GCP Asset Backed Income (GABI), which invests in asset backed loans, has this morning announced that it has entered into an agreement with Royal Bank of Scotland International in respect of an increase to the revolving credit facility for an amount of £50m, split as £40m maturing in August 2020 (plus a 12-month extension option, with lender approval) charged at a rate of LIBOR plus 2.10% and £10m maturing in January 2020 charged at a reduced rate of LIBOR plus 1.70%.
The company’s manager, Gravis Capital Management, has identified an attractive pipeline of investment opportunities in the near term across a range of sectors and which are in various stages of due diligence. In order to provide additional capital in the immediate term to access some of these opportunities, the company has extended its revolving credit facility in respect of the £10m tranche, such that this will now also mature in August 2020. The other terms of the revolving credit facility remain unchanged.
As at the date of this announcement, £10.5m has been drawn (in aggregate) under the company’s revolving credit facility.
The company seeks to meet its investment objective by making investments in a diversified portfolio of predominantly UK based asset backed loans which have contracted, predictable medium to long term cash flows and/or physical assets.
GABI: GCP Asset Backed Income credit facility increased