TIDMMPLF
RNS Number : 8270T
Marble Point Loan Financing Limited
23 July 2020
23 July 2020
MPLF announces NAV per share at 30 June 2020
The net asset value ("NAV") of Marble Point Loan Financing
Limited ("MPLF") as at the close of business on 30 June 2020 is as
follows:
Share class June 2020 NAV May 2020 NAV per Monthly Change
per Ordinary Ordinary Share in NAV per
Share (1) (1) Share (1)
Ordinary USD 0.5173 USD 0.4930 USD 0.0243
Shares
-------------- ---------------- ---------------
Performance
-- MPLF's NAV total return was 4.93% in June, outperforming the
monthly total returns for the Credit Suisse Leveraged Loan Index
(CSLLI), ICE BAML High Yield Index and S&P 500 of 1.35%, 0.97%
and 1.99% respectively(2) .
-- MPLF's NAV return benefited from further appreciation in
leveraged loan prices and the resulting positive impact on the NAV
of the Funding Subsidiary in which MPLF is invested, as well as
gains on CLO equity securities which moved up in concert with the
underlying loan market.
-- As at 30 June 2020, the CLOs and Funding Subsidiary held
three issuers out of the eight index constituents that defaulted in
June - Covia Holdings, 24 Hour Fitness Worldwide and Libbey Glass,
with exposures of 0.42%, 0.52% and 0.57% respectively. The lagging
12-month default rate by notional amount for the index increased to
3.23%, its highest level since March 2015.
Market
-- Loan prices continued to rise in June, with the CSLLI
experiencing a 1.35% return, following its 3.80% increase in May,
representing the third consecutive monthly gain after the onset of
the market volatility in March 2020. The average bid price of the
Index moved up to 89.47% at 30 June from 88.56% on 31 May. The
average market price of MPLF's loans increased to 90.51% at 30 June
from 89.97% at 29 May.
-- Strong demand from sustained new CLO issuance digested a
resurgence in new issue loan volume and maintained the technical
support for the ongoing loan price rally. Retail fund outflows
totaled approximately $1.7 billion in June slightly higher than the
$1.5 billion in May as reported by J.P. Morgan. Retail funds now
account for only 8.5% of the leveraged loan market, down from 17%
at the beginning of 2018 according to S&P/LCD.
-- The demand for leveraged loans has continued to be driven
largely by new CLO creation. Twenty new U.S. CLOs aggregating $7.9
billion were priced in June as the loan securitization markets
continued to improve and CLO managers continued to term out
existing warehouse lines as well as price opportunistic new issue
transactions.
-- New institutional loan markets registered $25.6 billion of
total issuance, the highest monthly volume figure since January
2020 and more than double the $9.4 billion in May 2020 according to
S&P/LCD.
-- Since the end of June, the average bid price of the CSLLI has
increased by 1.23% to 90.70% (as at 20 July 2020) as broader
markets continued to rally and new CLO issuance and quarterly loan
amortizations supplied additional purchasing power to secondary
loan markets.
-- Loan and CLO markets have a better tone presently than in
March, due principally to the technical backdrop of increased loan
demand in the absence of new issue and to a lesser extent recent
improving month over month economic data as the United States moved
to reduce restrictions on commerce. Whether the loan market
strength will continue is uncertain as a number of states have
reported significant increases in the incidence of COVID 19
transmissions since restrictions have been relaxed. Consequently,
more recently many states have instituted additional restrictions
and guidelines for public establishments to stem the increase in
infections. It remains to be seen whether the economic recovery is
sustainable or whether a second wave of the virus causes another
shutdown of a portion of the United States economy.
Dividend
-- Subsequent to month end, on 23 July the Board of Directors
announced the reinstatement of quarterly dividend payments and the
declaration of a dividend in the amount of $0.02 per ordinary
share.
-- On 8 April, 2020, the Company announced the temporary
suspension of the declaration of dividends in the wake of the
unprecedented global economic disruption and significant near-term
uncertainties caused by the outbreak of the COVID-19 pandemic. The
Board and the Investment Manager believed that preserving liquidity
was an appropriate and prudent action at the time, given the
uncertainty of cash flows expected to be received in April 2020.
Prior to the temporary suspension of dividends in April, the
Company had paid dividends totaling $0.1554 per share since its
listing in February 2018.
-- As announced in previous MPLF monthly reports, none of the
Marble Point CLOs were required to divert cash available for
distribution in April. Active management of the underlying CLO
portfolios drove the receipt of full cash distributions despite an
accelerating pace of loan downgrades during March and April.
Furthermore, the Investment Manager expects that all of the CLOs in
which the Company has an investment will make equity distributions
in July 2020.
-- The Board and Investment Manager have monitored the
performance of the Company's investments and have carefully
considered appropriate options. The Board and Investment Manager
recognise the importance of dividends to shareholders, including
reinstating a regular dividend plan. At the same time, the Board
recognise the difficulty of predicting the full impact of the
pandemic. Risks of higher than modeled default rates or downgrades
triggering provisions of CLO indentures may impact the magnitude of
near-term cash flows. Accordingly, the Board and Investment Manager
believe reinstating a quarterly dividend of $0.02 is appropriate,
enabling the Company to distribute meaningful cash flow to
shareholders while prudently preserving liquidity for other future
purposes, including new investments.
MPLF's June 2020 Monthly Report is available on its website: www.mplflimited.com
Enquiries:
Marble Point Loan Financing Limited
Investor Relations
T: +44 (0) 20 7259 1500
E: ir@mplflimited.com
Website: www.mplflimited.com
Corporate Broker :
Stifel Nicolaus Europe Limited
T: +44 (0) 20 7710 7600
Financial Public Relations :
Charlie Barker / Catherine Chapman
MHP Communications
T: +44 (0) 20 3128 8100
MarblePoint@mhpc.com
(1) NAV figures are provided for informational purposes only and
are unaudited, estimated by Marble Point Credit Management LLC
("Marble Point"), the investment manager of MPLF, and subject to
adjustment. Marble Point estimates MPLF's NAV on a monthly basis as
at the end of each month. Estimates with respect to a date falling
on a calendar quarter end are subject to revision when the
quarterly NAV is determined. NAV is calculated as the sum of the
value of MPLF's investment portfolio, any cash or cash equivalents
and other assets less liabilities. NAV total return figures shown
are estimated, unaudited and subject to adjustment and reflect the
net total NAV return, inclusive of dividends, for the periods shown
and as from MPLF's admission to the Specialist Fund Segment of the
main market of the London Stock Exchange on 13 February 2018, after
taking into account applicable listing and offering costs and
pre-admission profits and loss. Monthly and cumulative performance
figures are non-annualised and such results reflect the deductions
of applicable management fees and expenses at the underlying
investment levels.
(2) The indices shown have not been selected to represent a
benchmark for MPLF's performance, but rather to allow for
comparison of MPLF's returns to those of known, recognized and/or
similar indices. The Credit Suisse Leveraged Loan Index (CSLLI)
tracks the investable universe of the U.S. leveraged loan market.
The ICE BofAML US High Yield Index (ICE BAML HYI) tracks the
performance of USD-denominated below investment grade corporate
bonds publically issued in the U.S. domestic market. The Standard
& Poor's 500 Index (S&P 500) tracks the performance of U.S.
public equity markets and is based on the market capitalization of
500 large companies having common stock listed on NYSE or NASDAQ.
The performance of any index is not an exact representation of any
particular investment as you cannot invest directly in an
index.
Past performance is not indicative or a guarantee of future
performance.
This release contains inside information.
About Marble Point Loan Financing
Marble Point Loan Financing Ltd. (LSE Ticker: MPLF LN (USD);
MPLS LN (GBX)) is a Guernsey-domiciled closed-ended investment
company. MPLF's investment objective is to generate stable current
income and grow net asset value by earning a return on equity in
excess of the amount distributed as dividends.
MPLF is invested in a diversified portfolio of US dollar
denominated, broadly syndicated floating rate senior secured
corporate loans owned via collateralised loan obligations ("CLOs")
and related vehicles managed by Marble Point Credit Management
LLC.
About Marble Point Credit Management LLC
Marble Point Credit Management LLC ("Marble Point") is a
specialist asset manager focused exclusively on leveraged loans.
Marble Point was founded by Thomas Shandell in partnership with
Eagle Point Credit Management, a leading investor in CLO
securities. As at 30 June, 2020, Marble Point manages approximately
$5.3 billion of assets across CLOs and other managed accounts.
IMPORTANT INFORMATION
Marble Point Loan Financing Limited (the "Company") is a
closed-ended investment company incorporated in Guernsey with its
ordinary shares ("Shares") admitted to trading on the Specialist
Fund Segment of the Main Market of the London Stock Exchange
(ticker: MPLF.LN). The Company is invested in a diversified
portfolio of US dollar denominated, broadly syndicated floating
rate senior secured corporate loans via CLOs, loan accumulation
facilities and other vehicles managed by Marble Point Credit
Management LLC ("Marble Point") or its affiliates. Marble Point is
an investment adviser registered with the U.S. Securities and
Exchange Commission.
This document is provided for informational purposes only and
does not constitute an offer to sell any Shares, notes or other
securities (collectively, "Securities") issued by the Company or a
solicitation of an offer to purchase any such Securities in the
United States, Australia, Canada, the Republic of South Africa,
Japan or any other jurisdiction. This document may not be relied
upon, and should not be used, for the purpose of making any
investment decision. This document and the information and views
included herein do not constitute investment advice or a
recommendation or an offer to enter into any transaction with the
Company or any of its affiliates. Any recipient of this document
should make such investigations as it deems necessary to arrive at
an independent evaluation of any investment and should consult its
own legal counsel and financial, actuarial, accounting, regulatory
and tax advisers to evaluate any such investment. This document has
been issued by the Company and is the sole responsibility of the
Company.
The Securities have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, or with any securities
regulatory authority of any state or other jurisdiction of the
United States and may not be offered or sold in the United States
to, or for the account or benefit of, U.S. persons unless they are
registered under applicable law or exempt from registration. The
Company has not been and will not be registered under the U.S.
Investment Company Act of 1940, and investors will not be entitled
to the benefits of such Act.
The information shown herein is estimated, unaudited, for
background purposes only, representative as of the dates specified
herein, subject to adjustment and not purported to be full or
complete. Nothing herein shall be relied upon as a representation
as to the current or future performance or portfolio holdings of
the Company or any strategy or investment vehicle. Certain
information presented herein has been obtained from third party
sources and is believed to be reliable. However, neither the
Company nor Marble Point represents that the information contained
in this document (including third party information) has been
independently verified or is accurate or complete, and it should
not be relied upon as such. Index information, if any, has been
provided for illustration purposes only. Any such information does
not reflect the effect of transaction costs, management fees or
other costs which would reduce returns. An investor cannot invest
directly in an index.
There is no guarantee that any of the goals, targets or
objectives described in this document will be achieved. The
investment strategies of the Company may not be suitable for all
investors and are not intended to constitute a complete investment
program. Neither Marble Point nor the Company makes any
representation or warranty (express or implied) with respect to the
information contained herein (including, without limitation,
information obtained from third parties) and each of them expressly
disclaims any and all liability based on or relating to the
information contained in, or errors or omissions from, these
materials; or based on or relating to the use of these materials;
or any other written or oral communications transmitted to the
recipient or any of its affiliates or representatives in the course
of its evaluation of the information herein.
Any of the views or opinions expressed herein are current views
and opinions only and may be subject to change. Statements made
herein are as of the date of this document and should not be relied
upon as of any subsequent date. All information is current as of
the date of this document and is subject to change without
notice.
Past performance is not a reliable indicator of current of
future results. The value of investments may go down as well as up
and investors may not get back any of the amount invested. The
value of investments designated in another currency may rise and
fall due to exchange rate fluctuations in respect of the relevant
currencies. Adverse movements in currency exchange rates can result
in a decrease in return and a loss of capital.
A Note on Forward Looking Statements. This document includes
forward-looking statements. Forward-looking statements include all
matters that are not historical facts. Actual results may differ
materially from any results projected in the forward-looking
statements and are subject to risks and uncertainties. Such
statements are based on current expectations, involve known and
unknown risks, a reliance on third parties for information, and
other factors that may cause actual results to differ materially
from the anticipated results expressed or implied by such
forward-looking statements. The Company and Marble Point caution
readers not to place undue reliance on such statements. Neither the
Company nor Marble Point undertakes, and each specifically
disclaims, any obligation or responsibility, to update any
forward-looking statements to reflect occurrences, developments,
unanticipated events or circumstances after the date of such
statement. Actual results may differ materially from the Company's
and/or Marble Point's expectations and estimates.
None of the Company, Marble Point or any of their respective
parent or subsidiary undertakings, or the subsidiary undertaking of
any such parent undertakings, or any of such person's respective
partners, shareholders, directors, members, officers, affiliates,
agents, advisors or representatives shall have any liability
whatsoever (in negligence or otherwise) for any loss howsoever
arising from any information or opinions presented or contained in
this document nor shall they accept any responsibility whatsoever
for, or make any warranty, express or implied, as to the truth,
fullness, accuracy or completeness of the information in this
document (or whether any information has been omitted from the
document) or any other information relating to the Company, Marble
Point or their respective subsidiaries or associated companies, in
any form whatsoever, howsoever transmitted or made available or for
any loss howsoever arising from any use of this document or its
contents or otherwise arising in connection therewith. This shall
not affect any liability any such person may have which may not be
excluded under applicable law or regulation.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
NAVPPUWWMUPUPWP
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July 23, 2020 02:01 ET (06:01 GMT)
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