Company Announcements

20 July 2021

Continued growth and outperformance; NAV return of 122.2% since March 2020; 12.3% Dividend Yield

The net asset value ("NAV") of Marble Point Loan Financing Limited ("MPLF") as at the close of business on 30 June 2021 is as follows:

Performance

·      MPLF's NAV total return was 0.68% in June, compared to the total return of the Credit Suisse Leveraged Loan Index of 0.41%.

·      Secondary loan prices rose slightly in June, reflecting continued support by technical forces from strong CLO formation and consistent retail inflows from mutual fund investors.

·      MPLF has continued to outperform relevant benchmarks over the past year, delivering a cumulative NAV return of 122.2% since March 2020 compared to 22.5%, 26.7% and 69.7%, respectively, for the CSLLI, ICE BAML High Yield Index and S&P 500 for the same period.

·      For the fourth consecutive month, no constituents of the S&P/LSTA Index defaulted in June, and MPLF experienced no defaults in its underlying portfolios. The Index's lagging 12-month default rate by notional amount decreased to 1.25% at June 2021.  This is the lowest lagging 12-month default rate for the Index since May 2019.

Market

·      The CSLLI delivered a 0.41% return in June, as prices rallied with strong demand. The average indicative bid price of the CSLLI increased to 97.96% at 30 June from 97.82% at 31 May.  The weighted average indicative bid price of MPLF's underlying loans decreased to 98.72% at 30 June from 98.79% at 31 May.

·      CLO issuance in June remained strong as 31 new issue CLOs totaling $15.7 billion priced during the month.  The second quarter of 2021 was the busiest on record for CLO issuance with $41.3 billion of new issue volume. CLO refinancing and reset transactions also maintained significant volume as managers and equity investors continued to access CLO liability markets and improve their financing on existing deals.  23 refinancings totaling $8.8 billion and 30 resets totaling $17.0 billion priced during the month according to S&P/LCD.

·      Institutional loan volume totaled $58.4 billion in June according to S&P/LCD, the highest monthly total since March 2021.  Additionally, M&A related loan supply totaled $37.2 billion in June 2021, the highest monthly tally post-pandemic.  The total par amount outstanding of the S&P/LSTA Index increased by $51.1 billion in the second quarter, the largest quarterly growth figure for the loan market in three years.

·      Retail loan funds experienced an inflow of approximately $4.4 billion in June, representing the seventh consecutive month of inflows, as reported by J.P. Morgan.

·      Since the end of June, the average indicative bid price of the CSLLI has increased by 0.05% to 98.01% (as at 14 July 2021)

Investment

·      Marble Point has continued to capitalize on receptive CLO liability markets to unlock value in existing financing vehicles, and structure new investments with return profiles consistent with the fund's return objectives.

·      As previously disclosed, on 10 June Marble Point closed the reset of the MP CLO VIII transaction, in which MPLF holds $24.38 million notional of the equity tranche.  In connection with the closing of the reset MPLF invested an incremental $0.7 million in the equity tranche.

·      On 30 June Marble Point priced the Marble Point CLO XXII ("MP22") transaction, at which time MPLF committed to invest $13.9 million in the equity tranche of the CLO. MP22 is a "call & roll" of MP CLO IV ("MP4"), in which the MP4 deal will be redeemed and the assets rolled into the new CLO, MP22.    The MP4 reinvestment period was scheduled to end in July 2021, while MP22 will provide for a new 5 year reinvestment period. 

·      In connection with the contemplated July closing of the transaction, MPLF's $15.6 million notional strip of debt securities in MP4 will be redeemed at par plus accrued interest.  Additionally, MPLF's MP4 equity holding is expected to receive a residual distribution of approximately $4.9 million.   Accordingly, MPLF is expected to receive approximately $6.8 million net proceeds from the call & roll transaction.

·      As noted below, the 14.0-16.0% estimated effective yield for the new MP22 CLO equity investment by MPLF is significantly higher than the 2.1% effective yield reported for the MP4 CLO debt securities in which MPLF is presently invested. 

·      Marble Point CLO XXII is expected to have the following features:

o  A reinvestment period of approximately five years

o  A two year non-call period

o  A 13 year final maturity

o  A weighted average cost of debt of LIBOR+184 basis points

o  An estimated effective yield of 14.0-16.0% as at the pricing date of the transaction

·      During the month Marble Point priced a refinancing of the senior most class of debt of MP CLO VII in which MPLF holds $23.7 million notional value of the equity tranche.  The refinancing improved the CLO's weighted average cost of debt, which aggregates $499.2 million, by 13 basis points from L+174 to L+161 and closed on 22 June.

·      During the month MPLF invested an incremental $0.95 million in a loan accumulation facility ("LAF") in support of the continuing ramp of assets related to the future issuance of Marble Point CLO XXI. The total MPLF investment in this LAF at the end of June was $1.9 million.

·      Subsequent to month end, MPLF invested $3.0 million in a new LAF in support of ramping assets related to an issuance of a new CLO later this year.

MPLF's June 2021 Monthly Report is available on its website: www.mplflimited.com 

Enquiries:

Marble Point Loan Financing Limited

Investor Relations

T:  +44 (0) 20 7259 1500

E:  ir@mplflimited.com 

Website: www.mplflimited.com 

Corporate Broker:

Stifel Nicolaus Europe Limited

T:  +44 (0) 20 7710 7600

Financial Public Relations:

Charlie Barker / Catherine Chapman

MHP Communications

T:  +44 (0) 20 3128 8100

MarblePoint@mhpc.com

⁽¹⁾ NAV figures are provided for informational purposes only and are unaudited, estimated by Marble Point Credit Management LLC ("Marble Point"), the investment manager of MPLF, and subject to adjustment. Marble Point estimates MPLF's NAV on a monthly basis as at the end of each month. Estimates with respect to a date falling on a calendar quarter end are subject to revision when the quarterly NAV is determined. NAV is calculated as the sum of the value of MPLF's investment portfolio, any cash or cash equivalents and other assets less liabilities. NAV is reduced by the amount of a dividend to the extent the ex-dividend date occurs during the period presented.   NAV total return figures shown are estimated, unaudited and subject to adjustment and reflect the net total NAV return, inclusive of dividends, for the periods shown and as from MPLF's admission to the Specialist Fund Segment of the main market of the London Stock Exchange on 13 February 2018, after taking into account applicable listing and offering costs and pre-admission profits and loss. Monthly and cumulative performance figures are non-annualised and such results reflect the deductions of applicable management fees and expenses at the underlying investment levels.

 ⁽²⁾ The indices shown have not been selected to represent a benchmark for MPLF's performance, but rather to allow for comparison of MPLF's returns to those of known, recognized and/or similar indices. The Credit Suisse Leveraged Loan Index (CSLLI) tracks the investable universe of the U.S. leveraged loan market. The ICE BofAML US High Yield Index (ICE BAML HYI) tracks the performance of USD-denominated below investment grade corporate bonds publically issued in the U.S. domestic market. The Standard & Poor's 500 Index (S&P 500) tracks the performance of U.S. public equity markets and is based on the market capitalization of 500 large companies having common stock listed on NYSE or NASDAQ. The performance of any index is not an exact representation of any particular investment as you cannot invest directly in an index.

⁽³⁾Figures shown for effective yield are estimated, unaudited, subject to change and based on the analysis of Marble Point Credit Management LLC, the investment manager of MPLF, as at the Closing Date.  The estimated effective yield is provided for illustrative purposes only.  The actual effective yield, as recorded by MPLF, MP CLOM or other entity holding the investment may vary over time.

Past performance is not indicative or a guarantee of future performance.

This release contains inside information.

About Marble Point Loan Financing

Marble Point Loan Financing Ltd. (LSE Ticker: MPLF LN (USD); MPLS LN (GBX)) is a Guernsey-domiciled closed-ended investment company. MPLF's investment objective is to generate stable current income and grow net asset value by earning a return on equity in excess of the amount distributed as dividends.

MPLF is invested in a diversified portfolio of US dollar denominated, broadly syndicated floating rate senior secured corporate loans owned via collateralised loan obligations ("CLOs") and related vehicles managed by Marble Point Credit Management LLC.

About Marble Point Credit Management LLC

Marble Point Credit Management LLC ("Marble Point") is a specialist asset manager focused exclusively on leveraged loans.  Marble Point was founded by Thomas Shandell in partnership with Eagle Point Credit Management, a leading investor in CLO securities.

IMPORTANT INFORMATION

Marble Point Loan Financing Limited (the "Company") is a closed-ended investment company incorporated in Guernsey with its ordinary shares ("Shares") admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange (ticker: MPLF.LN). The Company is invested in a diversified portfolio of US dollar denominated, broadly syndicated floating rate senior secured corporate loans via CLOs, loan accumulation facilities and other vehicles managed by Marble Point Credit Management LLC ("Marble Point") or its affiliates. Marble Point is an investment adviser registered with the U.S. Securities and Exchange Commission.

This document is provided for informational purposes only and does not constitute an offer to sell any Shares, notes or other securities (collectively, "Securities") issued by the Company or a solicitation of an offer to purchase any such Securities in the United States, Australia, Canada, the Republic of South Africa, Japan or any other jurisdiction. This document may not be relied upon, and should not be used, for the purpose of making any investment decision. This document and the information and views included herein do not constitute investment advice or a recommendation or an offer to enter into any transaction with the Company or any of its affiliates. Any recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of any investment and should consult its own legal counsel and financial, actuarial, accounting, regulatory and tax advisers to evaluate any such investment. This document has been issued by the Company and is the sole responsibility of the Company.

The Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold in the United States to, or for the account or benefit of, U.S. persons unless they are registered under applicable law or exempt from registration. The Company has not been and will not be registered under the U.S. Investment Company Act of 1940, and investors will not be entitled to the benefits of such Act.

The information shown herein is estimated, unaudited, for background purposes only, representative as of the dates specified herein, subject to adjustment and not purported to be full or complete. Nothing herein shall be relied upon as a representation as to the current or future performance or portfolio holdings of the Company or any strategy or investment vehicle. Certain information presented herein has been obtained from third party sources and is believed to be reliable. However, neither the Company nor Marble Point represents that the information contained in this document (including third party information) has been independently verified or is accurate or complete, and it should not be relied upon as such. Index information, if any, has been provided for illustration purposes only. Any such information does not reflect the effect of transaction costs, management fees or other costs which would reduce returns. An investor cannot invest directly in an index.

There is no guarantee that any of the goals, targets or objectives described in this document will be achieved. The investment strategies of the Company may not be suitable for all investors and are not intended to constitute a complete investment program. Neither Marble Point nor the Company makes any representation or warranty (express or implied) with respect to the information contained herein (including, without limitation, information obtained from third parties) and each of them expressly disclaims any and all liability based on or relating to the information contained in, or errors or omissions from, these materials; or based on or relating to the use of these materials; or any other written or oral communications transmitted to the recipient or any of its affiliates or representatives in the course of its evaluation of the information herein.

Any of the views or opinions expressed herein are current views and opinions only and may be subject to change. Statements made herein are as of the date of this document and should not be relied upon as of any subsequent date. All information is current as of the date of this document and is subject to change without notice.

Past performance is not a reliable indicator of current of future results. The value of investments may go down as well as up and investors may not get back any of the amount invested. The value of investments designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currencies. Adverse movements in currency exchange rates can result in a decrease in return and a loss of capital.

A Note on Forward Looking Statements. This document includes forward-looking statements. Forward-looking statements include all matters that are not historical facts. Actual results may differ materially from any results projected in the forward-looking statements and are subject to risks and uncertainties. Such statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, and other factors that may cause actual results to differ materially from the anticipated results expressed or implied by such forward-looking statements. The Company and Marble Point caution readers not to place undue reliance on such statements. Neither the Company nor Marble Point undertakes, and each specifically disclaims, any obligation or responsibility, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's and/or Marble Point's expectations and estimates.

None of the Company, Marble Point or any of their respective parent or subsidiary undertakings, or the subsidiary undertaking of any such parent undertakings, or any of such person's respective partners, shareholders, directors, members, officers, affiliates, agents, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any information or opinions presented or contained in this document nor shall they accept any responsibility whatsoever for, or make any warranty, express or implied, as to the truth, fullness, accuracy or completeness of the information in this document (or whether any information has been omitted from the document) or any other information relating to the Company, Marble Point or their respective subsidiaries or associated companies, in any form whatsoever, howsoever transmitted or made available or for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith. This shall not affect any liability any such person may have which may not be excluded under applicable law or regulation.