TIDMRMDL TIDMTTM
RNS Number : 2942Y
RM Secured Direct Lending PLC
12 May 2021
RM Secured Direct Lending PLC
("RMDL" or the "Company")
LEI: 213800RBRIYICC2QC958
Update on refreshed investment focus, Company name change and
result of Shareholder consultation
RMDL, an investment trust specialising in secured debt
investments, provides the following update on its portfolio
progress in line with its refreshed investment focus, the change to
the Company's name and the recent consultation with Shareholders
regarding the liquidity opportunity.
Growth opportunity with refreshed investment focus
RM Funds (the "Investment Manager") has made good progress in
growing the portfolio in line with its focus on all new lending
being allocated to Social & Environmental Infrastructure assets
across six target sectors:
-- Accommodation
-- Healthcare
-- Childcare & Education
-- Clean Energy & Renewables
-- Waste Management
-- Energy Efficiency & Carbon Reduction
The revised investment strategy gives the Company's investors
further exposure to critical infrastructure assets at the forefront
of providing essential services to society, less correlated to the
broader economic cycle and with appealing risk adjusted returns in
line with RMDL's performance targets.
The Investment Manager has an attractive pipeline of
high-quality transactions across its six target sectors with robust
credit metrics and significantly higher yields than would be
available in the public markets.
Portfolio Activity
A further Healthcare investment closed during the month of April
taking the percentage of the portfolio invested in Social &
Environmental Infrastructure to 28%. This is expected to rise to
35% when commitments to be funded over the next 12 months are
considered. The Investment Manager anticipates that by year end
2021 over 50% of the portfolio will be invested within the target
sectors.
In addition, RM Funds provided additional funding under the
Coronavirus Business Interruption Loan Scheme ("CBILS") for
eligible borrowers, following which CBILS loans now account for 22%
of prevailing unaudited NAV, significantly enhancing the
portfolio's counterparty exposure. The Investment Manager expects
existing pre-qualified borrowers to access a further c.GBP8m in
CBILS funding by the end of the month.
Company Name Change
To ensure consistency between the name of the Company and its
refreshed investment focus on lending to Social & Environmental
Infrastructure sectors, the Company confirms that on 11 May 2021,
pursuant to the powers conferred under the Company's Articles of
Association, the Board resolved to change the Company's name to RM
Social & Environmental Infrastructure Income PLC.
The Company is making necessary filings at the Registrar of
Companies to effect the change of name; however there is expected
to be a delay in Companies House effecting the change. A further
announcement will be made at that time. In conjunction with the
change of name, the Company's TIDM will change to 'RMII'. The
Company's ISIN and SEDOL will remain unchanged. The Company will be
seeking a change to sector classification in due course.
Impact Framework
With regards to the Impact Measurement and Management framework
("Impact"), The Good Economy expects to finalise the base line
Impact scoring of the portfolio during the month of May. This will
be critical for the assessment of Impact lending, with progress to
be published within the Company's annual Impact Report alongside
the 2021 Annual Report and Accounts.
Update on Shareholder consultation regarding the liquidity
opportunity
Within its 2020 Annual Report & Accounts issued on the 29
March 2021, the Company announced that, in connection with the
proposal detailed in its 2016 IPO Prospectus, to offer Shareholders
a Liquidity Opportunity prior to its fourth annual general meeting
(which will be held on 8 June 2021), it would engage with its
Shareholders to consider their liquidity needs and structure a set
of proposals that are suitable and cost effective.
Since then, the Company has consulted widely with Shareholders
representing 90% of shares currently in issue. The Board is pleased
to announce that Shareholders are overwhelmingly supportive of the
Company's performance, particularly during the pandemic and its
recovery, as well as the updated investment focus and strategy.
There was very limited appetite from those Shareholders to
participate in a liquidity opportunity. Any Shareholder that has
not been consulted who wishes to discuss their options should
contact their broker.
In light of this positive feedback, the lack of Shareholder
demand for a near-term liquidity opportunity, and noting that
putting together formal liquidity proposals for Shareholders would
impose a disproportionate administrative and cost burden on the
Company, the Board has determined that the next liquidity
opportunity will be put to Shareholders in three years' time, as
per the Company's prospectus.
Following the extensive consultation exercise with Shareholders
the Board confirms that the weighted average life of the portfolio
will not materially exceed three years, immediately prior to the
next liquidity opportunity. In addition, should the shares trade at
an average discount of more than 0 per cent. as measured over the
six-month period commencing on 1 October 2022 and ending on 31
March 2023, the Board will seek to bring the liquidity opportunity
consultation forward by 12 months to two years' time(1) . i.e.
prior to the 2023 AGM.
Norman Crighton, Chairman of RMDL, commented:
"The Board would like to thank all Shareholders for their time
in providing feedback to this process. The problems the economy has
been facing due to COVID 19 are fading fast. The portfolio is
performing well and although we continue to closely monitor those
assets which have been most impacted by the pandemic, we expect
these to continue to improve in line with peers. We are excited
about the depth of opportunity to grow the portfolio with our
refreshed strategy and believe that the target returns and positive
social impact from our investments will also broaden our appeal to
new and different investors. Our priority remains to restore the
trading of the Company back to a premium to NAV and increase the
size of the Company. The Investment Manager has an excellent
pipeline of high quality assets that will enable us to grow the
portfolio, delivering returns for our investors and delivering
positive impact to society."
(1) The average discount will be calculated by dividing the sum
of the discount or premium (as the case may be) on each business
day (adjusted for dividends) by the number of such business days.
The premium or discount on any given day is to be calculated by
reference to the closing share price and the NAV announced for that
month. Furthermore, the existing discount management policy
regarding the repurchase of shares as set out in the IPO prospectus
will be maintained.
For further information, please contact:
RM Capital Markets Limited - Investment Manager
James Robson
Pietro Nicholls
Tel: 0131 603 7060
International Fund Management - AIFM
Chris Hickling
Shaun Robert
Tel: 01481 737600
Tulchan Group - Financial PR
James Macey White
Elizabeth Snow
Tel: 0207 353 4200
PraxisIFM Fund Services (UK) Limited - Administrator and Company
Secretary
Brian Smith
Ciara McKillop
Tel: 0204 513 9260
Nplus1 Singer Advisory LLP - Financial Adviser and Broker
James Maxwell
Asha Chotai
Peel Hunt LLP - Financial Adviser and Broker
Luke Simpson
Liz Yong
About RM Secured Direct Lending PLC (renamed RM Social &
Environmental Infrastructure Income)
The Company aims to generate attractive and regular dividends
and positive social impact by lending to assets at the forefront of
providing essential services to society.
Its diversified portfolio of 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/
About RM Funds
RM Funds is an alternative asset manager. Founded in 2010, with
offices in Edinburgh, and London, the firm manages capital on
behalf of institutional investors, multi-asset allocators, wealth
managers and retail investors. RM Funds focuses on real asset
investing across liquid alternatives and private markets.
RM Funds is a delivery partner to the British Business Bank in
connection with the Coronavirus Business Interruption Loan Scheme.
RM Funds is a trading name of RM Capital Markets Limited.
RM Funds is a signatory to the Principles of Responsible
Investment.
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