New Investments and Portfolio Update

RNS Number : 5702G

ICG-Longbow Snr Sec UK Prop DebtInv

02 March 2018

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR IN, INTO OR FROM, THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

2 March 2018

ICG-Longbow Senior Secured UK Property Debt Investments Limited

(the "Company" or "Group")

New Investments
and
portfolio update

The Company is pleased to announce that it has completed a new £16.2 million loan facility to an affiliate of Affinity Global Real Estate (the "Affinity Loan"). The loan, which is secured by a first mortgage over a multi-let office property in Bristol, comprises an initial advance of £14.2 million, at an LTV ratio of 67.3%, together with a committed £2.0 million capital expenditure facility. The loan matures in May 2022.

The Company also announces an additional circa £0.9 million commitment to the borrower of the Northlands loan to support the ongoing business plan.  The total loan now equates to £8.5 million and carries an LTV ratio of 53.5%.  The Company has also extended the coupon protection period of the combined total loan.

These advances were funded through the immediate reinvestment of proceeds from the redemption of the Company's IRAF loan, together with accrued interest and exit fees, following a sale of the portfolio of properties securing the loan. This reinvestment minimises cash drag and is accretive to shareholders.

Following these portfolio changes, the Company's weighted average investment coupon increases to 6.31% (31 October 2017: 6.26%) and LTV increases to 64.4% (31 October 2017: 60.1%).  The weighted average unexpired term of the portfolio loans as at the date of this announcement is 1.71 years (31 October 2017: 1.27 years), with approximately £45.2 million of the Company's investments having been originated or extended since the Company's change of investment policy in 2017.

In addition to the above and as detailed in its trading update dated 26 January 2018, the Company is documenting a further new loan totalling £17.5 million, and in anticipation of concluding this investment and recognising the strength of the Investment Adviser's wider pipeline the Board expects to announce details of a further fundraising under the Company's approved placing programme in the near term.

The size of any share issuance will be determined in due course in light of existing cash resources, any potential loan redemptions in the near term and the development of the broader pipeline, in order to ensure that the Company does not experience avoidable cash drag.

For further information please contact:

Estera International Fund Managers (Guernsey) Limited:
James Christie	[phone]
Cenkos Securities:
Will Rogers Alex Collins Tom Scrivens Oliver Packard Andrew Worne	[phone] [phone] [phone] [phone] [phone]
Maitland Consultancy Limited:
Rebecca Mitchell	[phone]
ICG-Longbow Martin Wheeler David Mortimer	[phone] [phone]

ICG Longbow LEI: 2138008BKBH3OP2CA764

The content of this announcement has been prepared by, and is the sole responsibility of, ICG-Longbow Senior Secured UK Property Debt Investments Limited.

Neither the content of the Company's website nor any website accessible by hyperlinks to the Company's website is incorporated in, or forms part of, this announcement. The distribution of this announcement into jurisdictions other than the United Kingdom may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws or regulations of any such jurisdiction.

In particular, this announcement should not be distributed, forwarded to or transmitted, directly or indirectly, in whole or in part, in into or from the United States, Australia, Canada, Japan or the Republic of South Africa or any other jurisdiction where to do so may constitute a violation of the securities laws or regulations of any such jurisdiction.

Certain statements made in this announcement are forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Such statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements.

The information contained in this announcement is subject to change without notice and the Company does not take any responsibility or obligation nor does it intend to revise or update publicly this announcement to reflect events or circumstances after the date of this announcement (except to the extent required by the FCA, the London Stock Exchange or by applicable law, the Listing Rules, the EU Market Abuse Regulation No. 596/2014 or the Disclosure Guidance and Transparency Rules).

This announcement does not constitute a prospectus relating to the Company and does not constitute, or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor.

None of the Investment Adviser or Cenkos Securities plc ("Cenkos"), or any of their respective affiliates, accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to this announcement, including the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or for any loss howsoever arising from any use of the announcement or its contents aside from the responsibilities and liabilities, if any, which may be imposed by FSMA, as amended or the regulatory regime established thereunder or any other applicable regulatory regime. The Investment Adviser and Cenkos and their respective affiliates, accordingly disclaim all and any liability whether arising in tort, contract or otherwise which they might otherwise have in respect of this announcement or its contents or otherwise arising in connection therewith.

 

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