REG - Marble Point Ln Fin - Net Asset Value & Publication of Monthly Report

Marble Point Loan FinancingAnnouncement

27/02/2024 07:00

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RNS Number : 5170E  Marble Point Loan Financing Limited  27 February 2024

27 February 2024

 

The net asset value ("NAV") of Marble Point Loan Financing Limited ("MPLF") as
at the close of business on 31 January 2024 is as follows:

 Share class      January 2024 NAV per Ordinary Share ((1))   December 2023 NAV per Ordinary Share ((1))   Monthly Change in NAV per Share ((1))
 Ordinary Shares  USD 0.5408                                  USD 0.5421                                   USD (0.0013)

 

PERFORMANCE

·      MPLF's ordinary share estimated NAV total return was 4.09% in
January, compared to the total return of the Credit Suisse Leveraged Loan
Index ("CSLLI") of 0.78%.

·      Secondary loan prices moved higher to start the new year as
investors looked to deploy rising cash balances and a generally positive
economic outlook boosted risk assets across markets.

·      Quarterly distributions received by MPLF from its portfolio
holdings totaled approximately $10.1 million in Q1 compared to $11.2 million
in Q4. Most reinvesting CLOs saw distributions remain in line with October
figures while post-reinvestment period deals' distributions declined as the
financing amortized.   Three post-reinvestment period deals also experienced
cash flow diversion due to failing coverage tests which adversely impacted
headline distributions, impacting less than 10% of total distributions.
MPLF's portfolio distributions continue to exceed and support dividend and
liquidating share class distributions.

·      No constituents of the Morningstar/LSTA Index defaulted in
January, and MPLF experienced no defaults in its underlying portfolios. The
Index's lagging 12-month default rate by notional amount was 1.97% at January
month end.

 

MARKET

·      The CSLLI delivered a 0.78% return in January as loan prices
continued to grind higher amidst a positive economic backdrop and strong CLO
demand. Headline primary loan issuance rebounded meaningfully in January,
however a significant portion related to refinancing activity without much net
new supply. The average indicative bid price of the CSLLI increased to 95.51%
at 31 January from 95.32% at 31 December while the weighted average indicative
bid price of MPLF's underlying loans increased to 96.01% at 31 January from
95.37% at 31 December.

·      January CLO issuance totaled $12.5 billion across 29 new issue
CLOs, which was the strongest January issuance total on record.  CLO
liability levels continued a tightening trend from the end of 2023 and CLO
equity arbitrage improved despite more expensive assets, unlocking issuance.

·      Institutional loan volume totaled $65.5 billion in January
according to Pitchbook/LCD, more than triple the monthly average from 2023.
As previously noted, 2023 primary syndicated loan volumes were the lowest
since 2010 and the size of the Index shrank during the year.  While the
headline January total is more than double any single month of issuance in
2023, over 70% of the issuance came from refinancing transactions as issuers
looked to tighten and extend financing in the receptive market.  Loan
repricing volume, while not captured in issuance figures, also increased
during the month as issuers used this ability to improve their financing
costs.

·      Retail loan funds experienced an inflow of approximately $0.5
billion in January according to J.P. Morgan.  Retail fund flows have
generally tracked broader market sentiment despite expectations of rate cuts
in 2024.

·      Since the end of January the average indicative bid price of the
CSLLI has increased by 0.12% to 95.63% (as at 21 February 2024).

INVESTMENT

·      Subsequent to month end, on 7 February Investcorp priced Harvest
US CLO 2024-1 ("HARUS241") a $400 million CLO, at which time MPLF committed to
invest $19.2 million for a 53.8% interest in the equity tranche of the deal.
The closing of HARUS241 is expected to occur on 19 March 2023.

·      HARUS241 has the following features:

o  A reinvestment period of approximately five years

o  A two year non-call period

o  A 13 year final maturity

o  A Weighted Average Cost of Debt of approximately SOFR+215 basis points

o  An estimated effective yield of 13.0-15.0% as at the pricing date of the
transaction

 

MPLF's January 2024 Monthly Report is available on its
website: www.mplflimited.com (http://www.mplflimited.com/)

 

Enquiries:

Marble Point Loan Financing Limited

Investor Relations

T:  +44 (0) 20 7259 1500

E:  MPLF@wearecareys.com (mailto:MPLF@wearecareys.com)

Website: www.mplflimited.com (http://www.mplflimited.com/)

Corporate Broker:

Stifel Nicolaus Europe Limited

T:  +44 (0) 20 7710 7600

( (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 is reduced by the amount of a dividend to
the extent the ex-dividend date occurs during the period presented.   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))Figures shown for effective yield are estimated, unaudited, subject to
change and based on the analysis of Marble Point Credit Management LLC, the
investment manager of MPLF, as at the Closing Date.  The estimated effective
yield is provided for illustrative purposes only.  The actual effective
yield, as recorded by MPLF or other entity holding the investment may vary
over time.

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 is 100% owned
by Investcorp International Holdings Inc. ("IIHI"), which is part of the
Investcorp Group of companies. The Investcorp Group effectively operates as a
management-controlled group, substantially all whose assets and operations are
owned and controlled by Investcorp S.A., a company domiciled in the Cayman
Islands.   Investcorp Holdings B.S.C. ("Investcorp") a Bahrain based holding
company is the parent company of Investcorp S.A. ("S.A."). Certain of the
Investcorp Group's directors and senior executive officers have the ability to
indirectly control Investcorp S.A.

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 the Use of Indices as Benchmarks. 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.

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.

 

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