RM Secured Direct Lending (RMDL), which listed on the London Stock Exchange on 15 December 2016, has announced the results of its recent placing. The company says that it has received commitments from investors subscribing for a total of £7.1 million (before costs and expenses) via the Placing and that, accordingly, an aggregate of 7,000,000 new ordinary shares have been issued at the Placing Price of 101.25 pence each. The company says that it expects that the new shares will admitted to trading on 24 May 2017 and that, following admission, it will have 57,300,000 ordinary shares in issue.
RMDL, an investment trust specialising in secured debt instruments. It aims to generate attractive and regular dividends through investment in direct loans to corporates mainly based in the UK. These loans are made through RM Capital’s Direct Lending platform. RMDL’s manager says that RMDL seeks to generate attractive risk adjusted returns with significant investments in assets which also protect against any inflation over the medium term. The manager says that the asset backed nature of the investments also means that there is downside protection from adverse events and that all investments are secured with most being on a senior secured basis.
As at 30 April 2017, the company’s portfolio comprised 17 loans, with £54.8m comitted, and average yield of 7.65% and an average life of 3.63 years. 88% of the portfolio was invested in Senior secured loans whilst 12% was invested in Junior secured loans. 76% of the portfolio was invested in fixed rate loans, 18% in floating rate loans and 6% were inflation linked. In terms of yield characteristics, 35% of the portfolio was invested in loans yielding less than 7.5%, 47% was invested in loans yielding between 7.5% and 9.5% whilst 18% was invested in loans yielding over 9.5%.
RM Secured Direct Lending raises £7.1m through its placing programme