No. 333-271538), and the registration statements on Form F-3 (File No. 333-264609 and File No. 333-271624), and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently furnished." |
Posted at 29/11/2023 08:09 by smidge21 DIVIDEND DECLARATION3.75 CENT PER SHARE DISTRIBUTION INCLUDES 2.0 CENT SPECIAL DECLARATION BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to declare an interim dividend in respect of the financial period ended 30 September 2023 of $0.0375 per ordinary share, payable on 5 January 2024 to ordinary shareholders on the register as at 8 December 2023. The ex-dividend date will be 7 December 2023. The Company has chosen to designate the entire amount of this interim dividend as an interest distribution. Shareholders in receipt of such a dividend will be treated for UK tax purposes as though they have received a payment of interest. This will result in a reduction in the corporation tax payable by the Company. The $0.0375 dividend comprises an ordinary dividend of $0.0175 and a special dividend of $0.0200 The Company is currently paying and continues to target a 7 cent annual dividend per ordinary share. |
Posted at 01/11/2023 11:13 by davebowler Liberum -Routine passing of continuation resolution very likelyAnalyst: Shonil Chande Mkt Cap £885m | Share price $0.83 | Prem/(disc) -20.2% | Div yield 8.5% Event BioPharma Credit has traded at an average discount above 10% over the 12-month rolling period to 31 October 2023, triggering a continuation resolution. A general meeting must therefore be convened, proposing a continuation resolution by 31 December 2023. Liberum view We expect the continuation resolution to pass without incident. This is a vehicle with a strong track record (five-year annualised NAV total return of 9.4%), high distribution capacity, and the potential to significantly return capital via repurchases and deliver another special dividend. BPCR’s current inability to support its shares through repurchases is a result of having two observer seats on the LumiraDx board. C.98% of the portfolio has exposure to floating rate loans and the $0.07 dividend is comfortably covered, excluding the LumiraDx loan. BPCR is thought to have over $220m in cash following Reata Pharmaceuticals̵ BPCR last repurchased shares on 11 July 2023. Given the size of the current discount and BPCR’s capacity to invest a significant portion of its market cap into repurchases, there is potential for material NAV accretion. BPCR repurchased over $50m in shares last year, at a buyback yield of c.3.9%. Within Alternatives, this was the second-largest figure in absolute terms after Balanced Commercial Property (£58m). BPCR’s repurchases represented 16.1% of overall volumes last year (4.8% YTD) and 78% of volumes on the days it was active in the market. Once the LumiraDx loan is cleared up, we would expect a significant increase in share buybacks and the company is also expected to pay a special dividend this year, which it has done each year since 2017. |
Posted at 18/8/2023 13:28 by speedsgh Good news for BioPharma Credit as Biogen swoops on Reata - BioPharma Credit (BPCR), the specialist debt fund struggling with concerns over one of its big loans, is in line for a payday after US biotech company Biogen announced the acquisition of portfolio holding Reata Pharmaceuticals, which could net the investment trust returns of more than 70%, analysts estimate. In May, the £851m trust agreed a $137.5m senior secured loan to Reata over up to four payments; $62.5m has already been funded. BPCR will be recompensated for that sum, as well as fees for early prepayment. In an announcement on 31 July, the trust estimated the early repayment fees of 3% would total $15.5m if the transaction closed at the end of September, a sum that is likely to be higher given the trust anticipates completion in the following quarter, when it will have incurred more interest. The shares rose 1% to 0.85 cents on Monday as investors leapt at the first bit of good news since May, when the dollar-denominated trust flagged its second-largest investment, LumiraDx, which accounts for 12.8% of assets, as a problem loan. The shares had fallen 13% since their 0.97-cent peak this year in mid-May to 0.84 cents, representing a 14.6% discount to net asset value (NAV). JP Morgan Cazenove analyst Chris Brown estimated the gross uplift from prepayment fees and make-whole fees would add 0.8% to NAV after performance charges, based on the calculation that BPCR is likely to exceed the 6% hurdle given high interest rates. He added that the 16.9% discount to NAV at the end of last week was larger than the LumiraDx loans, reflecting that investors have priced in the worst, being a LumiraDx default. Floating rate loans, whose coupons have risen with interest rate rises, make up 98% of the portfolio, setting the trust on track for another special dividend, which it has paid out every year since launch in 2017. Maintaining an ‘overweight&rs Numis analyst Ewan Lovett-Turner said the positive news demonstrated BPCR’s approach, where the underlying assets it lends to have value to strategic buyers, and flagged the significant early prepayment fees it earns in the event of an acquisition. |
Posted at 24/5/2023 07:17 by mondex From CityWire:Concerns are rising around BioPharma Credit (BPCR) as the lender to US drugs companies reported ‘problem’ Pharmakon Advisors, which manages the £984m investment trust, made a $300m loan to diagnostics platform LumiraDx in 2021, half of which was funded by BPCR, representing 15% of assets, its fifth biggest of 12 loans. The debt matures in 2024 and is secured against LumiraDx’s assets, including the rights to its testing platform, point-of-care diagnostic systems, and its molecular technology. The size of the loan to the company is now causing nervousness as LumiraDx delivered revenue of just $22.2m in the first three months of the year, a steep fall from the $126m delivered in the same period in 2022, which was the final quarter of Covid-19-related revenues from the Omicron variant. It racked up a loss of $44.1m for the quarter. Shares in Nasdaq-listed LumriaDx have fallen 8% over the past five days, while BPCR’s 8%-yielding shares have shed 4% to stand at a 1% discount below net asset value. Over the past year, stock in LumiraDx shares has plunged 87%. The company plans to go back to the market to raise as much as $100m of additional capital this year, having raised around $840m on the stock market as of 31 March, plus an additional $52m in grants from the Bill & Melinda Gates Foundation. However, a capital raise last year saw the stock shed 20% of its value. Jefferies analyst Matthew Hose said a raise would come with ‘execution risk and would not be enough to cash cover the loan’. He noted the Nasdaq exchange has notified the company that its shares could be subject to delisting because it failed to meet the $1 minimum bid price. ‘Furthermore, even though the loan has a relatively modest fixed interest rate of 8%, we see a refinancing via a third-party lender as doubtful in the context of the current cash burn,’ said Hose, who downgraded BPCR from ‘hold’ to ‘underperform& ‘A more likely option, in our view, would be that Pharmakon and BPCR amends and extends the loan.’ The company is currently in the middle of a restructuring, which accounted for a large drop in operating expenses, although BPCR said additional restructuring announced in April is not factored into the accounts. ‘Additional restructuring activities are expected to reduce the global workforce by 40% with expense reductions of $36m per annum with the full impact from June 2023 onward,’ said the trust. A ‘problem child’ Numis investment trust analyst Ewan Lovett-Turner said it was ‘clearly disappointing to see a large investment…suf However, he said this was not a new problem but a ‘continuation of a trend seen throughout 2022 as Covid-19-related revenues declined for its point-of-care diagnostic systems’. ‘This has been a problem child for BPCR and its adjusted covenants in 2022 to reflect the changing environment,’ he said. However, Lovett-Turner said the trust had ‘never made a loss on a loan’ thanks to the strength of its underwriting, which is based on borrowers having assets to support the loan. ‘This has often led to troubled companies being acquired, which funds the debt repayment,’ he said. ‘Strengthening the cash position and balance sheet would be welcomed and we expect the results of the equity raise to be closely watched, we note the company has previously had some significant backing from investors such as the Bill & Melinda Gates Foundation. It will be also interesting to see whether there is further corporate action on the horizon.’ Stifel analyst Sachin Saggar said a concentrated loan book like BPCR is ‘always going to have moments where investors are unnerved if borrowers fall materially below expectations’. However, he said disappointing fund updates should not be a ‘bolt from the blue’ and should instead be ‘progressively priced into the NAV, as clearly borrower risk has increased since underwriting’. He noted that an investor call with LumiraDx focused on product growth and approvals, even in the Q&A section, with ‘no concern around balance sheet’ from investors. ‘It does not appear to us that despite Covid-19 revenues falling off a cliff the company is running into immediate issues, but also that investors would prefer this loan, which is 15% of NAV, to be repaid sooner rather than later,’ said Saggar. ‘This is likely to take some months and in the interim we expect the discount to widen, given we expect the loan to be marked at par.’ Launched in March 2017, BPCR has generated a five-year total shareholder return of 40% from the quarterly dividends it pays. |
Posted at 22/3/2023 09:06 by davebowler LiberumBioPharma Credit Strong income play Analyst: Shonil Chande and Joachim Klement Mkt Cap £1,018m | Share price $0.95 | Prem/(disc) -6.9% | Div yield 7.4% Event BioPharma Credit's NAV per share of 101.4 cents, as at 31 December 2022, represented an increase of 2.1% and a NAV total return of 13.9%. As at 22 March 2023, the investment portfolio comprises c.$1.1bn across 10 transactions, with a weighted average loan life of 3.7 years. Senior secured loans comprised 90% of the invested portfolio with the balance attributable to purchased payments. Within senior secured, 81% are floating-rate loans and 19% are fixed-rate loans. BPCR held cash of $333m at 31 December 2022. BPCR made five investments totalling $665m in FY22, the largest being $325m that was funded to Collegium. Cash totalling $830m was received from five repayments, amortisation payments and the BMS purchased payments. Liberum view Returns in 2022 were well-above BPCR's medium-term annual target of 8-9% (+8% annualised from inception in Mar-17, assuming reinvestment of dividends) and the FY23 dividend is expected to be comfortably covered. The proportion of floating-rate senior loans increased from 46% to 81% in the year. While this is a strategy built around concentrated positions, investments are de-risked by the loan investments (predominantly secured) being to established companies with approved commercial-stage products. Collateral values are assigned only to approved products. The nature of BPCR's strategy means periods of high undeployed cash. The manager remains confident of reinvesting the proceeds given the significant capital needs in the sector. BPCR operates in an attractive area of the debt market where large dedicated lenders are absent. It invests in predominantly secured loans, with counterparties that have approved, commercial-stage products. 97% of BPCR's investments since launch have comprised senior corporate loans and senior royalty loans. Loans are typically structured to offer protection against cash drag from repayments in the form of prepayment fees and make-whole penalties. This was demonstrated by BPCR’s ability to pay a special dividend last year, despite the high level of prepayments. Including the special dividend, BPCR paid total dividends in excess of 13 cents, representing a near 14% yield. We believe the company is well set to deliver further special dividends in 2023, with the ordinary dividend well covered and the portfolio currently generating an 11.7% gross yield, 270bps higher than this time last year. We view the current near 7% discount to NAV as particularly attractive, given the long-term track record of the manager and the strong discount control mechanisms in place (c.$52m of buybacks in 2022). |
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