money-2696219

Marble Point Loan Financing

LN: MPLF

$88.5m market cap

$0.43 last close

MPLF’s investment objective is to generate stable current income and to grow net asset value by earning a return on equity in excess of the amount distributed as dividends, through exposure to a diversified portfolio of US dollar denominated, broadly syndicated, floating rate senior secured corporate loans. MPLF has no official benchmark but performance is compared with US leveraged loan and high-yield bond indices.

Investment summary

Marble Point Loan Financing (MPLF) is temporarily suspending its dividend due to the impact of COVID-19.The recent economic disruption has resulted in rating agencies downgrading the underlying collateral of MPLF’s collateralised loan obligations (CLOs) at a pace that could trigger its need to make provisions. The heightened risk is above that modelled by MPLF and could affect cash flow. MPLF’s policy is to maintain a well-funded dividend. In the last five quarters cash distributions have exceeded dividends by a good margin. With the total impact of COVID-19 uncertain, management believes it is prudent to preserve cash now, which will provide more flexibility for when dislocations in the credit market provide good investment opportunities.

Share price graph
Price performance
%
1m
3m
12m
Actual (2.3) (44.9) (47.6)
Relative* (8.3) (31.2) (36.4)
52-week high/low US$0.8/US$0.4
*% relative to local index
Key management
Robert Brown Chairman
Corey Geis Director of Capital Markets
Thomas Majewski Non-executive director
Thomas Shandell CEO & CIO

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