ICG-Longbow taps investors for capital amid strongest market opportunities in five years

By James Wallace - Tuesday, March 13, 2018 11:43

ICG-Longbow has announced a further share placing for its £111.2m listed fund to a near term pipeline in excess of £50m, as the listed debt fund seeks to capitalise on “attractive market conditions for UK real estate debt investments”.

In its quarterly factsheet, ICG Longbow characterised the market for granular UK senior loans for its target term and leverage parameters as “as strong and deep as we have seen since the company’s IPO in 2013”.

The pipeline of the Senior Secured UK Property Debt Investments Limited, which has an outstanding balance of £111.2m across 10 loans, includes a £17.5m loan to a London industrial estate with an expected LTV of approximately 65%. The loan is subject to contract and due diligence.

ICG Longbow has a remaining 22.4m ordinary shares with shareholder preapproval to issue under the debt fund’s current placing programme authority. Investors wishing to subscribe to today’s announced placing will receive ordinary shares priced at 101p, a 1.71% premium to the latest estimated net asset value of 99.3p as at 31 January 2018. New shares however will not be entitled to the dividend of 1.5 pence per share declared by the company on 13 March 2018 and payable to shareholders on 20 April 2018.

Cenkos Securities plc is acting as the Company’s sole placing agent in relation to placing. The placing opens immediately and is expected to close at 1.00 p.m. (London time) on 22 March 2017.

“The investment adviser continues to reposition the group’s loan book as original investments come towards the end of their contractual terms, with circa £45m of investments having been extended or newly originated in the past six months.

“We continue to look to extend or retain existing loans,” continued ICG Longbow, “which is as strong and deep as we have seen since the company’s IPO in 2013”.

James Wallace is a freelance consultant and can be reached via WhatsApp on 07825 382670 or email: jawallace32@gmail.com


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