KKV Secured Loan issue valuation update – following an reappraisal of the whole portfolio, assisted by the review of certain assets undertaken by KPMG, the net asset value as at 30 June 2020 is currently expected to be £128.8m (36.2p per share) for the ordinary shares and £94.7m (68.2p per share) on the C shares. However, these revised NAVs are still subject to audit and therefore it should be expected that some adjustments will be made to the NAVs once they have been reviewed by the auditors.
The movements in the two portfolios are as follows:
Ordinary shares, the total provision amount increased from £116.7m to £214.1m:
- stage 1, there were 14 credit lines in stage 1 representing £97.8m of assets with a provision for fair value adjustment and impairments of £0.1m. The number of credit lines has reduced to 12 representing £65.4m of assets with the provision increased to £2.2m.
- stage 2, there were 7 credit lines in stage 2 representing £21.0m of assets with a provision for fair value adjustment and impairments of £3.0m. The number of credit lines has reduced to 1 representing £1.2m of assets with a provision of £0.2m.
- stage 3, there were 14 credit lines in stage 3 representing £195.8m of assets with a provision for fair value adjustment and impairments of £101.3m. The number of credit lines has increased to 22 representing £254.4m of assets with the provision increased to £192.5m.
- equity and operating leases, there were 5 lines representing an original balance of £20.1m held at a fair value of £7.8m, reflecting impairments of £12.3m. The same assets are now held at a fair value of £1.0m, reflecting an increase in the impairments to £19.1m.
- free cash was £3.0m.
C shares, the total provision amount increased from £9.3m to £43.3m:
- stage 1, there were 14 credit lines in stage 1 representing £82.7m of assets with a provision for fair value adjustment and impairments of £0.0m. The number of credit lines has reduced to 11 representing £53.8m of assets with the provision increased to £1.4m.
- stage 2, there were 3 credit lines in stage 2 representing £22.6m of assets with a provision for fair value adjustment and impairments of £3.2m. The number of credit lines have reduced to 2 representing £9.3m of assets and the provision decreased to £0.7m.
- stage 3, there were 4 credit lines in stage 3 representing £23.8m of assets with a provision for fair value adjustment and impairments of £6.1m. The number of credit lines has increased to 8 representing £66.3m of assets and provision increased to £41.3m.
- free cash was 6.0m.
KKVL : KKV Secured Loan issue valuation update