Chenavari Capital Solutions has released its accounts for the year ended 30 September 2015. Over the period the NAV total return was 7.7% and they paid dividends of 7.5p. At the end of the period the shares were trading on a discount of 1.2%. down from an 8.7% premium at the start of the year. Since the end of the period the discount has widened again to stand close to 10% today. The company has said it will buy in stock if the average discount exceeds 7.5% for 90 days.
During the Year, the Company invested £65m in bank capital solutions transactions through the purchase of seven primary transactions (new deals) for a total of £50.9m and four secondary transactions (existing deals) for a total of £14.1m. At 30 September 2015, the Company was 92% invested in fifteen positions including eleven primary transactions valued at £92.4m and four secondary transactions valued at £27.1m. Shareholders approved the extension to the investment period to 31 December 2016 provided that the company pays two lots of 2p dividends for Q4 2015 and Q1 of 2016. They say the transactions that they are currently working on include an Italian SME equity tranche (of a securitised loan portfolio), a corporate loan tranche from a French bank, a portfolio of Spanish performing mortgage loans and an Austrian SME mezzanine tranche.
On 6 January 2016 Chenavari Capital Solutions announced a €4m investment in junior instruments in a short term loan warehousing transaction backed by a portfolio of leveraged corporate loans. The loans are primarily European and UK corporates with ratings at or higher than B-. The portfolio is diversified with an expected maximum concentration of 4% by group of borrowers. After this deal they were 94% invested.
CCSL : Chenavari Capital Solutions suffers from discount widening