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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Marble Point Loan Financing Limited | LSE:MPLF | London | Ordinary Share | GG00BF1Q4G54 | ORD SHS NPV |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.61 | 0.57 | 0.65 | 0.61 | 0.61 | 0.61 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Trust,ex Ed,religious,charty | -20.62M | -25.21M | -0.1689 | -3.61 | 91.03M |
TIDMMPLF
RNS Number : 0769R
Marble Point Loan Financing Limited
12 June 2018
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/0769R_1-2018-6-12.pdf
12 June 2018
MARBLE POINT LOAN FINANCING LIMITED
Q1 2018 Quarterly Update AND financial statements
The Board of Directors (the "Board") of Marble Point Loan Financing Limited (the "Company") is pleased to announce that the Company's unaudited financial statements for the quarter ended 31 March 2018 and inaugural quarterly update letter of Marble Point Credit Management LLC, the Company's investment manager, are now available on the Company's website, www.mplflimited.com.
Dear Shareholders:
We are pleased to share this inaugural Quarterly Update Letter for Q1 2018. Going forward, we intend to use this letter to provide shareholders with updates on Marble Point Loan Financing Limited ("MPLF" or the "Company") and the markets in which Marble Point Credit Management LLC ("Marble Point" or the "Investment Manager") participates. However, for this inaugural letter, we also wish to highlight key aspects of our investment strategy and philosophy as well as communicate the key shareholder value performance metrics that we are focused on over the long term.
On 13 February 2018, MPLF raised $42.5 million of gross proceeds in its IPO through the issuance of 42,500,001 new ordinary shares at $1.00 per share. This capital augmented MPLF's existing pre-IPO NAV of $163.2 million (all existing investors converted to 163,215,892 ordinary shares concurrent with the IPO), resulting in a post-IPO NAV of $203.7 million and 205,716,892 ordinary shares outstanding.
Marble Point and its affiliates increased their already significant investment in MPLF by investing an additional $3.6 million in the IPO, taking the total investment by Marble Point and its affiliates in MPLF post-IPO to $15.5 million (or 7.5% of the shares outstanding).()
We are proud to have successfully completed the IPO despite a period of significant volatility in the equity markets - with the Dow Jones Industrial Average falling by over 1,000 points on each of 5 and 8 February 2018 and the FTSE 100 Index falling by 4.8% from the end of January through 8 February 2018. The loan market was largely unaffected by the equity market volatility as the Credit Suisse Leveraged Loan Index ("CSLLI") was only down 4 basis points from the end of January to 8 February 2018. As of the date of this letter, MPLF has invested the IPO capital raised.
We appreciate the trust and confidence that existing and new MPLF shareholders have placed in Marble Point and look forward to delivering on our stated objectives.
INTRODUCTION
Investment Objective, Strategy and Philosophy
The investment objective of MPLF is to generate stable current income and to grow NAV by earning an ROE in excess of the amount distributed as dividends. MPLF targets a low to mid-teens ROE over the long term.() The Company seeks to achieve its objective primarily through exposure to a diversified portfolio of U.S. dollar denominated, broadly syndicated floating rate senior secured corporate loans owned via CLOs and related vehicles managed by Marble Point.
Marble Point employs a disciplined methodology that seeks to invest in loans with a meaningful margin of safety based on the Investment Manager's assessment of a credit's loan-to-value ratio. We act with strong credit conviction and seek to build or preserve par (i.e., principal) value in our portfolios through relative value analysis and active management.
As the demand for loans continues to exceed the supply (leading to spread compression and more flexible terms for borrowers), investment discipline, strong credit conviction and not stretching for yield take on even greater importance. In our view, the cost of this discipline is near-term yield, not long-term yield and we believe that the defensive nature of MPLF's loan portfolio leaves shareholders well-positioned to benefit from future loan price volatility through our active management and relative value approach.
Dividend Policy and Targeted Dividends
It is well understood by Marble Point that an investment company must earn its dividend or the total return will eventually suffer (i.e., if dividends paid exceed net income over the long term, NAV will decrease). As such, we set a long term dividend policy with an initial targeted 8% annual dividend (payable quarterly) during MPLF's first year as a public company.(2) Thereafter, MPLF's Prospectus communicates the intention to increase the dividend to 10% in the second year post-IPO. We believe the 8% annual dividend for the first year post-IPO is well supported by the existing pre-IPO portfolio, and allowed for an appropriate amount of time to deploy the IPO proceeds into income generating investments. Based on the expeditious deployment of the IPO proceeds, we believe that the Company is on track to achieving the 10% targeted annual dividend rate noted in the Prospectus in its second year post-IPO.((2)
Going forward, we expect MPLF to declare quarterly dividends each January, April, July and October with a payment date as of the last business day of those months.
Shareholder-Friendly Structure
We believe MPLF has a fee structure that is among the most shareholder friendly in the market. Specifically, MPLF does not pay Company-level management fees on assets that are invested in Marble Point managed investment vehicles which customarily have vehicle-level fees, such as the CLOs and the Funding Subsidiary.(3)
With respect to its investments in Marble Point CLOs and the Funding Subsidiary, the management fee expense borne by the Company as an investor in those vehicles is capped at 40 basis points of total assets via fee participations.((4) This means that, for its investments in Marble Point CLOs, MPLF receives a rebate of CLO-level management fees that exceed 40 basis points (to date, this rebate has been up to 20% of CLO management fees), leading to incremental cash flow on the Company's investment in a CLO's equity tranche.
As an example, MPLF acquired 50.6% of the equity in Marble Point CLO XII on 22 May 2018 (a $22.1 million investment). Based on MPLF's preferential fee arrangement, MPLF and its affiliates are rebated 20% of the 50 basis points of management fees charged by the CLO that are attributable to their 59.5% ownership of the CLO equity tranche such that MPLF effectively bears only 40 basis points of management fees. Third-party investors in the 40.5% of minority equity in this CLO bear a full 50 basis points of management fees.
Moreover, MPLF does not bear any management fees at either the Company or vehicle-level on the $31.4 million of CLO debt, loan accumulation facilities ("LAFs") and fee participations and other assets owned by the Company as of 30 April 2018. As a result, 15.0% of MPLF's total assets were not subject to any management fees whatsoever as of such date.
Key Shareholder Value Performance Metrics
In terms of delivering value to shareholders over the long term, we are focused on three key performance metrics:
Shareholder Value Performance Metrics 1) Earning Net Investment 2) Growth in Net 3) The potential Income ("NII") plus Asset Value per share, to grow the dividend Realized Gains / through deploying over time (Losses) per share retained earnings in excess of dividends at a return in excess per share of the dividend rate -------------------------- ------------------------ ----------------------
As of 30 April 2018, the weighted average effective yield on the Company's equity investments in Marble Point CLOs was 15.3%. It is also worth highlighting that this effective yield is "loss adjusted" in that takes into account assumptions for future default and recoveries.
Reporting and Transparency
We are committed to regular, clear and transparent communications with shareholders and expect MPLF to be a market leader in the following areas:
Financial Reporting
Although MPLF is only required to disclose financial statements on a semi-annual basis, the Company discloses quarterly financial statements.
Portfolio Transparency
In addition to the summary statistics in the Monthly Reports posted to the website each month, the Quarterly Update Letter provides look-through detail regarding MPLF's exposure to each underlying loan within the Company's portfolio (see Appendix A).
Investor Communications
Beginning with the quarter ending 30 June 2018 (which will be the first full quarter for MPLF as a public company), we intend to hold quarterly conference calls to discuss the Company's financial results for each quarter.
MPLF UPDATE
Performance
From 13 February 2018 through 30 April 2018, the Company's NAV total return was -0.19%. For this same period, the CSLLI, the ICE BAML HYI and the S&P 500 registered total returns of 1.06%, 0.68% and -0.30% respectively.(5)
Total Returns(5)
Cumulative Feb-18 Mar-18 Apr-18 Since IPO ---------------------------- ------ ------- ------ ---------- MPLF NAV per Share 0.02% (1.14%) 0.90% (0.19%) ---------------------------- ------ ------- ------ ---------- Credit Suisse Leveraged Loan Index ("CSLLI") 0.25% 0.32% 0.49% 1.06% ---------------------------- ------ ------- ------ ---------- ICE BofAML US High Yield Index ("ICE BAML HYI") 0.63% (0.64%) 0.68% 0.68% ---------------------------- ------ ------- ------ ---------- Standard & Poor's 500 Index ("S&P 500") 2.18% (2.69%) 0.27% (0.30%) ---------------------------- ------ ------- ------ ----------
MPLF's total return for the period was below our long-term expectations and was driven primarily by:
-- Market-wide loan spread compression
- From December 2017 through April 2018, the spread on the CSLLI fell from LIBOR + 357 to LIBOR + 347 basis points and the weighted average spread on MPLF's portfolio fell from LIBOR + 354 basis points to LIBOR + 342 basis points (on a look-through basis to the portfolio's underlying loans).(6)
- Spreads on CLO debt increased modestly during the period based on significant supply of new CLOs and CLO equity discount rates widened modestly as well.
-- The Funding Subsidiary was not yet meaningfully ramped and was "over-equitized"
- From December 2017 through April 2018 the Funding Subsidiary increased its loan exposure from $36.9 million to $121.7 million. As a reminder, the Funding Subsidiary has a revolving credit facility (the Funding Subsidiary Facility) that provides 80%/20% debt to equity financing for a diverse portfolio of loans. As of 30 April 2018, the Funding Subsidiary had $38.9 million of equity capital supporting the $121.7 million of loans. Hence, since the IPO, the Funding Subsidiary has been over-equitized and the net interest income it generated was limited. Post 30 April 2018, approximately $12.0 million of the over-equitized amount was withdrawn in order to fund investments in other assets and the Funding Subsidiary loan portfolio is currently essentially fully ramped given its equity base. As a result, we expect the net interest income and ROE generated by the Funding Subsidiary to be higher from this point forward.
We highlight that the credit quality within the underlying loan portfolio remained strong since year end. In addition, MPLF built 8 basis points of par value in its CLOs and CLO NAVs increased by 2.6% during the period. In addition, as of April 2018, MPLF has only a nominal 6 basis points of exposure to defaulted borrowers and 101 basis points of exposure to loans with market prices below 80 (as compared to the 1.73% for the market).(6)
(5) (6) (7) Please see the important disclosures and notes beginning on page 19.
CLO NAV and Par Build(7) : Percentage Change fom 31 December 2017 through 30 April 2018
CLO Par Build CLO CLO Size CLO NAV (% Change) (% Change) ================== ======== ================== ============= MP CLO III $401.5 1.3% (0.01%) ================== ======== ================== ============= MP CLO IV $398.7 0.8% (0.04%) ================== ======== ================== ============= MP CLO VI $397.0 1.4% 0.15% ================== ======== ================== ============= MP CLO VII $539.6 2.8% (0.07%) ================== ======== ================== ============= MP CLO VIII $502.7 2.6% 0.14% ================== ======== ================== ============= Marble Point CLO X $501.5 1.6% 0.13% ================== ======== ================== ============= Marble Point CLO XI $501.2 5.3% 0.13% ================== ======== ================== ============= Weighted Average 2.6% 0.08% ------------------ -------- ------------------ -------------
Source: Marble Point Analysis
NAV Attribution
As illustrated below, the Investment Income during the period was roughly equal to the Unrealized Gains (Losses) during the period.(8) The payment of dividends on 30 April 2018 and operating expenses accounted for the decrease in NAV.
Supplemental NAV Attribution(8)
NAV per share, at admission (net of IPO commissions and costs) $0.990 ======================================== ======== Investment Income $0.025 ======================================== ======== Expenses $(0.004) ======================================== ======== Realized Gains (Losses) $0.002 ======================================== ======== Unrealized Gains (Losses) $(0.025) ======================================== ======== Dividends $(0.010) NAV per share as at 30 April 2018 $0.978
Cash Distributions
The Marble Point CLOs make quarterly cash distributions during January, April, July and October. In Q1 2018, MPLF's investment portfolio made cash distributions (including amounts received from called investments) of $5.3 million. In April 2018, MPLF's investment portfolio made cash distributions of $5.8 million, or $0.03 per weighted average common share.
While we are pleased with the portfolio's cash flow generation, it was modestly lower than it otherwise would have been as a result of an unusually wide differential between 1 month and 3 month LIBOR. While CLO debt typically pays interest based on a spread over 3 month LIBOR, most corporate loans enable the borrower to elect to make payments off varying LIBOR bases including 1 month, 3 month and 6 month (with most borrowers typically electing for 3 month). With the historically wide differential between 1 month and 3 month LIBOR, an increasing number of corporate borrowers elected to make payments off 1 month LIBOR. Many in the market, including us, expect this unusually wide differential to revert to the mean with the passage of time.
(7) (8) Please see the important disclosures and notes beginning on page 19.
For perspective, the widest differential year-to-date in 2018 was approximately 47 basis points and as of the date of this letter, the differential has decreased to approximately 29 basis points.
Portfolio Summary
As of 30 April 2018, MPLF has exposure to 327 corporate borrowers with the largest exposure to any one borrower of 1.2% and average exposure of 0.4%. The average market value of the loans is 99.42%.
As illustrated below, MPLF has 66.4% exposure to CLO equity, 18.6% to the Funding Subsidiary, 7.5% to CLO debt, 5.3% to LAFs and 2.2% to fee participations and other assets. The weighted average effective yield or all-in yield was 15.3% on CLO equity, 4.3% on CLO debt and 11.1% on fee participations and other assets. For the Funding Subsidiary and LAFs, income is not accrued using the effective yield method but rather, recognized at the end of the period. Taking to account all assets, MPLF targets a low to mid-teens ROE over the long term.(2)
Portfolio Holdings(9) ($ Millions) as at 30 April 2018
% Owned Equity by Marble % of Reinvestment Tranche Moody's Point Fair Investment Effective Non-Call Period End CLO CLO Size Size Rating & Affiliates Value(9) Portfolio Yield(10) Date Date ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ MP CLO III $401.5 $55.1 NR 71.2% $16.7 8.0% 16.2% 20-Oct-19 20-Oct-22 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ MP CLO IV $398.7 $48.4 NR 5.0% $1.0 0.5% 11.4% 25-Jul-19 14-Jul-21 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ MP CLO VI $397.0 $40.8 NR 50.6% $10.9 5.2% 18.4% 15-Jan-17 15-Jan-19 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ MP CLO VII $539.6 $45.5 NR 61.2% $17.8 8.5% 26.1% 18-Apr-17 18-Apr-19 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ MP CLO VIII $502.7 $50.0 NR 51.7% $18.0 8.6% 10.7% 28-Oct-17 28-Oct-19 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ Marble Point CLO X $501.5 $50.0 NR 86.0% $30.0 14.4% 11.1% 15-Apr-20 17-Oct-22 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ Marble Point CLO XI $501.2 $48.5 NR 59.8% $22.4 10.7% 15.9% 18-Jan-20 18-Jan-23 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ Marble Point CLO XII $500.0 $48.7 NR 59.5% $22.1 10.6% 14.4% 22-May-20 16-Jul-23 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ Total Marble Point CLO Equity $138.9 66.4% 15.3% ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ Debt All-In Tranche Yield(10) Size ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ MP CLO IV $398.7 $260.5 Aaa 5.0% $11.1 5.3% 3.6% 25-Jul-19 14-Jul-21 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============
MP CLO IV $398.7 $42.0 Aa2 5.0% $1.8 0.9% 4.2% 25-Jul-19 14-Jul-21 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ MP CLO IV $398.7 $19.4 A2 5.0% $0.8 0.4% 4.8% 25-Jul-19 14-Jul-21 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ MP CLO IV $398.7 $24.6 Baa3 5.0% $1.1 0.5% 6.0% 25-Jul-19 14-Jul-21 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ MP CLO IV $398.7 $24.0 Ba3 5.0% $1.0 0.5% 9.4% 25-Jul-19 14-Jul-21 ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ Total Marble Point CLO Debt $15.8 7.5% 4.3% ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ Marble Point CLO Fee Participations & Other Assets $4.6 2.2% 11.1% ========================================================= ========= =========== ========== ========= ============ NAV of Funding Subsidiary $38.9 18.6% N/A ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ Marble Point LAF Equity $11.0 5.3% N/A ============= ======== ======== ======= ============= ========= =========== ========== ========= ============ Total Investment Portfolio (*() Numbers may not (*() $209.1 100.0% foot due to rounding
(2) (9) (10) Please see the important disclosures and notes beginning on page 19.
As of 30 April 2018, compared to their average quarterly vintage cohorts, Marble Point's CLOs have 1) a 7 basis points higher weighted average market price (Marble Point: 98.98%; Vintage Cohorts: 98.91%, 2) 72 basis points lower percentage of loans marked below 80 (Marble Point: 1.01%; Vintage Cohorts: 1.73%, and 3) a more favorable weighted average rating factor ("WARF") of 56 points (Marble Point: 2761; Vintage Cohorts: 2818).(6)(11)
Investment Activity and Pipeline
We were active post-IPO in terms of deploying the IPO proceeds raised as well as refinancing, resetting and executing "call and roll" transactions for the existing CLOs.
Ramp Up of Loans in the Funding Subsidiary
As noted earlier, from 31 December 2017 through 30 April 2018, the amount of loans owned by the Funding Subsidiary increased from $36.9 million to $121.7 million and the Funding Subsidiary is essentially fully ramped based on the current equity capital base as of the date of this letter.
MP CLO VI Call and Roll into Marble Point CLO XII
On 10 April 2018, a "call and roll" transaction was priced in which MP CLO VI was called and a significant portion of its assets were rolled into a new CLO, Marble Point CLO XII. This transaction reduced the weighted average cost of debt ("WACD") by 19 basis points as Marble Point CLO XII has a WACD of LIBOR + 153 basis points as compared to MP CLO VI's WACD of LIBOR + 172 basis points.(12) In addition, the transaction resulted in an effective extension of the remaining reinvestment period by 4.5 years, as Marble Point CLO XII has a new five year reinvestment period, along with a two year non-call period and 13 year maturity.
MPLF invested $22.1 million in Marble Point CLO XII, $11.1 million of which represented new incremental capital deployed and $11.0 million represented cash that was received or expected to be received from the call of MP CLO VI. The estimated effective yield on the investment in Marble Point CLO XII is 14.4%.(12)
J.P. Morgan Securities LLC acted as placement agent on Marble Point CLO XII, which closed on 22 May 2018.
MP CLO VIII Refinancing
On 30 April 2018, the refinancing of MP CLO VIII was priced. This refinancing transaction lowered the WACD by 68 basis points (from LIBOR + 208 to LIBOR + 140 basis points).(12) In addition, certain Collateral Quality Tests in the CLO were also restated and/or extended, which provides additional investment flexibility with respect to the underlying loan portfolio.
Morgan Stanley & Co. LLC acted as placement agent on the refinancing of MP CLO VIII, which closed on 11 May 2018. As a result of this refinancing transaction, the future cash flows to the Company are expected to be higher and the effective yield increased from 10.7% to 17.9%.(12)
By reducing the WACD on certain CLOs via the call and roll and refinancing transactions summarized above, both of these transactions contributed toward mitigating the loan spread compression that the market is experiencing.(12)
(2) (6) (11) (12) Please see the important disclosures and notes beginning on page 19.
Funded LAF for Marble Point CLO XIV
On 29 March 2018, MPLF funded $10 million into a newly formed LAF to accumulate loans in advance of a new issue CLO. As of the date of this letter, MPLF has $21 million funded into the LAF. We are seeking to convert this LAF into a new CLO later this year.
With CLO debt pricing at post-crisis lows, we believe that locking in long-term, non mark-to-market financing at these attractive levels provides shareholders with an attractive return profile today and the opportunity to benefit from loan price volatility in the future.
MARKET UPDATE
During the first quarter, U.S. GDP grew at a 2.2% annual rate. As of the date of this letter, there are signs that the economy has gathered momentum post-Q1 and the consensus full year GDP forecast is approximately 2.8% according to the Bloomberg Consensus Forecasts Summary as of 5 June 2018. This compares to GDP of 2.3% in 2017.
The May 2018 jobs report illustrated a tightening labor market with U.S. unemployment falling to an 18 year low of 3.8%. J.P. Morgan is forecasting three additional rate hikes during the remainder of 2018 and four in 2019 and LIBOR typically increases along with the general level of interest rates.(13) Increases in LIBOR are generally beneficial to CLO equity cash flows, all else equal.
Loan Market
The theme in the loan market continues to be that of significant demand for floating rate assets (including loans and CLO debt). In fact, loan refinancing and repricing volume during Q1 2018 was the second highest on record with $143 billion of activity, according to S&P Capital IQ. This led to a reduction in spreads during the quarter of five basis points.
The CSLLI continued its run of solid performance year to date through 30 April 2018, finishing the period with an average price of 98.23, as compared to the 97.63 price as of 31 December 2017. Incorporating interest income, the total return on the CSLLI is 2.08% year to date.
As noted earlier, the loan market found itself largely insulated from the volatility that other risk asset classes experienced during Q1 2018. As economic growth has remained healthy and the Fed's focus has shifted from highly accommodative to the gradual normalization of interest rates, many investors are turning to floating rate assets to protect against interest rate risk. Both loans and CLO debt have been beneficiaries of this trend.
Loan market technicals remained strong during the first quarter, resulting in the continued rise in loan prices and an even greater percentage of the loan market trading above par. As of 30 April 2018, 74.5% of the loan market was trading at or above par as compared to 62.6% as of 31 December 2017.(14)
In addition to the strong CLO issuance described below, retail loan funds experienced a net inflow of $4.5 billion through 30 April 2018, according to J.P. Morgan. This compares to inflows of $9.4 billion in all of 2017. (15)
(13) (14) (15) Please see the important disclosures and notes beginning on page 19.
The current market environment in which the supply and demand technicals favor the borrower has resulted in decreasing loan spreads and more flexible terms incorporated into credit agreements, rendering a disciplined and time-tested credit process paramount. As noted earlier, we seek to invest in loans with a meaningful margin of safety as measured by our assessment of a credit's loan-to-value ratio.
From a fundamental perspective, while leverage multiples crept up during the quarter, interest coverage remained stable.
As corporate borrowers have taken advantage of the strong demand for loans and more flexible terms to refinance their existing debt, they have also been able to extend loan maturity dates. As a result, only 5.7% of the loans in MPLF's underlying loan portfolio mature prior to 2021.
We believe that it is unlikely that the default rate on loans will increase materially over the near to medium term given 1) this low percentage of loans with maturities before 2021, 2) the fact that approximately three quarters of loan issuance is covenant-lite, according to S&P Capital IQ (and therefore, we expect few technical defaults) and 3) the U.S. economy and corporate fundamentals remain generally healthy combine to make it less likely, in our opinion, that the default rate will increase materially over the short to medium term.
The consensus view among most market participants is similar. For example, according to an S&P Capital IQ survey, 64% of loan managers surveyed believe that 2020 is the next time defaults will exceed the historical average of approximately 3.0%.(16) Furthermore, J.P. Morgan's default forecasts for 2018 and 2019 are 2.5% and 2.0%, respectively.(13)
However, while we expect defaults to remain below historical averages, this does not mean that loan prices will not experience periods of volatility - and we believe that the long-term value of CLO equity benefits from periods of loan market volatility.
(13) (16) Please see the important disclosures and notes beginning on page 19.
The structure of CLOs (with their long-term, locked in place, non mark-to-market financing) allows the CLO collateral manager to take advantage of periods of market stress by reinvesting principal proceeds from loan repayments and sales into loans at lower prices and wider spreads.
CLO Market
While CLO debt spreads widened modestly during the latter part of Q1 (driven primarily by an increase in CLO supply), the cost of financing for new issue CLOs (as well as for resets and refinancings) remains near the CLO 2.0 tights.
Year to date through April, 75 U.S. CLOs were issued, representing $43.0 billion of volume (excluding issuances related to refinancings and resets) according to S&P Capital IQ. Reset and refinancing activity has continued to be robust with $41.6 billion of resets and $9.6 billion of refinancings according to S&P LCD.
As of April 2018, U.S. CLOs outstanding totaled approximately $526 billion through 1,200 CLOs according to Thomson Reuters.
* * * * *
We thank you for your continued confidence and trust in us. Please do not hesitate to reach out with any questions or to discuss the market.
Sincerely,
Thomas Shandell
Chief Executive Officer & Chief Investment Officer
Marble Point Credit Management LLC
11 June 2018
Summary of portfolio characteristIcs
The information presented below is on a look-through basis to the CLO equity, Funding Subsidiary and LAFs held by MPLF as of 31 March 2018 (except as otherwise noted) and reflects the aggregate underlying exposure of the Company based on the portfolios of those investments. The data is estimated and unaudited and is derived from CLO trustee reports received by MPLF relating to March 2018 and from custody statements and/or other information, or other third party sources.
Summary of Portfolio Investments (as at 31 March 2018)(17)
Marble Point CLO Equity 57.5% ------------------------------------- ------- NAV of Funding Subsidiary 28.0% ------------------------------------- ------- Marble Point CLO Debt 7.6% ------------------------------------- ------- Marble Point LAF Equity 4.8% ------------------------------------- ------- Marble Point CLO Fee Participations 2.2% ------------------------------------- ------- 100.0% ------------------------------------- -------
Summary of Underlying Loan Portfolio (as at 31 March 2018)(18)(19)
1Q18 4Q17 ====================================== ========== ========== Unique Underlying Borrowers 327 347 -------------------------------------- ---------- ---------- Largest Individual Borrower Exposure 1.1% 1.2% -------------------------------------- ---------- ---------- Average Borrower Exposure 0.4% 0.3% -------------------------------------- ---------- ---------- Currency: USD Exposure 100.0% 100.0% -------------------------------------- ---------- ---------- Exposure to First Lien Loans 96.1% 96.6% -------------------------------------- ---------- ---------- Exposure to Defaulted Borrowers 0.1% NA -------------------------------------- ---------- ---------- Average Junior OC Cushion 4.80% 4.66% -------------------------------------- ---------- ---------- Average Market Value of Collateral 99.44% 99.37% -------------------------------------- ---------- ---------- Average Stated Spread 3.47% 3.55% -------------------------------------- ---------- ---------- Weighted Average Rating B1/B2 B1/B2 -------------------------------------- ---------- ---------- Weighted Average Maturity 5.1 Years 5.2 Years
(17) (18) (19) Please see the important disclosures and notes beginning on page 19.
The top ten underlying obligors on a look-through basis as of 31 March 31 2018 are provided below:
Top 10 Underlying Obligors(18)
Top 10 Borrowers % of Total ============================= =========== TransDigm 1.1% Numericable 1.1% Asurion 1.0% Advantage Sales & Marketing 1.0% Alvogen Pharma US 1.0% BJs Wholesale Club 0.9% Global Tel Link 0.9% Calpine 0.8% Altice 0.8% Save A Lot 0.8% ============================= =========== Total 9.5% -----------
The credit ratings distribution of the underlying obligors on a look-through basis as of 31 March 2018 is provided on the corresponding PDF file: http://www.rns-pdf.londonstockexchange.com/rns/0769R_1-2018-6-12.pdf
Rating Distribution of Underlying Obligors(18)(19)
The top ten industries of the underlying obligors on a look-through basis as of 31 March 2018 are provided below:
Top 10 Industries of Underlying Obligors(18)(20)
Top 10 Moody's Industries % of Total ==================================== =========== Healthcare & Pharmaceuticals 14.7% High Tech Industries 10.3% Services: Business 9.3% Retail 8.3% Media: Broadcasting & Subscription 6.0% Banking, Finance, Insurance & Real Estate 5.2% Chemicals, Plastics & Rubber 4.1% Capital Equipment 3.7% Hotel, Gaming & Leisure 3.7% Telecommunications 3.5% ==================================== =========== Total 68.9%
The maturity distribution of the underlying obligors on a look-through basis as of 31 March 2018 is provided on the corresponding PDF file: http://www.rns-pdf.londonstockexchange.com/rns/0769R_1-2018-6-12.pdf
Maturity Distribution of Underlying Obligors(18)
(18) (19) (20) Please see the important disclosures and notes beginning on page 19.
Appendix A: MPLF Lookthrough Exposures (as at 31 March 2018)(18)
Issuer Industry Exposure TransDigm Aerospace & Defense 1.14% ======================================= ================================= ========= Media: Broadcasting & Numericable Subscription 1.09% ======================================= ================================= ========= Asurion Services: Consumer 0.97% ======================================= ================================= ========= Advantage Sales & Marketing Services: Business 0.96% ======================================= ================================= ========= Alvogen Pharma US Inc Healthcare & Pharmaceuticals 0.95% ======================================= ================================= ========= BJs Wholesale Club Retail 0.93% ======================================= ================================= ========= Global Tel Link Telecommunications 0.90% ======================================= ================================= ========= Calpine Energy: Electricity 0.85% ======================================= ================================= ========= Media: Broadcasting & Altice Subscription 0.84% ======================================= ================================= ========= Save A Lot Retail 0.83% ======================================= ================================= ========= Riverbed Technology High Tech Industries 0.83% ======================================= ================================= ========= Universal Services of America Services: Business 0.82% ======================================= ================================= ========= Midwest Physician Administrative Services LLC Healthcare & Pharmaceuticals 0.82% ======================================= ================================= ========= Energy Transfer Equity Energy: Oil & Gas 0.81% ======================================= ================================= ========= National Veterinary Associates Healthcare & Pharmaceuticals 0.77% ======================================= ================================= ========= Kindred Healthcare Healthcare & Pharmaceuticals 0.77% ======================================= ================================= ========= Monitronics International Services: Consumer 0.75% ======================================= ================================= ========= Michaels Stores Retail 0.73% ======================================= ================================= ========= Albertsons Beverage, Food & Tobacco 0.73%
======================================= ================================= ========= Planet Fitness Hotel, Gaming & Leisure 0.72% ======================================= ================================= ========= Dell Inc High Tech Industries 0.71% ======================================= ================================= ========= Party City Retail 0.71% ======================================= ================================= ========= Harbor Freight Tools Retail 0.71% ======================================= ================================= ========= Emdeon Business Services Healthcare & Pharmaceuticals 0.71% ======================================= ================================= ========= MacDonald Dettwiler Assoc Ltd Aerospace & Defense 0.70% ======================================= ================================= ========= Travelport Transportation: Consumer 0.68% ======================================= ================================= ========= Surgery Centers Holdings Healthcare & Pharmaceuticals 0.68% ======================================= ================================= ========= Mens Wearhouse Retail 0.68% ======================================= ================================= ========= Learning Care Group Services: Consumer 0.67% ======================================= ================================= ========= Kinetic Concepts Healthcare & Pharmaceuticals 0.66% ======================================= ================================= ========= Jo-Ann Stores Retail 0.66% ======================================= ================================= ========= Sabre Holdings Transportation: Consumer 0.65% ======================================= ================================= ========= Concentra Healthcare & Pharmaceuticals 0.65% ======================================= ================================= ========= US Renal Care Healthcare & Pharmaceuticals 0.64% ======================================= ================================= ========= PetSmart Retail 0.64% ======================================= ================================= ========= Weight Watchers International Services: Consumer 0.64% ======================================= ================================= ========= SS&C Technologies High Tech Industries 0.63% ======================================= ================================= ========= Media: Broadcasting & ION Media Networks Subscription 0.61% ======================================= ================================= ========= Banking, Finance, Insurance Citco & Real Estate 0.61% ======================================= ================================= ========= Chemicals, Plastics & PLZ Aeroscience Rubber 0.59% ======================================= ================================= ========= First Data Services: Business 0.59% ======================================= ================================= ========= Herbalife Intl Inc Beverage, Food & Tobacco 0.59% ======================================= ================================= ========= Acosta Sales & Marketing Services: Business 0.58% ======================================= ================================= ========= Oxbow Carbon Metals & Mining 0.58% ======================================= ================================= ========= Telesat Telecommunications 0.57% ======================================= ================================= ========= Hyland Software High Tech Industries 0.56% ======================================= ================================= ========= Blackboard High Tech Industries 0.55% ======================================= ================================= ========= Zotec Partners Healthcare & Pharmaceuticals 0.55% ======================================= ================================= ========= Media: Broadcasting & Sinclair Television Group Subscription 0.55% ======================================= ================================= ========= McAfee LLC High Tech Industries 0.54% ======================================= ================================= ========= Cole-Parmer Capital Equipment 0.54% ======================================= ================================= ========= Dragon Merger Sub LLC Capital Equipment 0.54% ======================================= ================================= ========= Guggenheim Partners Investment Banking, Finance, Insurance Management Hol. & Real Estate 0.54% ======================================= ================================= ========= Amneal Pharmaceuticals Healthcare & Pharmaceuticals 0.54% ======================================= ================================= ========= Graftech Intl Ltd Metals & Mining 0.53% ======================================= ================================= ========= Healthport Services: Business 0.52% ======================================= ================================= ========= Burlington Stores Retail 0.52% ======================================= ================================= ========= MCS AMS Sub-Holdings Services: Consumer 0.52% ======================================= ================================= ========= AOT Bedding Super Holdings Consumer Goods: Durable 0.51% ======================================= ================================= ========= MWI Hldgs Inc Capital Equipment 0.51% ======================================= ================================= ========= Issuer Industry Exposure ======================================= ================================= ========= Securus Technologies Telecommunications 0.51% ======================================= ================================= ========= Air Methods Corp Transportation: Consumer 0.50% ======================================= ================================= ========= Smart & Final Stores Retail 0.50% ======================================= ================================= ========= Polyconcept Consumer Goods: Non-Durable 0.50% ======================================= ================================= ========= American Airlines Transportation: Consumer 0.49% ======================================= ================================= ========= Oasis Outsourcing Services: Business 0.49% ======================================= ================================= ========= One Call Medical Inc (Opal Acquisition Inc) Healthcare & Pharmaceuticals 0.48% ======================================= ================================= ========= Mallinckrodt Healthcare & Pharmaceuticals 0.48% ======================================= ================================= ========= TravelClick Services: Business 0.48% ======================================= ================================= ========= Epicor Software High Tech Industries 0.48% ======================================= ================================= ========= PetVet Care Centers Healthcare & Pharmaceuticals 0.47% ======================================= ================================= ========= ValueOptions Healthcare & Pharmaceuticals 0.47% ======================================= ================================= ========= Chemicals, Plastics & Ineos Rubber 0.47% ======================================= ================================= ========= Compuware High Tech Industries 0.46% ======================================= ================================= =========
Brickman Group Services: Business 0.46% ======================================= ================================= ========= Life Time Fitness Hotel, Gaming & Leisure 0.46% ======================================= ================================= ========= 24 Hour Fitness Hotel, Gaming & Leisure 0.46% ======================================= ================================= ========= Liberty Cablevision of Puerto Media: Broadcasting & Rico Subscription 0.45% ======================================= ================================= ========= Information Resources Services: Business 0.45% ======================================= ================================= ========= US Anesthesia Partners Inc Healthcare & Pharmaceuticals 0.44% ======================================= ================================= ========= TransUnion Services: Business 0.44% ======================================= ================================= ========= Media: Broadcasting & Hemisphere Media Group Subscription 0.44% ======================================= ================================= ========= Pharmaceutical Product Development Healthcare & Pharmaceuticals 0.44% ======================================= ================================= ========= SunSource Holdings Capital Equipment 0.43% ======================================= ================================= ========= Navistar International Automotive 0.43% ======================================= ================================= ========= Presidio High Tech Industries 0.42% ======================================= ================================= ========= Banking, Finance, Insurance First Eagle Investment Management & Real Estate 0.41% ======================================= ================================= ========= Banking, Finance, Insurance National Financial Partners & Real Estate 0.41% ======================================= ================================= ========= Superior Vision Holdings Inc Healthcare & Pharmaceuticals 0.40% ======================================= ================================= ========= 1-800 Contacts Inc Retail 0.39% ======================================= ================================= ========= Media: Broadcasting & Charter Communications Subscription 0.39% ======================================= ================================= ========= Wilsonart Construction & Building 0.38% ======================================= ================================= ========= Media: Broadcasting & Liberty Global Subscription 0.38% ======================================= ================================= ========= Solera Holdings High Tech Industries 0.38% ======================================= ================================= ========= LA Fitness Hotel, Gaming & Leisure 0.38% ======================================= ================================= ========= CPG International Construction & Building 0.37% ======================================= ================================= ========= Mister Car Wash Retail 0.37% ======================================= ================================= ========= Media: Broadcasting & UPC Holding BV Subscription 0.37% ======================================= ================================= ========= La Quinta Hotel, Gaming & Leisure 0.36% ======================================= ================================= ========= PowerTeam Construction & Building 0.36% ======================================= ================================= ========= Misys High Tech Industries 0.36% ======================================= ================================= ========= KEMET Corp High Tech Industries 0.36% ======================================= ================================= ========= Doosan Infracore Bobcat Holdings Capital Equipment 0.36% ======================================= ================================= ========= Banking, Finance, Insurance Compass Diversified & Real Estate 0.36% ======================================= ================================= ========= Shearers Foods Beverage, Food & Tobacco 0.35% ======================================= ================================= ========= Chemicals, Plastics & Unifrax Rubber 0.35% ======================================= ================================= ========= Rackspace Hosting Inc High Tech Industries 0.35% ======================================= ================================= ========= American Tire Distributors Wholesale 0.35% ======================================= ================================= ========= Aristocrat Leisure Hotel, Gaming & Leisure 0.34% ======================================= ================================= ========= SI Organization Aerospace & Defense 0.34% ======================================= ================================= ========= Banking, Finance, Insurance DTZ Holdings Plc & Real Estate 0.34% ======================================= ================================= ========= Equian LLC Healthcare & Pharmaceuticals 0.33% ======================================= ================================= ========= On Assignment Services: Business 0.33% ======================================= ================================= ========= Valeant Pharmaceuticals International Healthcare & Pharmaceuticals 0.32% ======================================= ================================= ========= Hearthside Group Holdings Beverage, Food & Tobacco 0.32% ======================================= ================================= ========= Idera Services: Business 0.31% ======================================= ================================= ========= Royalty Pharma Healthcare & Pharmaceuticals 0.31% ======================================= ================================= ========= TierPoint Telecommunications 0.31% ======================================= ================================= ========= Envision Healthcare Holdings Healthcare & Pharmaceuticals 0.31% ======================================= ================================= ========= Banking, Finance, Insurance TaxACT Holdings & Real Estate 0.31% ======================================= ================================= ========= Station Casinos Hotel, Gaming & Leisure 0.31% ======================================= ================================= ========= Containers, Packaging Anchor Glass & Glass 0.31% ======================================= ================================= ========= iPayment Services: Business 0.31% ======================================= ================================= ========= Containers, Packaging Transilwrap Company & Glass 0.31% ======================================= ================================= ========= ExamWorks Group Inc Services: Business 0.30% ======================================= ================================= ========= Issuer Industry Exposure ======================================= ================================= ========= Omnitracs High Tech Industries 0.30% ======================================= ================================= ========= CenturyLink Telecommunications 0.30% ======================================= ================================= =========
Ring Container Technologies Containers, Packaging Group & Glass 0.30% ======================================= ================================= ========= Banking, Finance, Insurance Capital Automotive & Real Estate 0.29% ======================================= ================================= ========= Chemicals, Plastics & Orion Engineered Carbons Rubber 0.29% ======================================= ================================= ========= Chemicals, Plastics & Tronox Rubber 0.29% ======================================= ================================= ========= Lumileds Hldg BV Automotive 0.29% ======================================= ================================= ========= Flexera Software High Tech Industries 0.29% ======================================= ================================= ========= Houston Fuel Oil Terminal Company Energy: Oil & Gas 0.28% ======================================= ================================= ========= SRAM Corp Consumer Goods: Non-Durable 0.28% ======================================= ================================= ========= NRG Energy Utilities: Electric 0.28% ======================================= ================================= ========= Werner FinCo LP Capital Equipment 0.28% ======================================= ================================= ========= Banking, Finance, Insurance AssuredPartners & Real Estate 0.28% ======================================= ================================= ========= Goodpack Transportation: Cargo 0.28% ======================================= ================================= ========= Quorum Health Corp Healthcare & Pharmaceuticals 0.28% ======================================= ================================= ========= Mannington Mills Construction & Building 0.28% ======================================= ================================= ========= EVERTEC Group Services: Business 0.28% ======================================= ================================= ========= Containers, Packaging Tank Holdings & Glass 0.28% ======================================= ================================= ========= Infoblox Inc High Tech Industries 0.27% ======================================= ================================= ========= Chemicals, Plastics & Plaskolite Rubber 0.27% ======================================= ================================= ========= Wesco Aircraft Hardware Aerospace & Defense 0.27% ======================================= ================================= ========= Paradigm Precision Group Aerospace & Defense 0.27% ======================================= ================================= ========= MoneyGram International Services: Business 0.27% ======================================= ================================= ========= Akorn Healthcare & Pharmaceuticals 0.26% ======================================= ================================= ========= Leslies Poolmart Retail 0.26% ======================================= ================================= ========= Augusta Sportswear Group Inc Consumer Goods: Durable 0.26% ======================================= ================================= ========= Electrical Components International High Tech Industries 0.26% ======================================= ================================= ========= Frontier Communications Telecommunications 0.26% ======================================= ================================= ========= Tensar Construction & Building 0.26% ======================================= ================================= ========= Containers, Packaging Prolamina & Glass 0.26% ======================================= ================================= ========= Cypress Performance Construction & Building 0.26% ======================================= ================================= ========= Atlantic Power LP Energy: Electricity 0.26% ======================================= ================================= ========= Chemicals, Plastics & PPC Industries Rubber 0.25% ======================================= ================================= ========= Media: Broadcasting & RCN Cable Subscription 0.25% ======================================= ================================= ========= Lucid Energy Group II Energy: Oil & Gas 0.25% ======================================= ================================= ========= Containers, Packaging Ranpak & Glass 0.24% ======================================= ================================= ========= Chemicals, Plastics & KMG Chemicals Inc Rubber 0.24% ======================================= ================================= ========= NAVEX Global Services: Business 0.24% ======================================= ================================= ========= Tecomet Healthcare & Pharmaceuticals 0.23% ======================================= ================================= ========= TPF II Power Utilities: Electric 0.23% ======================================= ================================= ========= CeramTec Capital Equipment 0.23% ======================================= ================================= ========= Dealer Tire Wholesale 0.23% ======================================= ================================= ========= Vertiv Co High Tech Industries 0.22% ======================================= ================================= ========= Emerald Expositions Holdings Media: Diversified & Production 0.22% ======================================= ================================= ========= AMG Advanced Metallurgical Group NV Metals & Mining 0.22% ======================================= ================================= ========= Linxens High Tech Industries 0.21% ======================================= ================================= ========= Constellis Group Inc Aerospace & Defense 0.21% ======================================= ================================= ========= Banking, Finance, Insurance Broadstreet Partners Inc & Real Estate 0.21% ======================================= ================================= ========= Media: Broadcasting & Nexstar Broadcasting Subscription 0.21% ======================================= ================================= ========= Media: Advertising, Printing Houghton Mifflin Harcourt & Publishing 0.21% ======================================= ================================= ========= Libbey Glass Consumer Goods: Durable 0.21% ======================================= ================================= ========= Chemicals, Plastics & Ennis-Flint Rubber 0.20% ======================================= ================================= ========= Consolidated Precision Products Aerospace & Defense 0.20% ======================================= ================================= ========= McJunkin Red Man Energy: Oil & Gas 0.20% ======================================= ================================= ========= Osum Production Energy: Oil & Gas 0.20%
======================================= ================================= ========= Sterigenics-Nordion Healthcare & Pharmaceuticals 0.20% ======================================= ================================= ========= Inmar Services: Business 0.20% ======================================= ================================= ========= Informatica High Tech Industries 0.20% ======================================= ================================= ========= Varsity Brands Consumer Goods: Non-Durable 0.19% ======================================= ================================= ========= Greatbatch Healthcare & Pharmaceuticals 0.19% ======================================= ================================= ========= Delta Airlines Transportation: Consumer 0.19% ======================================= ================================= ========= Chemicals, Plastics & Israel Chemicals Ltd Rubber 0.19% ======================================= ================================= ========= CCC Information Services High Tech Industries 0.19% ======================================= ================================= ========= Banking, Finance, Insurance NXT Capital & Real Estate 0.18% ======================================= ================================= ========= Chemicals, Plastics & DuBois Chemicals Rubber 0.18% ======================================= ================================= ========= Issuer Industry Exposure ======================================= ================================= ========= Arch Coal Metals & Mining 0.18% ======================================= ================================= ========= Stratose Healthcare & Pharmaceuticals 0.18% ======================================= ================================= ========= Dealogic High Tech Industries 0.18% ======================================= ================================= ========= Community Health Systems Healthcare & Pharmaceuticals 0.18% ======================================= ================================= ========= PODS Enterprises LLC Transportation: Cargo 0.17% ======================================= ================================= ========= Pike Corp Construction & Building 0.17% ======================================= ================================= ========= PetCo Animal Supplies Retail 0.17% ======================================= ================================= ========= Summit Midstream Partners Holdings LLC Energy: Oil & Gas 0.17% ======================================= ================================= ========= Argon Med Devices Inc Healthcare & Pharmaceuticals 0.17% ======================================= ================================= ========= Media: Broadcasting & Virgin Media Investment Holdings Subscription 0.17% ======================================= ================================= ========= Medallion Midland Acquisition Energy: Oil & Gas 0.17% ======================================= ================================= ========= Chemicals, Plastics & Archroma Rubber 0.17% ======================================= ================================= ========= Osmose Holdings Construction & Building 0.17% ======================================= ================================= ========= Greenway Medical Technologies Healthcare & Pharmaceuticals 0.16% ======================================= ================================= ========= Genesys High Tech Industries 0.16% ======================================= ================================= ========= SolarWinds Inc High Tech Industries 0.16% ======================================= ================================= ========= SBP Holdings Wholesale 0.15% ======================================= ================================= ========= TRC Cos Inc Environmental Industries 0.15% ======================================= ================================= ========= Bass Pro Group Retail 0.15% ======================================= ================================= ========= Banking, Finance, Insurance Victory Capital Management & Real Estate 0.15% ======================================= ================================= ========= US Foods Beverage, Food & Tobacco 0.15% ======================================= ================================= ========= HD Supply Construction & Building 0.15% ======================================= ================================= ========= Scientific Games Hotel, Gaming & Leisure 0.15% ======================================= ================================= ========= Media: Broadcasting & Mediacom Broadband Subscription 0.15% ======================================= ================================= ========= Certara Holdco Inc Healthcare & Pharmaceuticals 0.15% ======================================= ================================= ========= Banking, Finance, Insurance Greenhill Co Inc & Real Estate 0.15% ======================================= ================================= ========= Expera Specialty Solutions LLC Forest Products & Paper 0.15% ======================================= ================================= ========= Consolidated Communications Telecommunications 0.15% ======================================= ================================= ========= Quikrete Holdings Inc Construction & Building 0.15% ======================================= ================================= ========= Chemicals, Plastics & Sonneborn Rubber 0.15% ======================================= ================================= ========= Grosvenor Capital Management Banking, Finance, Insurance Holdings & Real Estate 0.15% ======================================= ================================= ========= Ardent Legacy Acquisition Healthcare & Pharmaceuticals 0.15% ======================================= ================================= ========= Banking, Finance, Insurance Liquidnet Holdings & Real Estate 0.14% ======================================= ================================= ========= Gates Global Capital Equipment 0.14% ======================================= ================================= ========= American Rock Salt Metals & Mining 0.14% ======================================= ================================= ========= SRS Distribution Construction & Building 0.14% ======================================= ================================= ========= M/A-COM Technology High Tech Industries 0.14% ======================================= ================================= ========= Global Healthcare Exchange Services: Business 0.14% ======================================= ================================= ========= United Site Services Services: Business 0.14% ======================================= ================================= ========= TKC Holdings Inc Services: Business 0.13% ======================================= ================================= ========= Media: Advertising, Printing McGraw-Hill Global Education & Publishing 0.13% ======================================= ================================= ========= ServiceMaster Services: Consumer 0.13% ======================================= ================================= ========= CityCenter Holdings Hotel, Gaming & Leisure 0.13%
======================================= ================================= ========= Windstream Telecommunications 0.13% ======================================= ================================= ========= Infiltrator Systems Construction & Building 0.13% ======================================= ================================= ========= Minimax Capital Equipment 0.13% ======================================= ================================= ========= Overseas Shipholding Transportation: Cargo 0.12% ======================================= ================================= ========= TTM Technologies High Tech Industries 0.12% ======================================= ================================= ========= Avolon TLB Borrower 1 Luxembourg Banking, Finance, Insurance Sa rl & Real Estate 0.12% ======================================= ================================= ========= Excelitas Technologies Capital Equipment 0.12% ======================================= ================================= ========= Containers, Packaging Plastipak Hldgs Inc & Glass 0.12% ======================================= ================================= ========= Gartner Inc High Tech Industries 0.12% ======================================= ================================= ========= Banking, Finance, Insurance United States Infrastructure & Real Estate 0.12% ======================================= ================================= ========= Post Holdings Inc Beverage, Food & Tobacco 0.12% ======================================= ================================= ========= Ascend Learning LLC Services: Business 0.11% ======================================= ================================= ========= Autodata Inc High Tech Industries 0.11% ======================================= ================================= ========= Sodelho SA Capital Equipment 0.11% ======================================= ================================= ========= Arbys Restaurant Group Beverage, Food & Tobacco 0.11% ======================================= ================================= ========= Tempo Acquisition LLC Services: Business 0.11% ======================================= ================================= ========= PAE Holding Corp Aerospace & Defense 0.11% ======================================= ================================= ========= Chemicals, Plastics & Zep Rubber 0.11% ======================================= ================================= ========= Air Canada Transportation: Consumer 0.11% ======================================= ================================= ========= MedRisk Healthcare & Pharmaceuticals 0.11% ======================================= ================================= ========= Containers, Packaging Crown Holdings & Glass 0.11% ======================================= ================================= ========= Media: Broadcasting & Cable One Inc Subscription 0.11% ======================================= ================================= ========= Issuer Industry Exposure ======================================= ================================= ========= Kronos Worldwide High Tech Industries 0.10% ======================================= ================================= ========= MaxLinear Inc High Tech Industries 0.10% ======================================= ================================= ========= Ziggo Telecommunications 0.10% ======================================= ================================= ========= Banking, Finance, Insurance Edelman Financial & Real Estate 0.10% ======================================= ================================= ========= IPC Systems Telecommunications 0.10% ======================================= ================================= ========= Wencor Group Aerospace & Defense 0.10% ======================================= ================================= ========= Rocket Software High Tech Industries 0.10% ======================================= ================================= ========= MultiPlan Healthcare & Pharmaceuticals 0.10% ======================================= ================================= ========= Gopher Resource Environmental Industries 0.09% ======================================= ================================= ========= Banking, Finance, Insurance Alliant Holdings & Real Estate 0.09% ======================================= ================================= ========= Wastequip Environmental Industries 0.09% ======================================= ================================= ========= Penn Engineering & Manufacturing Capital Equipment 0.09% ======================================= ================================= ========= Chemicals, Plastics & Univar Inc. Rubber 0.09% ======================================= ================================= ========= TMS International Metals & Mining 0.09% ======================================= ================================= ========= Chemicals, Plastics & Minerals Technologies Rubber 0.09% ======================================= ================================= ========= Prometric Services: Business 0.09% ======================================= ================================= ========= Barracuda Networks Inc High Tech Industries 0.09% ======================================= ================================= ========= Banking, Finance, Insurance HUB International & Real Estate 0.09% ======================================= ================================= ========= Media: Advertising, Printing Camelot UK Holdco Ltd & Publishing 0.09% ======================================= ================================= ========= Milacron Capital Equipment 0.09% ======================================= ================================= ========= Catalina Marketing Services: Business 0.09% ======================================= ================================= ========= Banking, Finance, Insurance Acrisure & Real Estate 0.08% ======================================= ================================= ========= Vantiv Services: Business 0.08% ======================================= ================================= ========= Renaissance Learning High Tech Industries 0.08% ======================================= ================================= ========= Southwire Capital Equipment 0.08% ======================================= ================================= ========= Chemicals, Plastics & Drew Marine Rubber 0.08% ======================================= ================================= ========= Hostess Brands Beverage, Food & Tobacco 0.08% ======================================= ================================= ========= United Pacific Retail 0.08% ======================================= ================================= ========= Extended Stay America Hotel, Gaming & Leisure 0.08% ======================================= ================================= ========= Applied Systems High Tech Industries 0.08% ======================================= ================================= =========
Containers, Packaging US TelePacific & Glass 0.07% ======================================= ================================= ========= Springer Science & Business Media: Advertising, Printing Media & Publishing 0.07% ======================================= ================================= ========= Ability Network Healthcare & Pharmaceuticals 0.07% ======================================= ================================= ========= Harbortouch Payments LLC Services: Business 0.07% ======================================= ================================= ========= Paysafe Group Services: Business 0.07% ======================================= ================================= ========= Lumos Networks Telecommunications 0.07% ======================================= ================================= ========= Banking, Finance, Insurance Fortress Invt Group LLC & Real Estate 0.07% ======================================= ================================= ========= Henry Company Construction & Building 0.07% ======================================= ================================= ========= CCM Merger Hotel, Gaming & Leisure 0.07% ======================================= ================================= ========= Hanson Building Products Construction & Building 0.07% ======================================= ================================= ========= CH Hold Corp Automotive 0.07% ======================================= ================================= ========= Util One Source LP Construction & Building 0.07% ======================================= ================================= ========= Datatel High Tech Industries 0.07% ======================================= ================================= ========= Harvey Gulf International Marine Transportation: Cargo 0.06% ======================================= ================================= ========= Cole Haan Consumer Goods: Non-Durable 0.06% ======================================= ================================= ========= Altran Technologies Services: Business 0.06% ======================================= ================================= ========= Goodyear Tire & Rubber Company Transportation: Consumer 0.06% ======================================= ================================= ========= EagleView Technology Services: Business 0.06% ======================================= ================================= ========= ON Semiconductor High Tech Industries 0.06% ======================================= ================================= ========= Global Payments Services: Business 0.05% ======================================= ================================= ========= Chemicals, Plastics & PolyOne Rubber 0.05% ======================================= ================================= ========= Vertafore High Tech Industries 0.05% ======================================= ================================= ========= Alion Science and Technology Aerospace & Defense 0.05% ======================================= ================================= ========= Burger King Beverage, Food & Tobacco 0.05% ======================================= ================================= ========= ABC Supply Construction & Building 0.05% ======================================= ================================= ========= CHG Buyer Corporation Healthcare & Pharmaceuticals 0.04% ======================================= ================================= ========= Columbus McKinnon Corp Capital Equipment 0.04% ======================================= ================================= ========= Lions Gate Entertainment Media: Diversified & Production 0.04% ======================================= ================================= ========= TI Group Automotive Automotive 0.04% ======================================= ================================= ========= Peabody Energy Metals & Mining 0.04% ======================================= ================================= ========= Energizer Holdings Consumer Goods: Durable 0.04% ======================================= ================================= ========= Chemicals, Plastics & Vantage Specialty Chemicals Rubber 0.04% ======================================= ================================= ========= Immucor Capital Equipment 0.03% ======================================= ================================= ========= Seminole Tribe of Florida Hotel, Gaming & Leisure 0.03% ======================================= ================================= ========= Chemicals, Plastics & PQ Corp Rubber 0.03% ======================================= ================================= ========= Issuer Industry Exposure ======================================= ================================= ========= GlobalLogic Services: Business 0.03% ======================================= ================================= ========= Grifols Healthcare & Pharmaceuticals 0.03% ======================================= ================================= ========= Banking, Finance, Insurance AmWINS Group & Real Estate 0.02% ======================================= ================================= ========= Harsco Corp Metals & Mining 0.02% ======================================= ================================= ========= Containers, Packaging Printpack & Glass 0.02% ======================================= ================================= ========= Melissa & Doug Consumer Goods: Non-Durable 0.02% ======================================= ================================= ========= Chemicals, Plastics & Emerald Performance Materials Rubber 0.02% ======================================= ================================= =========
(18) Please see the important disclosures and notes beginning on page 21.
Important Notes
This document has been prepared by Marble Point Credit Management LLC ("Marble Point") which is an investment adviser registered with the U.S. Securities and Exchange Commission. This document has been issued by Marble Point Loan Financing Limited (the "Company" or "MPLF") and is the sole responsibility of the Company. This document and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with the Company or any of its affiliates. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of any investment and should consult its own legal counsel and financial, actuarial, accounting, regulatory and tax advisers to evaluate any such investment. This document is provided for informational purposes only, does not constitute an offer to sell the shares issued by the Company (the "Shares") or a solicitation of an offer to purchase any such Shares in the United States, Australia, Canada, the Republic of South Africa, Japan or any other jurisdiction, and is not a prospectus. This document may not be relied upon and should not be used for the purpose of making any investment decision.
Past performance is not a reliable indicator of current of future results. The value of investments may go down as well as up and investors may not get back any of the amount invested.
The value of investments designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currencies. Adverse movements in currency exchange rates can result in a decrease in return and a loss of capital.
This document is being furnished to you solely for your information. No recipient may forward, reproduce, distribute, or make available in whole or in part, this document (directly or indirectly) to any other person. The distribution of this document in certain jurisdictions may be restricted by law and recipients of this document should inform themselves about and observe any such restrictions and other applicable legal requirements in their jurisdictions. Accordingly, recipients represent that they are able to receive this document without contravention of any applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business. By accepting this document, you agree to be bound by the foregoing limitations. This document, and the information contained therein, is not for viewing, release, distribution or publication in or into the United States, Australia, Canada, the Republic of South Africa or Japan or any other jurisdiction where applicable laws prohibit its release, distribution or publication, and will not be made available to any national, resident or citizen of the United States, Australia, Canada, the Republic of South Africa or Japan. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes must inform themselves about, and observe, any such restrictions. Any failure to comply with the restrictions may constitute a violation of the federal securities law of the United States or the laws of other jurisdictions.
The Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold in the United States to, or for the account or benefit of, U.S. persons unless they are registered under applicable law or exempt from registration. The Company has not been and will not be registered under the U.S. Investment Company Act of 1940, and investors will not be entitled to the benefits of such Act.
There is no guarantee that any of the goals, targets or objectives described in this document will be achieved. The investment strategies of the Company described herein may not be suitable for all investors and are not intended to constitute a complete investment program. Neither Marble Point nor the Company makes any representation or warranty (express or implied) with respect to the information contained herein (including, without limitation, information obtained from third parties) and each of them expressly disclaims any and all liability based on or relating to the information contained in, or errors or omissions from, these materials; or based on or relating to the use of these materials; or any other written or oral communications transmitted to the recipient or any of its affiliates or representatives in the course of its evaluation of the information herein.
None of the Company, Marble Point or any of their respective parent or subsidiary undertakings, or the subsidiary undertaking of any such parent undertakings, or any of such person's respective partners, shareholders, directors, members, officers, affiliates, agents, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any information or opinions presented or contained in this document nor shall they accept any responsibility whatsoever for, or make any warranty, express or implied, as to the truth, fullness, accuracy or completeness of the information in this document (or whether any information has been omitted from the document) or any other information relating to the Company, Marble Point or their respective subsidiaries or associated companies, in any form whatsoever, howsoever transmitted or made available or for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith. This shall not affect any liability any such person may have which may not be excluded under applicable law or regulation.
A Note on Forward Looking Statements. This document includes forward-looking statements. Forward-looking statements include all matters that are not historical facts. Actual results may differ materially from any results projected in the forward-looking statements and are subject to risks and uncertainties. Such statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, and other factors that may cause actual results to differ materially from the anticipated results expressed or implied by such forward-looking statements. The Company and Marble Point caution readers not to place undue reliance on such statements. Neither the Company nor Marble Point undertakes, and each specifically disclaims any obligation or responsibility, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's and/or Marble Point's expectations and estimates.
The information shown herein is estimated, unaudited, for background purposes only, representative as of the dates specified herein, subject to adjustment and not purported to be full or complete. Nothing herein shall be relied upon as a representation as to the current or future performance or portfolio holdings of the Company or any strategy or investment vehicle. Certain information presented herein has been obtained from third party sources and is believed to be reliable. However, neither the Company nor Marble Point represents that the information contained in this document (including third party information) has been independently verified or is accurate or complete, and it should not be relied upon as such. Index information, if any, has been provided for illustration purposes only. Any such information does not reflect the effect of transaction costs, management fees or other costs which would reduce returns. An investor cannot invest directly in an index.
Any of the views or opinions expressed herein are current views and opinions only and may be subject to change. Statements made herein are as of the date of this document and should not be relied upon as of any subsequent date. All information is current as of the date of this document and is subject to change without notice.
FootNotes
[1]) As at 13 February 2018. Calculated based on the Ordinary Shares held by Marble Point, EPCM Holdings LLC (an affiliate of Marble Point) and personnel of Marble Point and Eagle Point Credit Management LLC (an affiliate of Marble Point) ("EaglePoint"). This figure excludes amounts held by accounts managed by Marble Point or Eagle Point.
2) Targeted returns and dividends are referenced for illustrative purposes only and are based on various assumptions, estimates, and beliefs, including regarding future events, which may or may not prove to be correct or may change. There is no guarantee that any of the goals, targets or objectives described in this document will be achieved. Actual performance will vary and such variance may be material and adverse, including the potential for full loss of principal.
3) There are no management fees calculated or payable by MPLF on any of its assets that are invested in other entities managed by Marble Point (such as CLOs) as management fees are payable at the level of such underlying investments. As at 30 April 2018, all of MPLF's non-cash investments are in such entities. MPLF pays Marble Point a management fee quarterly in arrears in an amount equal to 0.40 per cent. per annum of MPLF's consolidated total assets, except that such fee is not payable in respect of MPLF's attributable primary market investments in other entities managed by Marble Point or its affiliates and which otherwise pay management fees to Marble Point or such affiliates. In this respect, Marble Point CLOs generally pay Marble Point collateral managers a management fee of up to 40 basis points per annum of such CLO's total aggregate principal balance of loans, cash equivalents and other investments as well as an incentive fee of up to 20 per cent. of cash on cash returns after the equity tranche of a CLO has achieved a fully-realized 12 per cent. cash-on-cash internal rate of return. In addition, the Funding Subsidiary pays Marble Point a management fee of 40 basis points per annum of the average daily aggregate principal balance of loans held by the Funding Subsidiary.
4) A CLO fee participation takes the form of a rebate which generally entitles the holder to a payment by the CLO of a percentage of the CLO management fees that are otherwise payable to the CLO's collateral manager. In the case of MPLF, this percentage is calculated such that the Company does not bear more than a 40 basis point management fee on its investment in a CLO's equity tranche.
5) Past Performance is not indicative of, or a guarantee of, future performance. The net returns shown herein are estimated, unaudited and subject to adjustment and reflect the net total NAV return for the periods shown since MPLF's admission to the London Stock Exchange (13 February 2018), inclusive of dividends paid to shareholders. For purposes of this report, MPLF's starting NAV per share as at admission is estimated and takes into account a deduction for estimated listing and offering expenses and pre-admission profits and loss of approximately $2.1 million in the aggregate. Such results reflect the deductions of applicable management fees and expenses at the Funding Subsidiary and underlying Marble Point CLO levels. The ICE Bank of America Merrill Lynch High Yield Index tracks the performance of U.S. dollar denominated below investment grade corporate debt publically issued in the U.S. domestic market. The Credit Suisse Leveraged Loan Index tracks the investable universe of the US-denominated leverage loan market. Index returns do not reflect any deductions for fees or expenses. You cannot invest directly in an
index.
6) Certain information presented in this report is shown on a look-through basis to the CLO equity investments attributable to MPLF and to the loans held directly by MPLF Funding Ltd. as at 30 April 2018 (except as otherwise noted) and reflects the aggregate underlying exposure of MPLF based on the portfolios of those investments (including, other than in the case of stated spread, average maturity, market value, and exposure to first-lien loans, cash held therein). The data is estimated and unaudited and is derived from CLO trustee reports received by MPLF relating to April 2018 and from custody statements and/or other information received from CLO collateral managers and other third party sources or otherwise relating to the Funding Subsidiary. Information relating to the market price of underlying collateral is as at 6 June 2018; however, with respect to other information shown, depending on when such information was received, the data may reflect a lag in the information reported. As such, while this information was obtained from third party data sources, April 2018 trustee reports and similar reports, other than market price, it does not reflect actual underlying portfolio characteristics as at 30 April 2018 and this data may not be representative of current or future holdings. Portfolio data is calculated based on the aggregate principal amount of assets.
7) For the purposes of the table above, "CLO NAV (% Change)" refers to the percent by which a CLO's equity net asset value changed from the December 2017 trustee report to the April 2018 trustee report. Information relating to the market price of the underlying collateral is as of 31 December 2017 and 30 April 2018, respectively. While this information was obtained from December 2017 and April 2018 trustee reports, it does not reflect actual underlying portfolio characteristics as at 30 April 2018 and this data may not be representative of current or future holdings. "CLO Par Build (% Change)" refers to the percent by which a CLO's par value (for purposes of the overcollateralisation test) changed from the December 2017 trustee report to the April 2018 trustee report. There is no guarantee that the Investment Manager will consistently build par value and the Investment Manager expects that there will be periods of time when par is lost as, for example, loans of companies for which the investment thesis has changed are sold to avoid the potential for increased future losses. Past performance is not indicative of, or a guarantee of, future performance.
8) The Supplemental NAV Attribution table presented in this report is shown on a look-through basis to the CLO equity investments attributable to MPLF and to the loans held directly by MPLF Funding Ltd. as at 30 April 2018. The components of the Supplemental NAV per share shown herein are estimated, unaudited and subject to adjustment and reflect the NAV for the periods shown since MPLF's admission to the London Stock Exchange (13 February 2018) to 30 April 2018. Past Performance is not indicative of, or a guarantee of, future performance.
9) Ownership and market data is as of 30 April 2018. CLO data is as of the most recent trustee reports received as of 30 April 2018. The statistics quoted do not include Marble Point CLOs that have been redeemed as of 30 April 2018. The summary of portfolio investments shown is based on the estimated fair value of the underlying closed positions on a non-consolidated basis as of 30 April 2018. Figures shown for Marble Point CLO Equity, Marble Point CLO Debt and Marble Point CLO Fee Participations are shown on a look-through basis to MPLF's aggregate attributable investment in such asset categories through its indirect investment in MP CLOM Holdings LLC and underlying Marble Point collateral managers, except that the "% Owned by Marble Point & Affiliates" column reflects the relevant tranche owned across all accounts managed by Marble Point, including MPLF. MPLF's attributable percentage ownership may be lower. "Funding Subsidiary" refers to MPLF Funding Ltd., a wholly-owned subsidiary of MPLF that invests in loans.
10) The CLO equity investments recognize investment income for US GAAP purposes on the accrual basis utilizing an effective interest methodology based upon an "Effective Yield" to maturity utilizing projected cash flows. "All-In Yield" represents the interest on floating--rate senior secured loans is based on a spread, or fixed rate, over LIBOR (which typically resets every 30 to 90 days) or a similar base rate. Rates shown represent the spread plus the base rate of the total interest rate per respective loan contract.
11) The Investment Manager believes that each quarterly vintage cohort includes all US broadly syndicated CLOs issued during the same quarter as that in which the Marble Point CLO was issued (based on an analysis of data in Intex, a third party data source for US CLOs). The quarterly vintage peer group data is referenced for comparison purposes only and is based on third party data. The Company has not independently verified any third party data and makes no representation as to the accuracy or completeness of such information. There is no guarantee that the Investment Manager will consistently build par value and the Investment Manager expects that there will be periods of time when par is lost as, for example, loans of companies for which the investment thesis has changed are sold to avoid the potential for increased future losses.
12) MPLF's investments in the respective CLOs have been made indirectly via its ownership interest in MP CLOM Holdings LLC. The information and data presented is estimated and unaudited and is based on the analysis of the Investment Manager. Effective yield figures are provided for illustrative purposes only based on the Investment Manager's analysis as of the date of the respective CLO issuer's pricing and the actual effective yield of the investment as recorded by the Company, MP CLOM Holdings LLC or other entity holding the investment, may vary over time.
13) Source: J.P. Morgan Default Monitor (1 June 2018).
14) Source: S&P LCD
15) Source: J.P. Morgan High-Yield and Leveraged Loan Morning Intelligence
16) Source: S&P LCD 1Q18 LCD Quarterly Review
17) The summary of portfolio investments shown is based on the estimated fair value of the underlying closed positions on a non-consolidated basis. Figures shown for Marble Point CLO Equity, Marble Point CLO Debt and Marble Point CLO Fee Participations are shown on a look-through basis to MPLF's aggregate attributable investment in such asset categories through its indirect investment in MP CLOM Holdings LLC and underlying Marble Point collateral managers. "Funding Subsidiary" refers to MPLF Funding Ltd., a wholly-owned subsidiary of MPLF that invests in loans.
18) The information presented is on a look-through basis to the CLO equity investments attributable to MPLF and to the loans held directly by MPLF Funding Ltd. (the "Funding Subsidiary") as at 31 March 2018 (except as otherwise noted) and reflects the aggregate underlying exposure of MPLF based on the portfolios of those investments (including, other than in the case of stated spread, average maturity, market value, and exposure to first-lien loans, cash held therein). The data is estimated and unaudited and is derived from CLO trustee reports received by MPLF relating to March 2018 and from custody statements and/or other information received from CLO collateral managers and other third party sources or otherwise relating to the Funding Subsidiary. Information relating to the market price of underlying collateral is as of month end; however, with respect to other information shown, depending on when such information was received, the data may reflect a lag in the information reported. As such, while this information was obtained from third party data sources, March 2018 trustee reports and similar reports, other than market price, it does not reflect actual underlying portfolio characteristics as at March 2018 and this data may not be representative of current or future holdings. Portfolio data is calculated based on the aggregate principal amount of assets The information presented is on a look--through basis to the Marble Point CLOs and the Funding Subsidiary.
19) Credit ratings shown are based on those assigned by Moody's Investors Service, Inc. ("Moody's") or, for comparison and informational purposes, if Moody's does not assign a rating to a particular obligor, the weighted average rating shown reflects the Moody's equivalent rating of a rating agency that rated the obligor provided that such other rating is available with respect to a CLO equity or related investment attributable to MPLF. In the event multiple ratings are available, the lowest Moody's rating, or if there is no Moody's rating, the lowest equivalent rating, is used. The ratings of specific borrowings by an obligor may differ from the rating assigned to the obligor and may differ among rating agencies. Ratings below Baa3 are below investment grade. Further information regarding Moody's rating methodology and definitions may be found on its website (www.moodys.com). This data includes underlying portfolio characteristics of MPLF's attributable CLO equity and the Funding Subsidiary portfolio.
20) Industry categories are based on the Moody's industry categorization of each obligor as set forth in CLO trustee reports relating to investments held by MPLF or, if such information is not available in CLO trustee reports or custody reports, the categories are based on equivalent categorizations as reported by a third party data provider. In addition, certain underlying borrowers may be re--classified from time to time based on developments in their respective businesses and/or market practices. Accordingly, certain underlying borrowers that are currently, or were previously, summarized as a single borrower or in a particular industry may in current or future periods be reflected as multiple borrowers or in a different industry.
Past performance is not indicative of, or a guarantee of, future performance. Additional information is available upon request.
(c) 2018. Marble Point Credit Management LLC. All Rights Reserved.
Enquiries:
Marble Point Loan Financing Limited
Investor Relations
www.mplflimited.com
P: +44 (0) 20 7259 1500
E: ir@mplflimited.com
Corporate Broker:
Stifel Nicolaus Europe Limited
Neil Winward, Corporate Broker - Investment Funds
P: +44 (0) 20 7710 7600
ABOUT MARBLE POINT LOAN FINANCING LIMITED
MPLF is a closed-ended investment company with its ordinary shares admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange. MPLF is invested in a diversified portfolio of US dollar denominated, broadly syndicated floating rate senior secured corporate loans via Collateralised Loan Obligations and related vehicles managed by Marble Point Credit Management LLC and its affiliates.
NOTE: PAST PERFORMANCE IS NOT INDICATIVE OF, OR A GUARANTEE OF, FUTURE PERFORMANCE.
Important Information
MPLF is a closed-ended investment company with its ordinary shares admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange. MPLF is invested in a diversified portfolio of US dollar denominated, broadly syndicated floating rate senior secured corporate loans via collateralised loan obligations and related vehicles managed by Marble Point Credit Management LLC ("Marble Point") and its affiliates. Marble Point is an investment adviser registered with the U.S. Securities and Exchange Commission.
This document has been issued by Marble Point Loan Financing Limited (the "Company" or "MPLF") and is the sole responsibility of the Company. This document and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with the Company or any of its affiliates. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of any investment and should consult its own legal counsel and financial, actuarial, accounting, regulatory and tax advisers to evaluate any such investment. This document is provided for informational purposes only, does not constitute an offer to sell the shares issued by the Company (the "Shares") or a solicitation of an offer to purchase any such Shares in the United States, Australia, Canada, the Republic of South Africa, Japan or any other jurisdiction, and is not a prospectus. This document may not be relied upon and should not be used for the purpose of making any investment decision.
Past performance is not a reliable indicator of current of future results. The value of investments may go down as well as up and investors may not get back any of the amount invested.
The value of investments designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currencies. Adverse movements in currency exchange rates can result in a decrease in return and a loss of capital.
This document is for information purposes only. No recipient may forward, reproduce, distribute, or make available in whole or in part, this document (directly or indirectly) to any other person. The distribution of this document in certain jurisdictions may be restricted by law and recipients of this document should inform themselves about and observe any such restrictions and other applicable legal requirements in their jurisdictions. This document, and the information contained therein, is not for viewing, release, distribution or publication in or into the United States, Australia, Canada, the Republic of South Africa or Japan or any other jurisdiction where applicable laws prohibit its release, distribution or publication, and will not be made available to any national, resident or citizen of the United States, Australia, Canada, the Republic of South Africa or Japan. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes must inform themselves about, and observe, any such restrictions. Any failure to comply with the restrictions may constitute a violation of the federal securities law of the United States or the laws of other jurisdictions.
The Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold in the United States to, or for the account or benefit of, U.S. persons unless they are registered under applicable law or exempt from registration. The Company has not been and will not be registered under the U.S. Investment Company Act of 1940, and investors will not be entitled to the benefits of such Act.
There is no guarantee that any of the goals, targets or objectives described in this document will be achieved. The investment strategies of the Company described herein may not be suitable for all investors and are not intended to constitute a complete investment program. Neither Marble Point nor the Company makes any representation or warranty (express or implied) with respect to the information contained herein (including, without limitation, information obtained from third parties) and each of them expressly disclaims any and all liability based on or relating to the information contained in, or errors or omissions from, these materials; or based on or relating to the use of these materials; or any other written or oral communications transmitted to the recipient or any of its affiliates or representatives in the course of its evaluation of the information herein.
None of the Company, Marble Point or any of their respective parent or subsidiary undertakings, or the subsidiary undertaking of any such parent undertakings, or any of such person's respective partners, shareholders, directors, members, officers, affiliates, agents, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any information or opinions presented or contained in this document nor shall they accept any responsibility whatsoever for, or make any warranty, express or implied, as to the truth, fullness, accuracy or completeness of the information in this document (or whether any information has been omitted from the document) or any other information relating to the Company, Marble Point or their respective subsidiaries or associated companies, in any form whatsoever, howsoever transmitted or made available or for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith. This shall not affect any liability any such person may have which may not be excluded under applicable law or regulation.
A Note on Forward Looking Statements. This document includes forward-looking statements. Forward-looking statements include all matters that are not historical facts. Actual results may differ materially from any results projected in the forward-looking statements and are subject to risks and uncertainties. Such statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, and other factors that may cause actual results to differ materially from the anticipated results expressed or implied by such forward-looking statements. The Company and Marble Point caution readers not to place undue reliance on such statements. Neither the Company nor Marble Point undertakes, and each specifically disclaims, any obligation or responsibility, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's and/or Marble Point's expectations and estimates.
The information shown herein is estimated, unaudited, for background purposes only, representative as of the dates specified herein, subject to adjustment and not purported to be full or complete. Nothing herein shall be relied upon as a representation as to the current or future performance or portfolio holdings of the Company or any strategy or investment vehicle. Certain information presented herein has been obtained from third party sources and is believed to be reliable. However, neither the Company nor Marble Point represents that the information contained in this document (including third party information) has been independently verified or is accurate or complete, and it should not be relied upon as such. Index information, if any, has been provided for illustration purposes only. Any such information does not reflect the effect of transaction costs, management fees or other costs which would reduce returns. An investor cannot invest directly in an index.
Any of the views or opinions expressed herein are current views and opinions only and may be subject to change. Statements made herein are as of the date of this document and should not be relied upon as of any subsequent date. All information is current as of the date of this document and is subject to change without notice.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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