Net Asset Value(s)

RM Secured Direct Lending Plc and RM ZDP PLC

("RMDL" or the "Company")

LEI: 213800RBRIYICC2QC958

Net Asset Value

RMDL announces that its unaudited net asset value per ordinary share as at 31 July 2020, on a cum income basis, was 91.56 pence (30 June 2020: 91.16 pence). 

RM ZDP PLC announces that the unaudited accrued capital entitlement per ZDP share as at 31 July 2020 was 108.30 pence (30 June 2020: 107.98 pence).

NAV

The NAV total return for the month was 0.44%. The Ordinary Share NAV as at 31 July 2020 was 91.56 pence per share, which is 0.40 pence higher than at 30 June 2020, comprising interest income net of expenses of 0.13 pence per share and an increase in portfolio valuations of 0.27 pence per share which includes all credit and currency movements. This increase in portfolio value includes the movement of 0.41 pence per share recognised as income in June but moved to capital in July after further tax advice. This exceptional item has caused the corresponding reduction in income for July which if excluded the net interest income for the month was 0.54 pence, in line with other months.

Portfolio Activity

As at 30 July, the Company's portfolio consisted of 34 debt investments with a running yield of 8.70%, diversified across 13 sectors, with the percentage split between fixed and floating rate of 64% to 36%. The portfolio structure is 62% in bilateral private loans; 36% in club or syndicated private loans; and 2% in more liquid corporate bonds.

There were no significant investments during July. Portfolio valuations were largely stable during the month as the post pandemic credit rally paused. There is still significant value within the portfolio as the more liquid names have returned to at or near to pre-March levels while the less liquid names, which have had good trading performance during the crisis period, have lagged the price retracement. For example, Elysium Healthcare, Voyage Care and Valeo Foods have had robust trading updates and look to offer excellent value on a relative value basis.

The investments in operational hotels, which are the portfolio's largest sector exposure, have continued to perform with the servicing of their interest via timely cash payments. A hotel being constructed in Glasgow, representing 3% of Company net assets, is the one development exposure within the portfolio. There have been delays during the construction phase which the lending group have been working hard to resolve. The loan has been marked at 62.5% of par value which fairly represents the risks within the project, however it looks as if this is moving forward to a satisfactory conclusion with a new Hotel Management Agreement close to be being signed. This will then lead to an injection of additional equity capital and the lending group then committing to the finalisation of the construction phase.

The resilient performance of the portfolio to date reflects its defensive nature and the close active management of its investments. The Investment Manager continues to be confident in the outlook and RMDL's ability to generate attractive risk-adjusted returns.

Investor Relations

The report and accounts for the first six months of the year is due to be released on or around 17 August with a comprehensive portfolio update and will be available on the company website https://rmdl.co.uk/investor-centre/investor-relations/.

 The portfolio manager will be hosting an investor call at 2pm on 16 September. Investors who wish to listen into the call please register your interest by contacting Tulchan Communications on [email protected].

Investor questions should be submitted in advance to the Company's Brokers [email protected] and  [email protected].

The Company also announces that the Monthly Report for the period to 30 June 2020 is now available to be viewed on the Company website:

https://rmdl.co.uk/investor-centre/monthly-factsheets/

END

For further information, please contact:

RM Capital Markets Limited - Investment Manager

James Robson

Pietro Nicholls

Tel: 0131 603 7060

International Fund Management - AIFM

Chris Hickling

Shaun Robert

Tel: 01481 737600

Tulchan Group - Financial PR

James Macey White

Elizabeth Snow

Tel: 0207 353 4200

PraxisIFM Fund Services (UK) Limited - Administrator and Company Secretary

Brian Smith

Ciara McKillop

Tel: 020 4513 9260

Nplus1 Singer Advisory LLP - Financial Adviser and Broker

James Maxwell

Lauren Kettle

Tel: 020 7496 3000

Peel Hunt LLP - Financial Adviser and Broker

Luke Simpson

Liz Yong

Tel: 020 7418 8900

About RM Secured Direct Lending

RM Secured Direct Lending Plc ("RMDL" or the "Company") is a closed-ended investment trust established to invest in a portfolio of secured debt instruments.

The Company aims to generate attractive and regular dividends through loans sourced or originated by the Investment Manager with a degree of inflation protection through index-linked returns where appropriate. Loans in which the Company invests are predominantly secured against assets such as real estate or plant and machinery and/or income streams such as account receivables.

For more information, please see

https://rmdl.co.uk/investor-centre/monthly-factsheets/