5th Aug 2019 14:34
(Alliance News) - ICG-Longbow Senior Secured UK Property Debt Investments Ltd on Monday said it has entered a new GBP12.5 million commitment to refinance a loan and received a GBP8.0 million loan repayment plus interest.
ICG-Longbow Senior entered the new commitment to refinance its Northlands portfolio loan for a three-year term. The loan has an initial loan-to-value ratio of 55%.
Meanwhile, the GBP8.0 million Ramada Gateshead loan has been repaid in full, alongside around GBP200,000 of interest and exit fees.
ICG-Longbow Senior, which aims to build a UK real estate debt portfolio, plans to use the Ramada Gateshead proceeds to finance a hotel portfolio loan of GBP15.3 million, with more details to come "shortly".
ICG-Longbow Senior also said the borrower of its Meadow loan has obtained planning permission on "a major residential development" on the property that is securing the loan. At the most recent valuation, the loan-to-value ratio for the investment dropped to 46% from 70%, taking the company's entire pro forma weighted average loan-to-value to 60% from 66%.
Looking ahead, ICG-Longbow Senior is executing another approximately GBP31 million of transactions to be signed "in the coming weeks". Once these close, the company's cash will be fully committed, and its working capital facility will be mostly drawn.
At that point, the company said, "full dividend cover should be restored".
Shares in ICG-Longbow Senior were untraded on Monday afternoon in London, last closing at 98.50 pence.
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