FINANCE: ICG-Longbow is going to raise £3.7m from a share placing for its senior debt fund to complete an £8m Gateshead debt deal.
The company intends to place 3.6m shares at a price of 102p to fund ICG-Longbow Senior Secured UK Property Debt Investments’ tenth loan.
These funds, combined with £4.5m of capital it already has, will allow it to complete its agreement to provide Quay Hotels with £8m, which will be secured by a first and only mortgage over the Ramada Encore 200-bedroom hotel in Gateshead.
As at 17 March, the company had announced nine investments totalling £97.2m, representing approximately 94.9% of the £102.5m it raised in February last year.
Conditional on completion of the Quay Hotels deal, the company will have made net investments in aggregate amounting to approximately £104.3m.
Its loan portfolio is expected to have an average coupon of approximately 7.39 % pa with a projected internal rate of return if held to maturity of circa 8.41% pa.
The average LTV exposure across all loans is expected to be around 62.2%, with an average interest coverage ratio of approximately 159%.
Investec Bank is acting as sole bookrunner.
bridget.o’connell@estatesgazette.com
