17th Mar 2016 11:02
LONDON (Alliance News) - ICG-Longbow Senior Secured UK Property Debt Investments Ltd Thursday said it has reinvested the funds secured from a previously made loan by providing a new loan to Commercial Regional Space Ltd, and said it remains on track to deliver its dividend guidance.
The senior debt investment company said it had been repaid an GBP18.1 million loan earlier this month and said it was in advanced discussions about redeploying those funds in a transaction that would be "accretive to shareholders".
On Thursday, ICG-Longbow said it has redeployed those funds and more by providing a GBP22.4 million loan to Commercial Regional Space and its affiliates.
The loan will mature in April 2019, and the loan amount represents just under 20% of ICG-Longbow's gross assets.
The loan has been secured against two multi-let industrial estates located in Lancashire comprising 1.25 million square feet of accommodation and providing a highly diversified income stream from lettings to over 140 tenants.
"This transaction reinvests substantially all of the cash held by the company following the repayment of the Mansion loan. The combined effect of the Mansion loan repayment and this reinvestment is materially accretive to shareholders, represented by an increase in net asset value of approximately 2.5 pence per share," said ICG-Longbow.
The company remains on target to maintain the current dividend rate of 6.0 pence per share per annum," the company added.
ICG-Longbow shares were trading up 0.2% to 102.67 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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