RM Secured Direct Lending on track for March C share conversion – RM Secured Direct Lending has published results covering the period from launch to the end of December 2017. RM Secured Direct Lending plc listed on the premium segment of the main market of the London Stock Exchange on 15 December 2016, issuing 50,300,000 Ordinary Shares at a price of £1 per share. In May 2017, it issued a further 7,000,000 Ordinary Shares at 101.25 pence per share. In addition, it issued 30,000,000 C Shares at a price of £1 per share in October 2017. The C Shares are expected to be converted to Ordinary Shares on 19 March 2018.
Dividends totalling 2.2 pence per Ordinary Share were paid in the Period and this combined with modest share price appreciation represents a 3.7% total return to shareholders over the first full financial period. As at 31 December 2017, the adjusted NAV per Ordinary Share was 98.6 pence and the share price was 101.5 pence per share, representing a premium of 3.0% to NAV. As at 31 December 2017, the adjusted NAV per C Share was 97.8 pence and the share price was 102.0 pence per share, representing a premium of 4.3% to NAV. A further 2p of dividend has been declared in respect of the first financial year. The 4.2p total dividend is above the stated IPO dividend target of 4 pence per share, for the current year the target is 6.5% as outlined in the IPO prospectus.
As at the period end the Ordinary Share portfolio was almost fully deployed with an average yield on investments of 8.23% and 70% of the C share capital had been deployed or committed to funding above the target 8% yield. This is consistent with a target gross yield above 8% across the portfolio and given, the pipeline of opportunities, the Company announced on 15 February 2018 that the Ordinary and C Shares will merge during March. The Company focuses on private debt and at the period end, 77% and 86% of the Ordinary and C Share portfolios respectively are in private debt instruments.
RMDL : RM Secured Direct Lending on track for March C share conversion