ICG Longbow updates on loan portfolio – ICG Longbow is pleased to announce that it has agreed to fund an increase and extension to an existing loan secured by a North London retail park (the “Meadow Loan”). The increase, which takes the aggregate loan to GBP20 million, is on substantially the same terms and conditions as the existing facility, with an increased LTV of 69.4% and the final maturity date extended to January 2020.
Following completion of the increase and extension, the company’s weighted average investment coupon increases to 6.29% (31 October 2017: 6.26%), and LTV increases to 61.3% (31 October 2017: 60.1%).
Two new loans
Intermediate Capital Managers Limited is currently executing two new loans representing approximately GBP33 million of new investment. The first loan relates to a multi-let office property in Bristol, with an expected initial LTV of approximately 67%, rising to a maximum 77% following drawdown of a committed capital expenditure facility. The second relates to a London industrial estate with an expected LTV of approximately 65%. Each loan will enhance the weighted average investment coupon of the portfolio, extend the weighted average portfolio maturity, and will be accretive to shareholders.
Potential fundraising
The proposed investments all remain subject to contract and due diligence, and there can be no assurance that they will complete. However, if progressed, the Board will need to consider a further fundraising under the company’s current approved placing programme. The size of any share issuance will be determined in due course in light of the existing cash resources, any potential loan redemptions in the near term and the development of the broader pipeline, in order to ensure that the company does not experience avoidable cash drag.
LBOW : ICG Longbow updates on loan portfolio