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QuotedData’s morning briefing 10 January 2022

BioPharma Credit leads new $315m loan to Sebela

In QuotedData’s morning briefing 10 January 2022:

  • Following its decision to terminate its investment management arrangement with KKV Investment Management, Secured Income Fund (SSIF) is now a self managed AIFM. The company has entered into a consultancy agreement to secure the services of one of the individuals previously employed by KKVIM and who has the greatest knowledge of its assets. In addition, Brett Miller, a director of the company, will continue to be directly involved in the managed wind down of the portfolio.
  • Meanwhile, SLF Realisation Fund (SLFR) has also terminated its investment management agreement with KKVIM while Sanne Fund Management continues to act as its AIFM and will have responsibility for the management of the portfolio. The company has entered into consultancy agreements to secure the services of the four investment professionals with the greatest knowledge of the SLFR’s assets. In addition, an employee providing operational support has transferred from KKVIM to SLFR while Brett Miller, a director of the company, continues to oversee the realisation program and will continue to be directly involved in the managed wind down of the portfolio.
  • Taylor Maritime Investments Limited (TMI) has completed the sale of one of the two vessels committed for sale as announced on 13 December 2021.  The vessel is a Chinese built, Handysize vessel (38k dwt) which comprised part of the IPO seed portfolio. The sale of the second vessel is expected to complete within the first quarter of 2022. TMI also announces the recent delivery of two geared bulk carriers to its trading fleet. One vessel is a Supramax seed asset and the second is a Handysize vessel committed for purchase in August 2021, both of which are fixed on short-term period charters of less than 6 months at average annualized unlevered gross cash yields of over 20% based on September 2021 fair market values. Edward Buttery, Chief Executive Officer, commented: “In the short-term, we are pleased to have locked in such attractive yields for these newly delivered vessels.  However, we expect the market to firm after Chinese New Year and will consider longer-term charters at that point as part of the strategic balancing between pricing and contract longevity.”
  • BioPharma Credit (BPCR) has entered into a definitive senior secured loan agreement with biopharmaceutical company Coherus, where it will invest up to $150m while BioPharma-V will invest up to an additional $150m. Under the terms of the transaction, BPCR will invest $50m in the first tranche, $50m by 1 April 2022 and up to an additional $50m by 17 March 2023. The loan will mature in January 2027 and will bear interest at 3-month LIBOR plus 8.25% per annum subject to a 1% floor along with a one-time additional consideration of 2% of the total loan amount payable upon funding of the first tranche. Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, BPCR’s investment adviser, said: “This non-dilutive capital will support the launch of several new products as Coherus enters a period of rapid topline growth and diversification of its commercial product portfolio, launching as many as five new products over the next 18 months.”
  • RTW Venture Fund (RTW) portfolio company CinCor Pharma has completed a $193.6m initial public offering and admission to trade on Nasdaq Global Market. The clinical-stage biopharmaceutical company developing next-generation treatments for cardio-renal diseases offered around 12.1 million shares at $16 per share. On the first day of trading, CinCor’s share price remained flat to close at $16 per share. Roderick Wong, MD, Managing Partner and Chief Investment Officer at the Investment Manager, said: “We are excited about CinCor’s successful IPO and look forward to supporting the company in its efforts to develop next-generation treatments for hypertension, a condition that affects a significant patient population with limited innovative treatment options.”
  • Digital 9 Infrastructure (DGI9) has agreed to invest a further $93m in Verne Global, a 100% renewable energy powered data centre platform in Iceland which it acquired in September, over the next 12 months to fund the expansion of capacity by a further 20.7 MW. This investment includes anticipated site expansion opportunities identified at the time of the acquisition of Verne Global and accelerated to meet higher than expected customer demand. The expansion includes the completion of a new 8.2MW data hall and a further 12.5MW of repurposed capacity for additional enterprise customer demand. Commenting on the Verne Global investment, Thor Johnsen, Head of Digital Infrastructure at Triple Point, said: “Verne Global’s data centre assets represent some of the cleanest, lowest carbon footprint data centres, globally. This follow-on investment to fund the expansion of the Verne facility, driven by capacity demand from both new and existing customers, will enable these customers to shift further toward their decarbonisation goals while addressing their growing digital needs.”
  • Greencoat UK Wind (UKW) has confirmed that the commissioning of Windy Rig and Glen Kyllachy wind farms and their subsequent acquisitions have been completed. Windy Rig is a 43.2MW subsidy free project located near Castle Douglas in Dumfries & Galloway and comprises 12 Vestas V112 3.6MW turbines while Glen Kyllachy is a 48.5MW subsidy free project located in the Highlands, 11 miles south of Inverness and comprises 20 Nordex N90 2.5MW turbines. These additions increases UKW’s net generating capacity to 1,422MW and the number of subsidy free assets in UKW’s portfolio to three from a total of 43 operating wind farms. The acquisitions were first announced in October 2019 and December 2019 respectively and both projects have been funded through reinvestment of excess cashflow and proceeds from the equity raise in November 2021. Additionally, UKW has entered into an agreement with AXA to provide an 8-year £200m debt facility which will be used to repay the revolving credit facility. This will enable UKW to continue to capitalise on the strong pipeline of opportunities in the UK wind farm market, both onshore and offshore.
  • LXI REIT (LXI) has increased its target annual dividend to 6.3 pence per share for the 12-month period commencing 1 April 2022. It said the new annual dividend target assumes that future rent collection is not materially lower than that achieved so far throughout the pandemic and is expected to be paid to shareholders in four equal quarterly instalments of 1.575p. The company expects to receive 100% of the rent due for the first quarter of 2022, which would represent 100% rent collection for the 12 months ending 31 March 2022. The group’s portfolio at 31 December 2021 was valued at £1.33bn, a 3.3% like-for-like increase in the quarter. On the basis of the updated property valuation, the group’s estimated unaudited net asset value per share as at 31 December 2021, is around 139.5 pence, reflecting growth of around 4.1% over the three-month period.
  • Schroder European Real Estate Investment Trust (SERE) has reported a 2.2% increase in the valuation of its property portfolio in the quarter to 31 December 2021 to €207.1m. The group also said it had collected around 96% of rent due for the quarter.

We also have a portfolio update from JLEN Environmental Assets while Jupiter Emerging & Frontier Income plans to amend its redemption facility. Meanwhile, Electra Private Equity will rebrand.

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