Slf Realisation Share Discussion Threads

[chucko1] 26/7/2023 10:05

Not really - they bought a similar amount (proportion) of the C shares.

[reddirish] 26/7/2023 09:48

Looks as if Morgan Stanley (10% holding on the ords) have a belief. A cheap option on the glass manufacturer?

[catabrit] 20/7/2023 11:57

The upside in the ords is potentially so big that I’m quite happy to wait, de risk via the distributions and see what happens. It’s only a small percentage of my NAV.

[chucko1] 20/7/2023 08:04

Yes, about 4.5pps and that would be a total game changer. But recent management comments on that facility are pretty underwhelming. Lower power prices has likely lowered the cash flow pressure that was holding refinancing back and the Ords are for the extremely patient.

[feuille] 20/7/2023 07:53

There is a prize on the Ords if the glass manufacturer refinances at 17m EUR.

[chucko1] 20/7/2023 07:52

2.5p again suggests decent amortisation flows and interest at around 10% as well as the already announced circa 1.5pps refinancing. At around 35% discount to a 6.6p sp, there is still very significant value on the Cs. Risky, though, to the extent the portfolio is now down to essentially four items.

The Cs just keep giving. The Ords, meanwhile, barely have a heartbeat. Still remarkable to me that there are more posts on this bb focusing on the Ords rather than the triple your investment Cs (well, if you reinvested, of course).

[spectoacc] 20/7/2023 07:37

Rarely right that fast! 2.5p on the C's.

Oh, hi @feuille - so what's my Book? You must know, if you've been able to avoid it? Intrigued.

[feuille] 20/7/2023 07:22

1pps payout.

Wednesday 9 August Ex-Date

[2wild] 19/7/2023 22:26

326 million bottles of champagne shipped last year, that's an awful lot of heavy glass and above pre pandemic levels. Plus around 7.5 billion bottles of other wines are also produced in France every year. With energy prices well below last year's Peaks, the French glass producer should be doing fine.

[feuille] 19/7/2023 19:31

I thought the ADs have mainly , if not all, gone ?

Anyway, no one is buying the Ords now. It's a case of holding until the grim end now.

[chucko1] 19/7/2023 18:45

Will there be a payout? £1.8mn over 356mn shares implies 0.5pps. Is there income to add on top of this? Not on the Ords as I suspect there has been little or no net income on the ADs and the French loan to offset the costs which are now skewing towards the Ords as the Cs manage to pay down. Not sure they bother with 0.5pps, but I could be wrong.

Conversely, the Cs have 4 principal loans remaining (one having recently repaid) and full repayment of any one IS material they appear to be pretty uniform in scale, discount and probability. Additionally, each of the loans appears to be current and therefore income at some 10% per annum os being received to more than offset the costs (far more).

In short, as I have previously and often argued (on a parallel board to this), the Cs is a stellar risk/reward whereas the Ords is an out of the money option whose kicker is either the French loan (increasingly unlikely, hence I sold my remaining few hundred k) or the ADs which increasingly appear rather hopeless, and potentially sucking in further capital.

To be fair, though, the repayment of this loan is just about the only hole the management have scored in par on the Ords course. The ADs are the equivalent of an octuple bogey.

[feuille] 19/7/2023 17:33

1/6th or even 1/12th is not trivial.

The glass manufacturer is the make or break though, at this stage,

[spectoacc] 19/7/2023 17:07

Today's news should mean another payout ahead on both classes.

[chucko1] 19/7/2023 17:03

The raison d'être of SLFR is the repayment of loans associated with the ADs or the French glass company.

This is a tiddler by comparison and was generally expected to make full repayment. The only reason it is 1/6th of the share price is that the rest is at a tremendous implied discount. The triviality of this repayment can be associated with the triviality of the movement in the share price today. The Cs moved the same amount, as it happens, so this could even be associated more with the low core CPI print.

[feuille] 19/7/2023 16:50

The market cap is only £11m , so £1.8m is not trivial.

[chucko1] 19/7/2023 16:02

Trivial in context.

[catabrit] 19/7/2023 11:39

Nice to see an asset realisation in excess of book. Small deal though.

[babbler] 07/6/2023 07:46

Why the big drop today?

[ctrader3] 19/5/2023 06:17

NET ASSET VALUE UPDATE





SLF Realisation Fund Limited (the "Company") announces the following NAV update.

Ordinary Shares:

As at 31 March 2023, the unaudited estimated NAV was £ 35.1 million or 9.85 pence per Ordinary Share. This compares to £43.9 million or 12.34 pence per Ordinary Share from the December 2022 unaudited NAV.

The reduction was due to several asset realisations, notably the Teeside AD plants Borrowers 1 and 2. As announced on 27 March Borrowers 1 & 2, two anaerobic digestions plants located in Teesside were refinanced with the positions being restructured and sold. Borrower 1 repaid the fund £6.3 million and Borrower 2 repaid the fund £3.2 million. They had a carrying values of £6.8 million and £3.7 million respectively as at 31 December 2022. Relatively small exposures to Borrowers 1 & 2 remain due to deferred consideration elements of the settlement.

A further reduction related to increased uncertainty on payments from Borrower 6, a French glass manufacturer. Borrower 6 is reliant on securing new financing to repay the Company's facility, however its efforts are constrained by high costs, in particular energy and raw material price inflation

C Shares:

As at 31 March 2023, the unaudited estimated NAV was £17.7 million or 12.75 pence per C Share. This compares to £18.3 million or 13.18 pence per C Share from the December 2022 unaudited NAV.

Since 31 March 2023, the Company has returned further capital amounting to 3.5p per Ordinary Share and 3.5p per C Share.

[gopher] 18/4/2023 16:37

My guess for the C shares is 8.5p of NAV post this distribution which is mainly financed by the fridge recycling plant refinance of £3.5 million received during period. I can see an end in sight by 31st Dec which was the company's original target.

[ctrader3] 27/3/2023 17:00

very little of value left, except borrower 6 Glass Manufacturing,
the big danger is if they go bust.

[ctrader3] 27/3/2023 15:35

SLF Realisation Fund Limited

("the Company")

LEI: 2138007S3YRY3IUU4W39

RETURN OF CAPITAL IX



The Board of Directors of SLF Realisation Fund Limited is pleased to announce that it has resolved to return an amount of 3.5 pence per share to Ordinary Shareholders, being £12.5m based on the current number of shares in issue, and to return an amount of 3.5 pence per share to C Shareholders, being £4.8m (the "Distributions").



The Distributions will be effected by way of an issue of redeemable B shares and D shares to existing Shareholders pro-rata to their shareholding on the record date set out below and the subsequent redemption of those shares.

[ctrader3] 27/3/2023 11:47

11 November 2022

SLF Realisation Fund Limited

RETURN OF CAPITAL VIII




The Board of Directors of SLF Realisation Fund Limited is pleased to announce that it has resolved to return an amount of 1.5 pence per share to Ordinary Shareholders, being £5.3m based on the current number of shares in issue

----------------
10.6 mill would equal 3p a share returned.

[ctrader3] 27/3/2023 11:45

SLF Realisation Fund Limited


Asset Realisations



The Board of the Company is pleased to announce that within the Ordinary Share Class portfolio, Borrowers 1* & 2*, two anaerobic digestions plants located in Teesside have refinanced. The positions were restructured and sold.

Borrower 1 repaying the fund £6.3 million plus the potential for a further £0.5 million of deferred consideration to be adjusted for the completion balance sheet.

Borrower 2 repaying the fund £3.2 million plus the potential for a further £0.5 million of deferred consideration again to be adjusted for the completion balance sheet.

A further additional consideration is payable should the plant achieve high output levels under the new owners over the coming 24 months, though this appears unlikely at present.

They had a carrying values of £10.6 million and £9.1 million respectively as at 30 June 2022. The reduction in value reflects significant shortcomings uncovered during due diligence and the failure of the plants to effectively increase output since June 2022.



*by reference to the half-yearly financial report to 30 June 2022.