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QuotedData’s morning briefing 13 September 2021

In QuotedData’s morning briefing 13 September 2021:

  • Montanaro European Smaller Companies (MTE) is due to undertake a share split, whereby a sub-division of each ordinary share of 50 pence each will be split into 10 new ordinary shares of 5 pence each. The new ordinary shares are to be admitted to trading on the premium segment of the main market of the London Stock Exchange at 8am on 14 September 2021. Subsequent to the share split, MTE has made an application to increase its block listing facility – that is for 11,533,260 ordinary shares of 5 pence each to be admitted to the official list. The shares may be issued under the block listing from time to time to satisfy investor demand and to manage the premium to net asset value at which the shares trade. When issued, the shares will rank pari passu in all respects with the existing issued shares of the company.

  • Third Point Investors (TPOG) has posted its interim report for the six months to 30 June 2021, during which time its NAV rose by 16.5%, outpacing both the S&P 500 and the MSCI World Index, which climbed 15.2% and 13.3%, respectively. TPOG’s share price increased by 27.4%, capturing both the rise in NAV and a narrowing of the discount over the period, from 19.0% to 11.5%. The board wishes the discount to narrow further and will keep under review the parameters on which the discount control programme operates. Steve Bates said: “Given the good progress that has already been made in narrowing the discount and the outstanding level of returns generated in both the NAV and share price, we are optimistic that the Company can meet and exceed investors’ expectations in the future. Looking ahead at the investment prospects, it is notable that the degree of focus which followed Daniel Loeb assuming the role as lead manager for the investment strategy has benefited shareholders. The Manager continues to look for, and find, opportunities across a range of asset classes and we are confident that its many strategies will allow us to generate superior risk-adjusted returns going forward.”

  • VH Global Sustainable Energy Opportunities (GSEO) has published its results for the period from incorporation on 30 October 2020 to 30 June 2021. Approximately 92% of the net proceeds (£242.6m) raised at IPO have been committed to date. Since the company’s IPO in February 2021 to the end of June, its NAV is down 1.3% while its share price is down 0.3%. GSEO is targeting an initial annualised dividend yield of a minimum of 1p by reference to the IPO price of £, rising to a target annualised dividend yield of 5% to the end of 2022. Thereafter, the company intends to adopt a progressive dividend policy. Chairman, Bernard Bulkin, said: “The global energy infrastructure is huge, built over more than a century. Transforming it from its fossil fuel core requires many things, including behaviour change and efficiency gains, but certainly at the centre are large capital projects aligned to the UN Sustainable Development Goals. These projects span a range of commercially mature technologies, as well as diverse geographies. Improving access to clean and reliable energy is fundamental to the new model of global development.”
  • BioPharma Credit (BPCR), has entered into an amendment to its credit facility with JPMorgan Chase Bank including a reduction in the committed Revolving Credit Facility from $200m to $50m together with changes in the accordion feature allowing for an increase in the RCF to US$100m and up to US$200m in term loans. Meanwhile, the maturity date has been extended to 22 June 2024 and there has been a reduction in the margin payable under the RCF from 4% to 2.75%. BPCR may incur indebtedness of up to a maximum of 50% of its net asset value, calculated at the time of drawdown, for investment and for working capital purposes. Pharmakon Advisors, the manager, has agreed not to incur aggregate borrowings greater than 25% of the company’s net asset value, calculated at the time of drawdown, without prior board approval. Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, said: “The amendment to the Credit Facility will allow the Company to significantly reduce its financing expense while retaining the flexibility to access additional capital if and when necessary.  We wish to thank JPMorgan for their continued partnership”.
  • GCP Asset Backed Income (GABI) has shared an update on its co-living group loan. As announced on 15 July 2021,  what it terms “the Co-living Group” had appointed a large investment bank to run a sales process to better support its long-term viability which led to GABI’s valuation of its loan to the Co-living Group being reduced for the purpose of determining its NAV as at 30 June 2021. The reduction reflected an increase in the discount rate applied to the loan which was determined on the basis of the fair value of an offer received in the sales process as adjusted to reflect transaction risk. The offer was reaffirmed following second round bids in late July (the first being in June). The status of the loan and the current bid levels have subsequently deteriorated which leads the investment manager to estimate a consequent reduction in the NAV of 3.69 pence per share, to 99.02 pence per share. GABI participates in the loan to the Co-living Group with a number of other lenders, who, combined, will take prudent steps to maximise the likely recovery from its loan to the Co-living Group. The syndicate is expecting further developments shortly and, when these occur, GABI will announce relevant details to shareholders. The manager feels that, despite this write-down, the target dividend for the current financial year will be maintained and covered by the cashflows generated by the company’s portfolio.

We also have the launch of a placing from Digital 9 Infrastructure.

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