RM Secured Direct Lending exploring capital raise – The direct lending sector company, RM Secured Direct Lending (RMDL), is exploring options to raise funds through a potential issue of new ordinary shares at a premium to NAV.
RMDL wants to raise capital to go after what it sees as a strong pipeline of opportunities. The company has utilised its revolving credit facility so a potential equity raise would augment this.
About RMDL
RMDL aims to generate attractive and regular dividends through investment in secured debt instruments of UK SMEs and mid-market corporates and/or individuals including any loan, promissory notes, lease, bond, or preference share sourced or originated by the manager with a degree of inflation protection through index-linked returns where appropriate.
Loans will generally be, but not limited to, senior, subordinated, unitranche and mezzanine debt instruments, documented as loans, notes, leases, bonds or convertible bonds. Such loans shall typically have a life of 2-10 years. In certain limited cases Loans in which the company invests may have equity instruments attached, ordinarily any such equity interests would come in the form of warrants or options attached to a Loan. Typically, the loans will have coupons which may be fixed, index-linked or LIBOR linked. For the purposes of this investment policy, UK SMEs include entities incorporated outside of the UK provided their assets and/or principal operations are within the UK.
Loans in which the company invests are predominantly secured against assets such as real estate or plant and machinery and/or income streams such as account receivables. The company will make loans to borrowers in a range of sectors within certain exposure limits which will vary from time to time, according to market conditions.
RMDL: RM Secured Direct Lending exploring capital raise