Vpc Specialty Lending In... Share Discussion Threads

[2wild] 17/3/2024 12:12

3 loans totaling"38 million, 1 with an early redemption fee, were repaid in December. Including the 3 small loans repaid early January, could easily see another 20 to £40 million repaid by early April. Plus a spate of All Time Highs on US equitie indexes during February and early March, could see equities sold or taken out by takeover soon.

Of course matters may take a bit longer. Given 15% Dividend yield and 36% discount to NAB, hardly an issue.

[grahamg8] 15/3/2024 18:45

2wild the detailed return info is on the January factsheet, page 2. OK, so it's in the form of a Gantt chart and the actual amounts have to be interpreted, a scale rule will do the trick. IMO we are unlikely to see anything till June/July at the earliest. The B shares are a good forward indicator of confidence. But still too much doubt over possible bad debts, so I'm just a hold at present.

[2wild] 15/3/2024 15:43

So will have 2p ps returned next week and providing resolutions path on April 5. Could get RNS MONDAY 8th,detailing return info. Perhaps first payment by 30 April.

[chucko1] 15/3/2024 12:21

Wilwak, personally, I do not really feel trapped. One way or another, full value is more likely to be achieved the longer it takes. But the majority will be returned within a couple of years. It would only matter if I had a significant amount (percentage of portfolio), but currently, it stands at around 6%. Might add further on the next update or other key information.

Note a further reduction in leverage published in the Jan update. Non-recourse gearing now at zero. Average debt cost was almost 9%, so the gross income is something to keep an eye on. It has fallen recently, but it is not easy to attribute changes in gross income to anything specific over short time frames. I suspect IFRS9 plays a part in that and this is only broken out in the semi statements, and even then you need to look carefully. Given that this is 6% of my equity stuff, life feels too short.

[wilwak] 15/3/2024 10:57

This B share process simply ensures the payments are classified as a ‘return of capital’ rather than an income taxable ‘dividend̵7; payment.

You never actually receive the B shares… just the money.

It really is in the best interest of smaller shareholders. Well done VPC.

Inside an ISA it doesn’t really matter how it’s done but outside of an isa using this method is vital.

Some other recent wind-up’s didn’t use this method which meant the entire return of capital was taxable as income. Pretty appalling!

I had wondered if they could implement a share buyback process to control the large discount. If they bought back shares in the market at say 15% discount it would allow some shareholders a quick exit route whilst benefitting the remaining shareholders too.

The current discount means we’re all trapped and having to wait for the capital return payments.

[chucko1] 15/3/2024 10:12

I do not think so (and it has also not happened in any of the 6 or 7 B and D share issuances from SLFR/X). In fact, the share account has never been credited with actual shares, just the cash proceeds.

[feddie] 15/3/2024 08:54

Would it work within an ISA?
Is there a risk of the broker (II, AJB, etc.) removing the B shares from the ISA because they "don't trade in a major exchange" before they get redeemed?

[chucko1] 15/3/2024 08:31

Specto, something we are quite used to re. SLFX!! Yes, they get automatically redeemed into cash around 2 weeks after issue. You don't have to do a thing.

[spectoacc] 15/3/2024 07:34

Class B's get redeemed shortly after being issued. Is a means of doing a capital return and not an income return.

Thought there might be some dates/amounts in this morning's RNS, but nothing new that I can see.

[creme de menthe] 15/3/2024 07:33

Can class B shares be sold within 12 months without attracting capital gains?

[waterloo01] 15/3/2024 07:11

B share seems a equitable approach.

[wilwak] 14/3/2024 22:18

I suspect that once they announce the plans for the cash return schedule and mechanism the shares will bounce.

My basic calculations imply that the current share price is safely covered thus giving a free ride on the remainder of the portfolio.

6th April I’ll be buying more if the price holds at this level. A nice ISA punt.

[smidge21] 11/3/2024 20:16

https://theoakbloke.substack.com/p/vsl-ating

[solarno lopez] 11/3/2024 08:38

Are the shares a gift at this level ?

[feddie] 09/3/2024 11:31

Good news that “The Company and its advisers have resolved the technical issues” related to the capital return mechanism. Shareholders should expect that a circular with next steps “will be released in the near future” to be voted in the GM. Hopefully the circular will contain an updated view on dividends and a more defined plan for capital return, even if the latter seldomly works as planned (Based on past similar cases)

[cousinit] 09/3/2024 10:51

Chucko, agree.

One thing did jump out at me though.

72% of NAV in (asset backed?) loans

The top 10 positions total £127m

That suggests a long tail (which I didn't think was the strategy) as 10th position £3m and £40m outside top 10?

[chucko1] 08/3/2024 15:54

Monthly just out. Five pages rather than the normal three, with good detail on top 10 holdings in both equity and asset backed. If only they had thought to do that a while back! Now it is possible to see a little more clearly what is causing capital variations, the source of the previous few months' NAV grief. The commentary is far more detailed, as though someone had asked them to get their fingers out.

Some interesting activity which suggests all is far from lost wrt equity and convert stuff.

[spectoacc] 06/3/2024 13:22

Seems it wants to test the ATL.

[rambutan2] 23/2/2024 22:36

If i remember correctly, they do hold approx 20% in another fund they run, so have every incentive to do a good job you would have thought.

[riskvsreward] 23/2/2024 20:03

It is looking cheap on paper if the management and the NAV can be trusted, but that is the million dollar question. My caution arguing against buying more is that if it is such a bargain why don't I see the insiders like the directors and fund managers piling in?

[chucko1] 23/2/2024 16:53

30 fvcking percent????????

Now I know why you are called "2wild". Mind you, I have been adding apace. I am not sure how much cash they have, as they have been paying off any borrowing as fast as they can. Also, they cite only a 1% cash holding in their asset breakdown.

At prices near 55p, the odds are stacked in your favour, according to my modelling. But 30% is toppy as we can never know everything. And we are not always right.

[2wild] 23/2/2024 15:54

Well, I've been top slicing The rips on my top 10 holdings and reinvesting here Apps prices between 54.6 and 56.2 pence this week. I got a bit carried away and now, have just over 30% of my portfolio in VSL. We know They have tens of millions of pounds in cash. Just waiting to Be returned to shareholders.

[solarno lopez] 22/2/2024 11:21

So are we buyers or sellers ?