In QuotedData’s morning briefing 26 March 2020:
As the excitement of yesterday’s $2trn stimulus gave way to the reality of sharply rising cases in the US and stories of a potential uptick in cases in Japan (where the virus seemed to be under control) markets are falling once again.
- NB Private Equity has increased its borrowing facility by $50m to $250m. No reason was given for the move.
- BMO Real Estate said that, over the six months ended 31 December 2019, it made a return on NAV of 0.3% as a fall in the capital value of the property portfolio was offset by income earned in the period. On covid-19, the board said “early predictions of an immediate bounce back by the middle of the year may well prove short-sighted. Certainly, there is potential for a change in consumption patterns and working practices that could have lasting consequences for consumer behaviour.”
- Princess Private Equity’s manager Partners Group, says that it “remains confident that the company has access to sufficient liquid resources to meet all liabilities as they fall due. As of 29 February 2019, the company held cash of EUR 12.3 million having drawn EUR 48.5 million of its EUR 50 million committed credit facility which it maintains to manage short-term liquidity requirements. As part of its ongoing review of liquidity management, the company had initiated a renewal of the credit facility in January 2020 and on 18 March 2020 announced an increase in the size of the facility from EUR 50 million to EUR 80 million, and a term extension to December 2024. Liquidity will be significantly enhanced by the EUR 88.6 million of proceeds from the realisation of Princess’ stake in Action which is expected to be received by the end of May.”
- Aberdeen Standard Asia Focus agreed with RBS that the minimum net asset value covenant on its debt is reduced from £300m to £250m – so the trust can shrink further without RBS taking action.
- Witan is redeeming its 6.125% 2025 bonds early. There will be a hit to NAV of about £6m or 0.4% as the bond holders are compensated for the early repayment (the actual hit is £20m on top of the £65m face value of the bonds but £14m of this had already been provided for). However, Witan reckons it can save £3m a year by replacing this borrowing with short-term finance. This demonstrates the impact of taking out expensive long-term debt. Witan will be hoping that interest rates don’t rise in the aftermath of covid-19. We aren’t sure what will happen on this front.
- We also have trading updates from a wide range of investment companies and REITs including Better Capital (which plans to delist), JLEN Environmental, ICG Enterprise, Big Yellow, Impact Healthcare REIT, Intu Properties, International Public Partnerships and British Land .