UK investment trust RM Secured Direct Lending confirmed its intention to issue further shares, in order to raise funds to invest in an attractive pipeline of opportunities across a range of sectors.
The company, who specialise in secured debt lending to businesses, said they had fully committed the funds raised at its IPO in December 2016 and are now looking for further financing.
The New Ordinary Shares will be issued at a price of 101.25 pence per New Ordinary Share, being a premium of 3.84 per cent. to the Company’s NAV per Ordinary Share,.
RM Secured Lending also confirmed that remains on track to achieve its stated annualised dividend yield target of 4 percent p.a in its first year, rising to 6.5 percent thereafter for the year to 31 December 2018
In a statement, the group said its Board was “committed to growing the Company over time which will enable it to further diversify its existing portfolio, spread the fixed costs of running the Company across a wider base and increase secondary market liquidity for investors.”
“Accordingly the Company will look to issue further shares under the Placing Programme as and when appropriate,” it added.
The company also confirmed it is in the “advanced stages” of negotiating a rolling credit facility to provide added flexibility for new investments.
