Marble Point Loan Financing Limited Net Asset Value and Publication of Monthly Report (0599X)

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RNS Number : 0599X

Marble Point Loan Financing Limited

16 December 2019

16 December 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 29 November 2019 is as follows:

 
 Share class      November 2019         October 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 0.7462           USD 0.7434         USD 0.0027        (12.47%) 
               -------------------  -------------------  ----------------  -------------- 
 

MPLF's NAV total return was 0.37% in November. During this same period, the CSLLI, the ICE BAML HYI and the S&P 500 Index registered monthly total returns of 0.55%, 0.26% and 3.63%, respectively.(2)

Leveraged loan prices rebounded slightly in November as new issue loan supply remained muted and a continued flight to quality supported prices of better rated performing names. The average price of the CSLLI moved up to 95.40% as at 29 November 2019 from 95.22% as at 31 October 2019. Net retail fund outflows waned in November to $2.1 billion from $3.9 billion of outflows in October, according to JP Morgan. CLO formation in November remained relatively consistent with $9.7 billion of new issuance. While the higher rated segments of the loan market have continued to grind tighter, the stressed portion of the market exhibited continued volatility and remained a focal point for managers and investors. At 29 November 2019 the percentage of loans in the S&P/LSTA Index priced less than 80% increased to 5.89% from 5.37% at the end of October, its highest level since July 2016. Subsequent to month end, the average price of the CSLLI has further increased to 96.10% as at 12 December 2019.

During the month Marble Point opened a new loan accumulation facility ("LAF") which is presently ramping assets with the intention of converting into a new CLO issuance in Q1 2020. Subsequent to month end, MPLF invested $2.5 million in the facility; supported by this and third party equity capital, the total amount of ramped assets in the LAF was $25.0 million as at 29 November 2019.

During the month, MPLF closed a credit agreement with City National Bank establishing a revolving credit facility of up to $12.5 million. The facility will provide MPLF with flexible capital for acquiring investments in accordance with its investment objective and strategy and for general corporate purposes.

There were 21 new U.S. CLOs issued in November, representing approximately $9.7 billion of issuance, bringing the YTD total to $110.1 billion as compared to $123.2 billion for the corresponding 2018 YTD period, as reported by S&P/LCD. November also saw $2.4 billion of CLO reset issuance and $0.7 billion of CLO refinancing activity, bringing the aggregate year to date totals to $17.4 billion and $24.3 billion, respectively.

Two constituents of the S&P/LSTA Leveraged Loan Index, David's Bridal and Acosta, defaulted in November, resulting in the lagging 12-month default rate increasing to a nine-month high of 1.48%. MPLF had 0.29% exposure in its underlying investment portfolio to Acosta as at 29 November 2019 and no exposure to David's Bridal.

MPLF's November 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.

(2) 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

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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December 16, 2019 13:29 ET (18:29 GMT)