QuotedData’s morning briefing 9 November 2020

Two new vessels for Tufton Oceanic Assets : SHIP

In QuotedData’s morning briefing 9 November 2020 –

  • Tufton Oceanic Assets (SHIP) has agreed to divest one Suezmax Tanker for $19m. The divestment will reduce the company’s fleet from nineteen to eighteen vessels. SHIP says that the realised yield and internal rate of return (IRR) will greatly exceed the targets expressed in its prospectus. This will be the company’s second divestment, with the proceeds expected to be deployed over the next few months. SHIP says that it will take advantage of opportunities to sell assets where this generates additional value for shareholders.
  • Over the quarter-end period to 30 September, HgCapital Trust (HGT) delivered total NAV and share price returns of 12.3% and 20.6%. In the manager’s outlook section, it is noted that: ” We expected the pandemic to have a limited direct impact on Hg’s portfolio, given the defensive growth characteristics of the portfolio and our low exposure to the most immediately affected industries, such as travel and retail. Our companies remain focused on selling business‑critical and non‑discretionary software and services to their underlying customers, typically with highly predictable business models and high levels of robust, recurring revenue. Nevertheless, we do expect to encounter the headwinds of lower global growth in 2020. While it is possible that some of our investments may deliver year‑on‑year declines in organic performance against this backdrop, we still expect that the portfolio will, in aggregate, continue to deliver growth over the medium and long term.” 
  • Target Healthcare REIT, the specialist investor in care homes, has extended and increased its debt facilities with the Royal Bank of Scotland and HSBC. The group has increased its existing revolving credit facility (RCF) with HSBC to £100m from £80m. The RCF has an initial three-year term to November 2023 with the option of two one-year extensions thereafter. It has also increased its existing committed term loan and RCF with RBS to £70m from £50m. The RBS facility has a five-year term to November 2025. When combined with the group’s £50m committed term loan facility with ReAssure, which expires in January 2032, the new facilities increase the group’s total borrowing capacity to £220m from £180m. The weighted average term to maturity has increased to 5.5 years from 3.9 years, while the weighted average cost on its drawn debt of £152m is 2.9%.
  • Vietnam Holding said it would repurchase 7,585,249 Shares at $2.5857 per share in association with its tender offer.

We also have news of additional investment by BioPharma Credit, acquisitions by Urban Logistics REIT and a trading update from Schroder REIT.

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