London Stock Exchange welcomes RM Secured Direct Lending plc
RM Secured Direct Lending PLC (the “Company” or “RMDL”), a specialist lender to small and mid-sized companies, today opened market trading following it successful £50.3m IPO on the Main Market.
The Company aims to fill the lending market currently underserved by banks and other non-bank lenders by providing well-established UK small and mid-market companies with access to capital at attractive levels.
RMDL will provide direct, bespoke loans to companies across a variety of sectors, with strong management teams and good visibility over cash flow and earnings, supported by tangible security packages. Typical investments will range from £2-10m, with maturities ranging from 3-15 years, secured over real assets such as plant, property and equipment.
The Company’s focus will be on Loans which are directly originated or sourced by RM Capital Markets Limited (the “Investment Manager”) with a degree of inflation protection through index-linked returns (where appropriate) and which will aim to generate attractive and regular dividends.
The Company will target an annualised dividend yield of 6.5 per cent. (on the Issue Price) once fully invested, with a target of 4 per cent. (on the Issue Price) in the initial financial period from Admission to 31 December 2017.
Nplus1 Singer Advisory LLP acted as sponsor, placing agent and advisor. Gowling WLG LLP provided legal advice to the Company.
Commenting, Chief Investment Officer, James Robson, said:
“We are delighted to have raised £50.3m. The funds raised will be used to provide our initial pipeline of established UK small to mid-market corporates with alternative credit solutions on a secured basis. We will continue to source attractive lending opportunities, across a variety of sectors and secured against a range of assets, that will enable us to deliver long-term value for shareholders while also enabling the growth and development of well-established businesses.”
About the Investment Manager
The Investment Manager is RM Capital Markets Limited which is authorised and regulated in the UK by the FCA.
RM Capital specialises in credit sales & trading, foreign exchange, capital markets and advisory and direct lending. Founded in 2010, with offices in Edinburgh, London and Paris, it has transacted in excess of £50 billion of bonds and loans since its inception, and advised or originated, structured and managed the due diligence process for over £1 billion of Sterling credit transactions and approximately €600 million of Euro based transactions in each case since 2012.
RM Funds is a trading name of RM Capital Markets Limited.