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RMDL commits GBP23m across three transactions

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RM Secured Direct Lending (RMDL), an investment trust specialising in providing tailored debt solutions, has deployed all cash available for investment so far during April.

Future Loan commitments are expected to be funded from a variety of sources including any repayments under existing Loans, divestments of existing Loans, additional capital raises and the utilisation of its GBP10m Revolving Credit Facility (RCF).
 
Two loans totalling GBP6.25 million have been prepaid in accordance with the terms of the respective Loan agreements. In addition, the Investment Manager has agreed to sell equity warrants issued to RMDL by one of the Borrowers in connection with its Loan. The combined prepayment penalties and the net proceeds of the warrant sale total circa GBP1.5 million, or 1.3 pence per ordinary share, which will be reflected in the 31 March 2019 Net Asset Value.
 
The proceeds of the Company’s recent fundraise, completed in March, have been deployed across three new transactions. All three transactions, originated and structured by the Investment Manager, are consistent with RMDL’s investment approach, offer robust security packages and yield cash coupons in excess of 8.75 per cent per annum.
 
The RCF offers RMDL flexible capital for maintaining and preserving liquidity and general corporate purposes, including for investment in its substantial pipeline of opportunities. RMDL does not incur any non-utilisation fees in connection with the facility. Repayment of the facility is expected to be funded through repayments and divestments of existing Loans and through further capital raises. 
 
Further details of the three transactions funded by the Company’s recent fundraise, together with RMDL’s wider portfolio, will be detailed in the quarterly factsheet expected to be published on or around the 16 April 2019.
 
Norman Crighton, Chairman of the company, says: “RMDL continues its track record of sourcing strong credit opportunities and actively deploying funds into high quality investments. We remain confident in our Investment Manager’s approach in ensuring the portfolio is well balanced and set to deliver sustainable income and returns for shareholders.”

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