In QuotedData’s morning briefing 13 April 2023:
- Round Hill Music (RHM) had FTI Consulting produce another independent valuation report on its portfolio. The FTI Report supports the valuation as at 31 December 2022, prepared by the company’s original independent valuer, Citrin Cooperman. FTI comes up with two weighted average discount rates: one assumes the use of bank debt in the finnacing structure, and this comes up with a discount rate of 9.25%, wider than Citric Cooperman’s 8.5%; the other is based on finance through an asset-backed securitisation, and this comes up with a discount rate of 8.25%. Another component of the calculation is the forecast cash flows from the business. FTI assumes that these grow by 7%, 6% and 5% over the next three years – faster than Citric Cooperman’s 5% assumed growth rate for each year. The net of all of this is an FTI valuation within 3% of Citric Cooperman’s. Round Hill is sticking by its $1.28 per share economic NAV and 93 cent IFRS NAV.
- Literacy Capital (BOOK) has made an investment into Cadro Technologies, a technology-enabled wealth and investment management company. The terms have not been disclosed.
- ARA Asset Management Limited, has acquired a majority shareholding stake in London & Scottish Property Investment Management, manager of Regional REIT (RGL), with Stephen Inglis retaining a significant minority interest – see Stephen on our show tomorrow.
- LXI REIT has a new £565m secured, interest-only debt facility with a syndicate of banks – a £200m five-year revolving credit facility, a £115m five-year term loan and a £250m three-year term loan. The blended margin on the facility is 2.23% per annum over SONIA. The company has purchased interest rate caps representing £400m of notional to cap the SONIA cost of the facility at a rate of 2.0%, resulting in an all-in rate of 4.23% per annum for the first 3-years of the facility. There a new annual dividend target of 6.6p for the current financial year, too; up 4.8% on the previous year.
- Home REIT has extended the deadline for talks with Bluestar about a possible offer for the company.