Blackstone/GSO delivers 8% return for 2015

Blackstone/GSO Loan Financing has published its accounts for 2015 (figures are in Euros unless otherwise indicated). The fund returned just over 8% for the year. Over the period its NAV fell from 99 cents to 98.39 cents and its share price fell from 101 cents to 98 cents. BGLF paid dividends of 8 cents (2 cents per quarter) for the year. The report says the company will continue to target a 2% quarterly dividend, with the expectation of progressive growth in the dividend yield over time.

During the year Blackstone/GSO loan Financing established four CLO transactions (three European CLOs and one U.S. CLO) and retained EUR95 million par value of CLO Income Notes of these transactions bringing the total of the retained CLO Income Note portfolio to EUR199 million par value. The directly held loan portfolio generated income of approximately 13% whilst the average annualised distribution received on the CLO Income Note portfolio was 19%. The portfolio began the year more heavily weighted to the directly held loan portfolio and increased its allocation to CLO Income Notes as the year progressed. The heavier weighting towards the lower yielding portfolio combined with mark-to-market movements, financing costs, FX shifts and expenses resulted in a full-year net portfolio return of 8.11%. Each of the CLOs that Blackstone/GSO loan Financing established is in compliance with all over-collateralisation and portfolio profile tests.

As at 31 December 2015, the portfolio was invested in line with Blackstone/GSO loan Financing ‘s investment policy diversified across 35 issuers held through the direct loan portfolio, 339 issuers through the CLO portfolio, and across 17 countries and 28 different industries. No individual borrower represented more than 3% of the overall portfolio.

BGLF : Blackstone/GSO delivers 8% return for 2015