21st Apr 2016 17:10
LONDON (Alliance News) - Blackstone / GSO Loan Financing Ltd on Thursday said its net asset value per euro share had fallen over 2015, as the number of shares in the company rose.
Blackstone, which invests in floating rate senior secured loans, said it ended 2015 with a net asset value per euro share of EUR0.9839 from EUR0.99 a year earlier.
This came as the value of investments in the company rose to EUR326.0 million over the year December 31, from EUR299.3 million a year earlier, but the number of shares in the company rose to 331.3 million from 301.2 million
Blackstone said it was targeting a dividend of 2.0% per quarter, equating to an annualised return of 8.0%, with the expectation of progressive growth.
"We continue to believe that senior secured loans offer attractive risk adjusted yields and have lower volatility of returns due to a stable investor base and strong downside protection from being at the top of the capital structure," the company said in a statement.
"Combining these attributes with the improving macroeconomic picture in Europe, quantitative easing and the weak euro, the outlook for European senior secured loans is positive with collateralized loan obligation issuance in 2016 projected to be in line with 2015 and the target of EUR15.00 billion benefitting from a benign credit environment and an accommodative ECB policy. The involvement of Asian investors in some of 2015's European collateralized loan obligations also raises hopes for a more meaningful broadening of the investor base in 2016," Blackstone said.
"US loan market fundamentals should remain strong and we continue to believe that the market is in the middle of a correction as overhanging factors, such as weakening emerging market growth and an enduring commodity sell off, are unlikely to be resolved during the next two quarters," Blackstone added.
Shares in Blackstone closed up 2.3% at EUR0.890 on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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