Marble Point Loan Financing Limited Net Asset Value & Publication of Monthly Report (0268N)

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RNS Number : 0268N

Marble Point Loan Financing Limited

19 September 2019

19 September 2019

Marble Point Loan Financing Limited

Unaudited Net Asset Value and Publication of Monthly Report

The net asset value ("NAV") of Marble Point Loan Financing Limited ("MPLF") as at the close of business on 30 August 2019 is as follows:

 
   Share class         August 2019           July 2019        Monthly Change      Total NAV 
                     NAV per Ordinary     NAV per Ordinary       in NAV per      Return since 
                         Share (1)            Share (1)          Share (1)        Admission 
                                                                                     (1) 
 Ordinary Shares        USD 0.8022           USD 0.8357        USD (0.0335)        (8.26%) 
                   -------------------  -------------------  ----------------  -------------- 
 

MPLF's NAV total return was (4.00%) in August. During this same period, the CSLLI, the ICE BAML HYI and the S&P 500 Index registered monthly total returns of (0.28%), 0.39% and (1.58%), respectively.(2) While loans delivered positive returns during the month, market yields on CLO equity widened, driving the drawdown for MPLF in August.

Leveraged loan prices declined throughout August as retail fund outflows persisted amidst a dovish consensus on future rates and macro uncertainty driven by concerns over economic expansion and trade. New issue loan volume in August was seasonally muted as issuers and dealers prepared for a traditionally more active post-holiday calendar. The average price of the CSLLI moved down to 96.29% as at 31 August 2019 from 97.02% as at 31 July 2019. Net retail fund outflows increased in August with $4.1 billion of outflows exceeding the $3.2 billion in July according to JP Morgan and marking the highest monthly tally since January. CLO formation in August remained healthy considering the summer holiday seasonal slow down with $7.3 billion of new issuance. While lower loan prices and macro uncertainty have contributed to lower valuations for CLO equity positions, we continue to believe the cash generative abilities of actively managed CLO equity may be enhanced through periods of volatility. The quarterly gross distributions attributable to MPLF from its CLO equity investments has continued to increase throughout 2019. Subsequent to month end, the CSLLI has moved up to 96.50% as at 16 September 2019.

On 29 August MPLF committed to invest a total of $20.6 million for a 54.4% interest in the equity tranche of Marble Point CLO XVI in connection with the pricing of Marble Point's most recent issuance. Marble Point CLO XVI is expected to have a reinvestment period of approximately five years, a two year non-call period and a 13 year final maturity. Its expected weighted average cost of debt is LIBOR+210 basis points and it has an estimated effective yield of 13.0-14.0% as at the pricing date of the transaction.

During August, MPLF funded an incremental $3.0 million into a loan accumulation facility ("LAF") in support of the continuation of accumulating loans with the intention of converting the LAF into Marble Point CLO XVI, bringing MPLF's total investment in the LAF to $20.0 million as at 29 August 2019. In connection with the pricing of Marble Point CLO XVI on 29 August, MPLF redeemed its LAF investment and will realize the associated carry upon closing of the CLO on 3 October 2019.

There were 16 new U.S. CLOs issued in August, representing approximately $7.3 billion of issuance, bringing the YTD total to $81.7 billion as compared to $92.5 billion for the corresponding 2018 YTD period, as reported by S&P/LCD. August also saw $1.9 billion of CLO reset issuance and $1.9 billion of CLO refinancing activity, bringing the full year totals to $14.1 billion and $18.7 billion, respectively.

No constituents of the S&P/LSTA Leveraged Loan Index defaulted in August, resulting in the lagging 12-month default rate decreasing slightly to 1.29%, as reported by S&P/LCD.

MPLF's August 2019 Monthly Report is available on its website: www.mplflimited.com

(1) NAV figures are provided for informational purposes only and are unaudited, estimated by Marble Point Credit Management LLC ("Marble Point"), the investment manager of MPLF, and subject to adjustment. Marble Point estimates MPLF's NAV on a monthly basis as at the end of each month. Estimates with respect to a date falling on a calendar quarter end are subject to revision when the quarterly NAV is determined. NAV is calculated as the sum of the value of MPLF's investment portfolio, any cash or cash equivalents and other assets less liabilities. NAV total return figures shown are estimated, unaudited and subject to adjustment and reflect the net total NAV return, inclusive of dividends, for the periods shown and as from MPLF's admission to the Specialist Fund Segment of the main market of the London Stock Exchange on 13 February 2018, after taking into account applicable listing and offering costs and pre-admission profits and loss. Monthly and cumulative performance figures are non-annualised and such results reflect the deductions of applicable management fees and expenses at the underlying investment levels.

(3) The indices shown have not been selected to represent a benchmark for MPLF's performance, but rather to allow for comparison of MPLF's returns to those of known, recognized and/or similar indices. The Credit Suisse Leveraged Loan Index (CSLLI) tracks the investable universe of the U.S. leveraged loan market. The ICE BofAML US High Yield Index (ICE BAML HYI) tracks the performance of USD-denominated below investment grade corporate bonds publically issued in the U.S. domestic market. The Standard & Poor's 500 Index (S&P 500) tracks the performance of U.S. public equity markets and is based on the market capitalization of 500 large companies having common stock listed on NYSE or NASDAQ. The performance of any index is not an exact representation of any particular investment as you cannot invest directly in an index.

Past performance is not indicative or a guarantee of future performance.

This release contains inside information.

Enquiries:

Marble Point Loan Financing Limited

Investor Relations

T: [phone]

E: [e-mail]

Website: www.mplflimited.com

Corporate Broker:

Stifel Nicolaus Europe Limited

Neil Winward, Corporate Broker - Investment Funds

T: [phone]

IMPORTANT INFORMATION

Marble Point Loan Financing Limited (the "Company") is a closed-ended investment company incorporated in Guernsey with its ordinary shares ("Shares") admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange (ticker: MPLF.LN). The Company is invested in a diversified portfolio of US dollar denominated, broadly syndicated floating rate senior secured corporate loans via CLOs, loan accumulation facilities and other vehicles managed by Marble Point Credit Management LLC ("Marble Point") or its affiliates. Marble Point is an investment adviser registered with the U.S. Securities and Exchange Commission.

This document is provided for informational purposes only and does not constitute an offer to sell any Shares, notes or other securities (collectively, "Securities") issued by the Company or a solicitation of an offer to purchase any such Securities in the United States, Australia, Canada, the Republic of South Africa, Japan or any other jurisdiction. This document may not be relied upon, and should not be used, for the purpose of making any investment decision. 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. Any 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 has been issued by the Company and is the sole responsibility of the Company.

The Securities 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.

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.

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 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.

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.

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.

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.

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.

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 [e-mail] or visit www.rns.com.

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September 19, 2019 12:11 ET (16:11 GMT)