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

S P Capital FinancingAnnouncement

23/12/2021 08:00

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RNS Number : 5561W  Marble Point Loan Financing Limited  23 December 2021

23 December 2021

 

The net asset value ("NAV") of Marble Point Loan Financing Limited ("MPLF") as
at the close of business on 30 November 2021 is as follows:

 Share class      November 2021 NAV per Ordinary Share ((1))   October 2021 NAV per Ordinary Share ((1))   Monthly Change in NAV per Share ((1))
 Ordinary Shares  USD 0.7579                                   USD 0.7778                                  USD (0.0199)

 

Performance

·      MPLF's estimated NAV total return was (2.85%) in November,
compared to the total return of the Credit Suisse Leveraged Loan Index of
(0.15%).

·      Secondary loan prices declined in November, as omicron variant
concerns weighed on risk assets.  The valuations of CLO equity securities
held by MPLF declined in concert with these market movements.

·      MPLF has continued to outperform relevant benchmarks over the
past 18 months, delivering a cumulative NAV return of 131.8% since March 2020
compared to 24.0%, 26.4% and 81.4%, respectively, for the CSLLI, ICE BAML High
Yield Index and S&P 500 for the same period.

·      As at 30 November 2021, none of MPLF's investment vehicles had
exposure to Riverbed Technology, the sole S&P/LSTA index constituent that
defaulted in November.  The index's lagging 12-month default rate by notional
amount increased to 0.29%, which is the second lowest lagging 12-month default
rate for the Index since December 2011.

 

Market

·      The CSLLI delivered a (0.15%) return in November as the average
indicative bid price of the CSLLI declined to 98.06% at 30 November from
98.53% at 31 October.  The index had risen during the first three weeks of
the month, before declining after the Thanksgiving holiday due to the concerns
from the omicron COVID-19 variant.  The weighted average indicative bid price
of MPLF's underlying loans declined to 98.35% at 30 November from 98.78% at 31
October.

·      November was a record month for CLO issuance with 54 new issue
CLOs totaling $26.4 billion pricing during the month. This is the highest
monthly total on record, surpassing the October 2021 tally of $19.8 billion.
In addition to New Issue, 14 CLO refinancings totaling $5.7 billion and 23 CLO
resets totaling $11.3 billion priced during the month according to
S&P/LCD.

·      Institutional loan volume totaled $60.6 billion in November
according to S&P/LCD, driven again by M&A related activity.
M&A related loan issuance over the past three months totaled approximately
$109 billion, the first time this rolling tally exceeded $100 billion.

·      Retail loan funds experienced an inflow of approximately $3.1
billion in November, representing the twelfth consecutive month of inflows, as
reported by J.P. Morgan.

·      Since the end of November, the average indicative bid price of
the CSLLI has increased by 0.20% to 98.27% (as at 20 December 2021).

 

Investment

·      Marble Point has continued to capitalize on receptive CLO
liability markets to unlock value in existing financing vehicles, and
structure new investments with return profiles consistent with the fund's
return objectives.

·      During the month MPLF invested an incremental $0.5 million in a
loan accumulation facility ("LAF") in support of the continuing ramp of assets
related to the issuance of Marble Point CLO XXIII. The total MPLF investment
in this LAF at the end of November was $4.5 million.

·      During the month MPLF invested $5.0 million in a separate LAF in
support of the continuing ramp of assets related to the future issuance of
Marble Point CLO XXIV. Supported by this and third party equity capital, the
total amount of ramped assets in the LAF was $126.0 million as at 30 November
2021.

·      As previously disclosed, during the month Marble Point closed a
reset of Marble Point CLO XVI ("MP16"), in which MPLF holds $23.8 million
notional of the equity tranche.  The reset extends the reinvestment period by
five years and tightened the weighted average cost of debt by approximately 27
basis points from L+210 to L+183.  Additionally, the reset upsized the target
par amount of the transaction by $25 million.

·      On 23 November, Marble Point priced CLO XXIII ("MP23") at which
time MPLF committed to roll its $4.5 million investment in the LAF and is
contemplated to invest up to $3.0 million incremental proceeds in the equity
tranche of the deal upon closing.  The closing of MP23 is expected to occur
on 29 December 2021.

·      MP23 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 LIBOR+191 basis points

o  An estimated effective yield of 14.0-16.0% as at the pricing date of the
transaction

 

MPLF's November 2021 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:  ir@mplflimited.com (mailto:ir@mplflimited.com)

Website: www.mplflimited.com (http://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 (mailto: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 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 was founded by
Thomas Shandell in partnership with Eagle Point Credit Management, a leading
investor in CLO securities.

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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