ICG Longbow Senior Secured has redeployed its uninvested cash through the completion of a new GBP16.0 million loan to clients of BMO Real Estate Partners on 31 January 2017.
The loan has a maturity date of April 2019 and is fully compliant with existing investment parameters as set out in the original Prospectus. The LTV of the loan is approximately 55.5%, and it represents 14.6% of the total loan portfolio as at the date of completion.
The weighted average LTV reduces to 57.5% (31 October 2016: 57.8%) and weighted average ICR improves to 235% (31 October 2016: 206%).
The loan is secured by first charges against a portfolio of 17 properties located across the UK, principally in the high street retail and industrial sectors. The portfolio provides a diversified income stream from lettings to 50 tenants.
This transaction reinvests substantially all of the cash held by the fund following the repayment of the Raees International loan. The combined effect of the loan repayments and this reinvestment is accretive to shareholders, and the company remains on target to maintain the current dividend rate of 6.0 pence per share per annum.
LBOW : Longbow deploys uninvested cash