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- Ranger’s board makes some policy changes
Ranger’s board makes some policy changes, manager commits to reinvesting part of fee and update on Princeton. Ranger Direct Lending Fund has been informed by Ranger Alternative Management II LLP (the “Investment Manager”) that it intends to utilise part of its management fee to acquire ordinary shares in the market in order to demonstrate its confidence in the investment strategy.
Ranger Direct Lending is permitted to employ borrowings up to 50% of NAV, in aggregate (calculated at the time of draw down under any facility that the company has entered into). To date, the company’s wholly owned subsidiary, Ranger Direct Lending ZDP plc, has issued 53 million zero dividend preference shares raising gross proceeds of GBP53,805,000, the entirety of which have been loaned to the company. The company has not incurred any other borrowings. Accordingly, current borrowings as a percentage of NAV are 29.3%.
The Board has today instructed the Investment Manager not to exercise its borrowing powers as set out in the borrowing policy to incur any senior borrowings through the provision of credit facilities by financial institutions over the next twelve months, so as not to incur any debt that has preference over the existing zero dividend preference shares.
The Company’s current investment restrictions prevent the company from, inter alia, investing:
The Board has resolved, having regard to the company’s current exposure to Princeton and to the performance of the portfolio as a whole, that the Investment Manager should seek to realign the Company’s portfolio with the aim of increasing the diversification of the portfolio as and when existing Debt Instruments mature.
Accordingly, the Company intends to target the following investment thresholds within the investment restrictions set out in the Company’s investment policy, in each case at the time of investment by the Company:
The Board believes that by phasing in such restrictions over a two year period as existing Debt Instruments mature, the company’s portfolio will realign organically and remain consistent with the company’s investment objective and policy.
Finally, with respect to the company’s outstanding redemption request with Princeton, the company has not yet reached agreement with Princeton with respect to a redemption plan. The company will continue to seek resolution and reserves all rights and courses of action available to it in connection with its investment in Princeton.
RDL : Ranger’s board makes some policy changes
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