QuotedData’s morning briefing 15 July 2020

GCP Infrastructure Investments
  • GCP Asset Backed Income (GABI) said that so far, in the current financial year to 31 December, it has received all expected interest and principal on time and in full, while also generating significant fees from early loan repayments. In its outlook, GABI said: “The loan book continues to perform and the dividend remains fully covered. The Investment Manager remains encouraged by the financial position of our borrowers, the steps each borrower is taking in managing an unprecedented situation and the support they are receiving from their equity investors. The defensive nature of the portfolio means significant income will continue to be generated and distributed as dividends. We continue to seek out and look for attractive opportunities, both supporting our existing borrowers and assessing new transactions which were historically too tightly priced for the group’s cost of capital.”
  • Macau Property Opportunities (MPO) said that all of mainland China is now off Macau’s list of highly infected areas, which means all visitors from mainland China can now enter Macau without undergoing quarantine, which MPO noted should pave the way for the gradual recovery of Macau’s economy. Covid-19 containment measures have taken a heavy toll on Macau’s gaming and tourism-led economy. MPO notes Macau’s economy contracted by 49% year-on-year in real terms, over the first quarter of 2020.
  • SQN Secured Income said its board has determined that the company should be put into managed wind-down with cash returned to shareholders in a timely and efficient manner. There will be a circular published within the next few weeks, a meeting will be convened and shareholders will be asked to amend the investment objective and policy and approve any related matters necessary to facilitate a managed wind-down. The longest dated loan in the portfolio matures in March 2026, whereas the weighted average life of the portfolio is 2.9 years which includes some extensions for Covid. Brett Miller has been appointed as a non-executive director. He will be working with the rest of the board and the investment manager to help maximise shareholder returns.

We also have an update from JZ Capital Partners.

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