RM Secured Direct Lending PLC Net Asset Value(s) (4476F)

TIDMRMDL TIDMRMDZ TIDMTTM

RNS Number : 4476F

RM Secured Direct Lending PLC

15 July 2019

 
                     RM Secured Direct Lending Plc and RM ZDP PLC 
 
                              ("RMDL" or the "Company") 
 
                              LEI: 213800RBRIYICC2QC958 
 
                                   Net Asset Value 
 
 RMDL announces that its unaudited net asset value per ordinary 
  share as at 30 June 2019, on a cum income basis, was 98.00 pence 
  (31 May 2019: 99.59 pence). 
 
            RM ZDP PLC announces that the unaudited accrued capital entitlement 
             per ZDP share as at 30 June 2019 was 104.38 pence (31 May 2019: 
             104.09 pence). 
 
             NAV % Total Return for the month was 0.41% and brings a total 
             for NAV % Total Return for the first half 2019 to 4.82%. The 
             Ordinary Share NAV as at 30(th) June 2019 was 98.00 pence, which 
             is 1.59 pence lower than the end of May. The monthly movement 
             in NAV was mainly driven by the ex-dividend effect of the 2.00 
             pence (total) declared in March and paid in June, the positive 
             net interest income (net of expenses) of 0.63 pence and a decrease 
             in portfolio valuations of 0.22 pence. 
             During the quarter there were three new investments, 34 drawdowns 
             on existing facilities and four Loans matured. Since inception 
             over 65 investments have been made by the Investment Manager 
             on behalf of the Company, demonstrating the Investment Manager's 
             ability to both deploy/recycle capital and earn attractive risk-adjusted 
             returns. The portfolio now consists of 35 investments split across 
             13 sectors. The average yield on the portfolio decreased by 1 
             bps to 8.61% [in the quarter]. Invested capital currently stands 
             at GBP124m, with the RCF facility partial drawn. The weighted 
             average life of the Loans within the portfolio is 3.46 years 
             and duration of 1.33 years. 
             Overall, private debt represents c.95% of the portfolio's holdings 
             with the full breakdown as follows: 57% bilateral loans, 38% 
             within club or syndicated private loans and 5% in liquid corporate 
             debt. 
             New Investments in the Quarter 
             Student Accommodation 
              *    GBP6m loan to project finance a student accommodation 
                   development site in Coventry. This loan is secured by 
                   a first charge over the property. The transaction has 
                   been structured as a typical, with an all asset 
                   debenture and enhanced lender control via project 
                   bank accounts and fortnightly monitoring by a 
                   quantity surveyor (Lender's monitor) acting on behalf 
                   of the Lender. Funds are not released until the 
                   relevant costs have been incurred and signed off by 
                   the Lender's monitor, as is typical of transactions 
                   of this nature structured by the Investment Manager, 
                   meaning that capital is advanced only as and when 
                   value has been created. 
 
 
             Hotel Financing 
              *    GBP900,000 (three year tenor, 10%) commitment to a 
                   hospitality and leisure real estate asset primarily 
                   leased to Travelodge. Benefits from security over the 
                   real estate asset and a 17 year unexpired contracted 
                   cashflow. 
 
 
             Food Manufacturing 
              *    GBP1.5m increase in existing loan facility (six year, 
                   9.5%) participation to Valeo Foods (total: GBP4.5m), 
                   a branded food manufacturer. 
 
 
              *    GBP3m new investment in Premier Foods' existing bond 
                   (three year tenor, 5.8%). 
 
 
 
             Pipeline 
             The pipeline remains healthy with no signs of slowing. The Investment 
             Manager is conducting due diligence and documentation on several 
             transactions which are expected to close during Q3. The Investment 
             Manager expects that it will fully utilise the RCF facility in 
             the near term . 
 
             Outlook 
             The Investment Manager remains confident in its ability to originate 
             and close high quality investments. It is focused on deploying 
             and recycling capital into non-cyclical sectors, with real asset 
             security and limited correlation to wider equity markets. The 
             Investment Manager recognises the underlying risks to global 
             equities as a result of the ongoing political and economic uncertainty, 
             particularly as we head into Q3. The monitoring of the existing 
             loans remains a priority, with all loans marked-to-market on 
             a monthly basis reflecting perceived or actual risks to underlying 
             Loan performance. The Investment Manager will continue to maintain 
             this strict discipline relating to the due diligence, structuring, 
             documentation and overall credit quality of existing and prospective 
             investments. 
 
 The Company also announces that the Monthly Report for the period 
  to 30 June 2019 is now available to be viewed on the Company 
  website: 
 https://rmdl.co.uk/investor-centre/monthly-factsheets/ 
 
 END 
 
  For further information, please contact: 
 RM Capital Markets Limited - Investment Manager 
 James Robson 
 Pietro Nicholls 
 Tel: [phone] 
 
 International Fund Management - AIFM 
 Chris Hickling 
 Shaun Robert 
 Tel: [phone] 
 
 Tulchan Group - Financial PR 
 James Macey White 
 Elizabeth Snow 
 Tel: [phone] 
 
 PraxisIFM Fund Services (UK) Limited - Administrator and Company 
  Secretary 
 Anthony Lee 
 Ciara McKillop 
 Tel: [phone] 
 
 Nplus1 Singer Advisory LLP - Financial Adviser and Broker 
 James Maxwell 
 Lauren Kettle 
 Tel: [phone] 
 
 About RM Secured Direct Lending 
 
 RM Secured Direct Lending Plc ("RMDL" or the "Company") is a 
  closed-ended investment trust established to invest in a portfolio 
  of secured debt instruments. 
 
 The Company aims to generate attractive and regular dividends 
  through loans sourced or originated by the Investment Manager 
  with a degree of inflation protection through index-linked returns 
  where appropriate. Loans in which the Company invests are predominantly 
  secured against assets such as real estate or plant and machinery 
  and/or income streams such as account receivables. 
 
 For more information, please see 
 https://rmdl.co.uk/investor-centre/monthly-factsheets/ 
 

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July 15, 2019 02:00 ET (06:00 GMT)