Icg-longbow Senior Secur... Share Discussion Threads

[hugepants] 29/5/2020 09:40

Announcement this morning of a new factsheet. Anyone find it?

[scburbs] 28/4/2020 09:53

I agree it reads confusingly and looks like its been spun to try and sound better.

The majority in this case appears to refer to 55% of the interest or a greater percentage of the loans by number. Both technically being a majority but not a good way to use this language as the reality of the statement appears to be that 45% of the interest is currently not being paid!

If they continue to pay the 1.5p quarterly dividend they will be partially paying it out of cash reserves rather than new cash receipts. From that perspective it is quite handy that the Meadows loan repaid shortly before lock down which does given them some flexibility, albeit reducing notional earnings.

[hugepants] 28/4/2020 09:08

Its unclear to me what they are trying to say. Paragraph 2 and paragraph 3 almost contradict each other unless I'm misunderstanding.

However they have £15M cash and no debt (against market cap £82M) and say

"..the Company has a satisfactory equity cushion on all of its investments and does not expect any shortfall in either total interest receipts during the term of each loan, or to capital repayments by loan maturity."

[scburbs] 28/4/2020 08:45

45% of the quarterly interest already not being serviced in line with original terms. Doesn’t mean it won’t be settled later, but that is higher than I would have expected with this portfolio.

[rambutan2] 14/4/2020 21:42

The management say...

Outlook
Following the portfolio changes concluded after quarter end, the Company’s loan commitments total approximately £115 million, of which circa £104 million has been drawn to date.

The Company and its investment portfolio are in a robust position to weather the challenges arising from the outbreak of the Coronavirus, given the diversity of underlying tenants and relatively low exposure to the most immediately vulnerable sectors such as travel, retail, leisure and hotels. Moreover the Company has access to cash and bank facilities of over £35 million and is well-placed to withstand disruptions and capitalise on any opportunities arising, such as lenders withdrawing from transactions.

Nonetheless we continue to act with extreme caution; no-one can predict with certainty the overall effects of the outbreak on the UK economy, property and lending markets, and we believe the bar for new investing should be set much higher as a result. We believe our longstanding philosophy of supporting properties and sponsors which can deliver income and value growth outside of market cycles and shocks remains the best way to proceed in a period of uncertainty.



And even more recently...

Recent developments and COVID 19 update

As stated in the Company's announcement of 10(th) March 2020, the GBP21.5 million Pentavia loan has been repaid in full. A new loan commitment of GBP7.75 million secured by an industrial estate in Merseyside has been completed of which GBP3.5 million has been drawn down. All borrowings on the Company's working capital facility, totalling GBP5.2 million, have been fully repaid.

As of 27(th) March 2020, the Group has cash balances of GBP15.1 million, of which approximately GBP9.9 million is committed against existing facilities, leaving the Group free, uncommitted cash balances of GBP5.2 million in addition to its available but undrawn GBP25 million working capital facility.

Against the backdrop of uncertainty caused by COVID 19 the Group has a strong cash reserve, ample liquidity and no borrowings. The pro forma LTV of 67.9% as set out in the latest Fact Sheet is supported exclusively by senior secured loans backed by a first legal charge over a diverse portfolio of UK commercial and residential properties, with no junior, mezzanine or structured credit positions. Whilst it will be some time before the full impact of Covid-19 is known, each of the underlying loans is subject to close monitoring and strong collateral. T he Investment Adviser is actively engaging with the sponsors and supporting them as needed to preserve performance of the underlying real estate assets in what are challenging market conditions.

The Board is in regular contact with the Investment Adviser to monitor portfolio performance, and the preparation of the Annual Report and Accounts for the Year Ended 31(st) January 2020 is progressing as planned.

[hugepants] 14/4/2020 11:15

Compared to the likes of SWEF this looks pretty good value at these levels. The link in post #97 compares the peer group. LBOW has a debt free balance sheet unlike some others.

Also

"Moreover, it is worth keeping in mind that while LBOW’s current portfolio is exclusively composed of senior secured loans with no exposure to mezzanine loans, both Starwood and RECI have significant exposure to higher-risk mezzanine investments, which for the former stood at 38.6% of the total portfolio at end-June 2019, while they made up c 34% of the latter’s top 10 investments at end-June 2019 (according to our estimates). Moreover, six of RECI’s top 10 investments are development projects, which also bear a higher risk."

[davebowler] 09/9/2019 09:44

Liberum;
Full dividend cover expected following new investments

Mkt Cap £119m | Prem/(disc) 1.2% | Div yield 6.1%

Event

ICG Longbow Senior Secured Property debt Investments has agreed a new £24.6m commitment to an affiliate of RoyaleLife, a provider of bungalow homes. The fund's commitment is part of a wider £142.7m facility alongside two other funds managed by the investment adviser.

The loan will be secured on a portfolio of 10 assets in the residential bungalow homes sector. The initial level drawings will be £20.3m with the remainder to be drawn as part of a capex facility.

Invested capital will rise to £112.5m following completion of the transaction. The company will also have £10m of undrawn commitments. Two further loan deals are due to complete in the coming weeks - a £15.3m loan secured on a hotel portfolio and £6.5m office loan. Following these expected investments, the fund will be fully invested and the revolving credit facility will be largely drawn. The credit facility will be paid back through new equity capital or loan redemptions. The company expects to achieve full dividend cover once fully invested.

Liberum view

The achievement of full dividend cover will come as a relief to shareholders. The dividend has not been covered since the quarter ending 30 April 2017. The portfolio transition to higher yielding loans is gathering pace following a slow period since approval of the change in investment policy in March 2017. Following the RoyaleLife loan, the weighted average coupon will be 7.06%. The fund will still need considerable upside from loan arrangement and exit fees in order to achieve full dividend cover the ongoing charges ratio has been c.1.9% for the last two years.

[jonwig] 20/11/2018 06:18

Edison have initiated coverage:

[davebowler] 10/9/2018 09:13

Liberum;
ICG-Longbow Senior Secured UK Property Debt Investments (Mkt Cap £127m)

1.0% Q2 NAV return

Event

ICG-Longbow's estimated NAV at 31 July 2018 was 100.05p per share. We calculate a NAV total return of 1.0% in the quarter.

There was relatively little portfolio activity in the quarter. The weighted average loan maturity is now 1.3 years. The company is in advanced negotiations with existing borrowers to extend loan term and the company is not expecting significant redemptions in the near term.

The manager is also seeking to put a working capital facility in place to enable new investments ahead of expected loan repayments.

Liberum view

We calculate a NAV total return of 4.5% over the past 12 months. Dividends were not fully covered during the year and we expect that to continue in the near-term until more of the lower yielding investments have been extended (on more favourable terms) or repaid. 71% of the existing portfolio has less than a year remaining to maturity. The stock trades on a 4.4% premium to NAV (5.7% dividend yield).

[jonwig] 26/7/2018 14:21

If there were a bad loan (always a risk) that should have been announced by now. Very remiss if it hasn't.

Lots of large trades today which I can't interpret.

[nk104] 26/7/2018 11:58

A sudden spike down to the 100p level. No news that I can see.

Must admit LBOW has been suitably boring for me, not much action and regular dividends.

[skyship] 25/10/2017 15:46

The placing was to raise minimum gross proceeds of GBP5 million in order to fund near term opportunities and to acquire the balance of the Quattro Loan.

"The price at which each New Share will be issued pursuant to the Placing will be 102 p/share. The Placing Price represents a premium of 2.0% to the latest published Net Asset Value of 99.96 pence per share as at 31 July 2017 (net of the 1.5 pence per Share dividend declared by the Company on 22 September 2017)."

They actually issued 8.8m to raise £9m...so well over-subscribed.

The Chairman then goes into the Market to buy 15k @ 102.25p for his SIPP.

All very positive...

[skyship] 04/9/2017 10:11

Sounds as though there will be a further issue shortly - presumably @ 102p again:

"These new advances would deploy the Company’s existing cash balance of circa £10.6 million, and the Board also anticipates being in a position to consider an equity fundraising under the approved placing programme to fund the additional balance required for these attractive new opportunities."

[skyship] 04/9/2017 08:14

Q2 FactSheet - NAV falls slightly from 101.86p to 101.46p. Otherwise all looks in order:

[jonwig] 07/8/2017 14:26

Thanks - but I can't find any reference apart from PW which I don't subscribe to. Their placing programme has been active since April (though no updates since?) so that would provide the funds.

[scburbs] 07/8/2017 13:48

Will be interesting to see if LBOW is invested in this vehicle, given the new investment policy.

"ICG-Longbow, Intermediate Capital Group’s specialist real estate asset management division, has announced the final close of its third senior debt vehicle, ICG-Longbow Senior Debt Programme Vintage III, at £370m."

hxxp://www.propertyweek.com/finance/icg-longbow-announces-close-of-370m-for-third-senior-debt-fund/5090818.article?origin=PWdailynews

[skyship] 13/7/2017 09:32

XD the 1.5p divi today; PD 4th August.

[skyship] 11/5/2017 14:14

XD 3.75p today...

[skyship] 27/4/2017 16:04

Following today's "Publication of Prospectus" news re 40m share placings as and when; this piece from the 11th Jan'17 RNS is pertinent:
================================================

The issue of any new Ordinary Shares under the Placing Programme will only be at a premium to the then prevailing NAV per Ordinary Share and will not therefore be dilutive to Shareholders.

When issued and fully paid, the new Ordinary Shares issued under the Placing Programme will rank equally in all respects with the existing Ordinary Shares, including the right to receive all dividends made, paid or declared (if any) out of the profits of the Company attributable to the Ordinary Shares by reference to a record date after their issue. The allotment and issue of Ordinary Shares under the Placing Programme will only be undertaken when the Investment Adviser has identified opportunities for the Company to make investments using the net proceeds of any such issue and the Board has approved such opportunity.

[skyship] 27/4/2017 07:27

Nice. Regular qtly 1.5p divi + a special divi of 2.25p:

[skyship] 20/3/2017 17:26

Incidentally, it's a good time to be buying LBOW as the Finals & the next Dividend Declaration are just one month hence at the end of April - 27th last year.

[skyship] 20/3/2017 15:05

Had to be patient, but finally bought a few today @ 102p...

[jonwig] 26/2/2017 09:54

Two significant holdings announcements on Friday:

Premier Fund Managers 8,500,000 to 11,000,000, 10.16%,

Close Asset Managers, 7,434,826 to 13,151,826, 12.15%

With such size, they can influence discussion on change of policy.

EDIT: Schroders have been selling down.

[skyship] 13/1/2017 13:53

Out of these at the moment, so the placing will perhaps provide an opportunity to get back in at c102p. Perhaps sensible to sell ahead of the Circular; though admittedly a strategy with pretty limited %age returns:
============================================

The Proposals

The Board will shortly be publishing a Circular expected to be dated 11 January 2017 which presents a number of proposals for:

(i) a Revised Investment Policy,
(ii) Continuation Vote ,
(iii) a Follow- On Continuation Resolution and adoption of the Proposed Articles, and
(iv) a placing programme