Icg-longbow Senior Secur... Share Discussion Threads

[hugepants] 16/1/2023 08:37

So why didnt LBOW update the shareholders? That was a newspaper report that even had the value of the loan wrong (16.2M instead of 15.2M)

[andy246] 16/1/2023 08:28

On Southport hotel, the administrator announced in Dec-22 that LBOW as first charge holder should expect a significant discount on its loan (did not give an estimate), with no recovery on unsecured claim. That 96% LTV is no longer relevant in a distressed sale process

[hugepants] 16/1/2023 08:16

Well you'd think the Southport hotel would be underwater. LTV was 96% at end Oct. Not sure how much assets in leisure are down since then but offices and retail were down 12% last quarter. Industrial was 20% but lbow don't have any of these. Nav was 66.5p. all the other loans were 56-69 LTV so they shouldn't be in danger unless there is another couple of quarters of similar falls . Current share price discounts a lot imo.

[andy246] 16/1/2023 08:13

Has anyone seen the anonymous report that the company is referring to in today's RNS?

[hpcg] 13/1/2023 15:34

Well it is winding up and with capital returns, so the share price will go to stump before delisting.

[davebowler] 13/1/2023 15:29

Big contrast between this and RECI!

[hpcg] 07/12/2022 12:23

It was an interesting read on UK property as a whole.

[stemis] 07/12/2022 09:23

Quarterly fact sheet just issued.

hxxps://www.lbow.co.uk/~/media/Files/I/ICG-Longbow/documents/factsheet/2022/fact-sheet-quarter-to-31-october-2022.pdf

Comment re Bliss Hotel

During the period we appointed administrators over the borrower of the Southport loan, following a material breach in the LTV covenant. We believe taking this enforcement action will accelerate repayment of the loan and consequently the return of capital to shareholders. The asset continues to trade as normal and a sales process is ongoing. As at quarter end we do not believe any impairment provision is required

[stemis] 05/12/2022 15:34

Even if they recovered nothing re Bliss (which is probably unlikely) NAV is 54p a share

[hugepants] 05/12/2022 14:31

This doesn't sound too positive re the Bliss hotel. Refers to secured lender and charge holder. Charge holder is Longbow but are they also referring to longbow when they mention the secured lender

[hugepants] 17/10/2022 12:29

"Following the period end the Investment Manager has received an updated valuation which puts the Company's exposure at 96% LTV, in breach of covenant. However, the Sponsor is progressing an offer for the asset in excess of this valuation and which would see the loan repaid in full. While there is no assurance this will complete, the Company has reserved all its rights in respect of the covenant breach and has taken steps to accelerate repayment."

Yes the Bliss hotel is the only one with tight LTV cover. The other 4 are between 55% and 70%. Still hoping for a 20%+ return from here. NAV 66p

[loglorry1] 14/10/2022 07:33

Yes keys to Bliss being handed back to LBOW. I guess they will now sell it for what they can get. Hopefully over £15m.

[jeff h] 13/10/2022 11:34

No position here, but noticed:-

[loglorry1] 08/10/2022 09:55

hxxps://www.liverpoolecho.co.uk/news/liverpool-news/massive-city-region-investment-new-25208363#amp-readmore-target

[andy246] 12/8/2022 11:24

Good to see Almitas Capital is on board.
We should see at least 1 property sale (of the 3 properties currently for sale) by the end of September, followed by a capital repayment. I wonder how long it will take to resolve the Southport loan (86% LTV)

[loglorry1] 02/8/2022 12:51

Altimas are wind up specialists.

[hugepants] 02/8/2022 12:17

New holder, Altimas Capital, with 5.24%

[hugepants] 25/7/2022 11:32

Yes the discount now looks too high at approx 14% given company is being liquidated

[wozzitworthit] 21/7/2022 13:19

andy246

Thanks for that link

It crossed my mind a while back to perhaps buy more of these (I think someone had said IRR would be around 10% at that time ), but I never went with that thought

I am now seriously thinking of going ahead with (for me) a reasonable sized investment, as even with a 40% discount on Southport, the return should still be in double figures.

A useful park for some cash I have sloshing around doing nothing

Woz

[andy246] 21/7/2022 10:44

Pandora Capital has posted a helpful summary of LBOW:
www.pandora-capital.com/LBOW.html

It seems only 1 loan is problematic (Southport), but potential losses on this loan are quite limited (only 2.3p per share if the underlying property is sold at a 30% discount to the most recent valuation as of Q1 2022).

IRR at the current share price is estimated at 20%+ before any credit losses on Southport.

[loglorry1] 02/6/2022 07:19

The YTM is around 10% but it depends on wind up costs, time to repay loans, any defaults or impairments, your tax status etc.

[hpcg] 01/6/2022 20:30

You'll have to do your own calculations I'm afraid apollocreed. All the information is available but no-one can tell you what rate of return is acceptable to you.

[smidge21] 01/6/2022 13:31

Look at a recent factsheet and you'll see the profile of asset sales that complete the winddown process

[apollocreed1] 01/6/2022 13:23

According to HL, this Trust is trading on a 15.75% discount to NAV. They also state that the yield is 18.5% but that's probably wrong or based upon previous capital repayments. Does anyone have an idea what the likely yield will be on this in the future and if it's worth a buy? Thanks.