Paid to wait

Offering a c11% yield and trading on a c23% discount to NAV, BGLF’s valuation is undemanding. That said, given the current environment we see no short-term catalyst for a re-rating. It is more a case of being paid to wait. We view BGLF’s dividend (7-8c pa, paid quarterly) as robust and well supported by the portfolio fundamentals. A rising interest rate environment has a modest positive impact on fund’s cash flows.

Revisiting the case for CLOs

We take a step back and revisit the case for investing in CLOs, why this could be a timely consideration given current market conditions, and the opportunity presented by BGLF. Notably, the shares continue to pay a high dividend yield (c. 9.7% based on the mid-point of the €0.06 to €0.07 FY2020 dividend target) even at the reduced level, and the shares continue to trade on a discount of c. 14%.

Exploiting the continuing loan recovery

Blackstone/GSO Loan Financing (‘BGLF’) is the only listed investment company on the London Stock Exchange that invests in European and US CLOs, via the originator, Blackstone/GSO Corporate Funding (‘BGCF’). The exposures to European CLOs comply with EU risk retention rules. The company is advised by an experienced manager, GSO Capital Partners, part of The Blackstone Group (‘Blackstone’), in a low-cost management structure with ongoing charges of just 0.4%. On top of that, the interests of the c

Fidante Daily Digest

Blackstone / GSO Loan Financing – April 2019 NAV | AEW UK Long Lease – Q1 2019 NAV and MMT update

Fidante Daily Digest

Blackstone / GSO Loan Financing – Finals to 31 December 2018 | Impact Healthcare REIT – Q1 2019 NAV and dividend

Fidante Daily Digest

US Solar Income – Revised IPO timetable | Blackstone / GSO Loan Financing – February 2019 NAV | Supermarket Income – Results of fundraising

Fidante Daily Digest

BGLF* - Blackstone / GSO Loan Financing - December 2018 NAV | CIFU - Carador Income - December 2018 NAV and dividend | RESI - Residential Secure Income - Partnership agreement | AGR - Assura - Trading update to 31 December 2018

Loans underpinned by recent sell-off

Blackstone/GSO Loan Financing (‘BGLF’) is the only listed investment company on the London Stock Exchange that invests in European and US CLOs, via the originator, Blackstone/GSO Corporate Funding (‘BGCF’). The exposures to European CLOs comply with EU risk retention rules. The company is run by an experienced manager, GSO Capital Partners, part of The Blackstone Group (‘Blackstone’), in a low cost management structure with ongoing charges of just 0.3%. On top of that, the interests of the compa

Fidante Daily Digest

Blackstone / GSO Loan Financing - C share issue posponed | Carador Income - BGLF C share issue postponed

Fidante Daily Digest

Blackstone / GSO Loan Financing - Rollover offer and issue of C shares | Carador Income - Rollover opportunity | Third Point Offshore - Corporate update | Starwood European Real Estate Finance - Investment update

Fidante Daily Digest

Blackstone / GSO Loan Financing - November 2018 NAV | Carador Income - November 2018 NAV | Aberdeen Standard Euro Logistics Income - Company update | Greencoat UK Wind - Acquisition and acquisition facility | Yew Grove - Acquisition and trading update

Fidante Daily Digest

Blackstone / GSO Loan Financing – Q3 2018 report

Fidante Daily Digest

Augmentum Fintech – Interims to 30 September | Carador Income – Managed wind-down and rollover Invests in a portfolio of CLO securities | Blackstone / GSO Loan Financing – Circular and prospectus | TwentyFour Income – Proposed share issuance

Fidante Daily Digest

Carador Income – October 2018 NAV and partial redemption | Blackstone / GSO Loan Financing – October 2018 NAV | HICL Infrastructure – Interims to 30 September 2018 | Syncona – Interims to 30 September 2018

Fidante Daily Digest

Blackstone / GSO Loan Financing (BGLF*) – September 2018 NAV | Carador Income (CIFU*) – September 2018 NAV | BPCR - BioPharma Credit – Proposed fundraising | Phaunos Timber – Offer wholly unconditional

Morning Note – 22 April 2024

Benefits of scale set to materialise

Frenkel Topping - Resilient with strong growth potential

FY 2023 was a challenging year for Frenkel with higher interest rates encouraging clients to place money into lower margin money market funds. Despite this, sales grew +32% (supported by recurring revenue +9% and +51% in non-recurring), EBIT margins remained strong at 22% and adj. EPS grew +17% (taking into account the higher number of shares). FY 2024 has seen a solid start to transactional business and there is a strong pipeline of new FUM opportunities both of which support further growth. Wi

Bluefield Solar Income Fund – Fundamentals shine despite discount

The manger comments that, in common with the other trusts in the renewable energy sector, the last six months have continued what has been a challenging period for the Bluefield Solar Income Fund (BSIF). It adds that the trust’s ongoing fundamental performance has failed to reverse a steady slide in its share price which began back in May 2023. Despite this, it says the company has continued to deliver solid NAV growth and market-leading shareholder distributions thanks to a range of contractual

LSL Property Services (LSL LN) - Transformation & market recovery

2023 results are, as indicated in its February pre-close update, “slightly ahead of market expectations”. Current trading continues to improve, with 1Q24 underlying operating profit up yoy, “reflecting the benefits of the Group’s transformation programme completed in 2023 as well as improving market conditions.” With net cash of £35m at end 2023, the Board approved 7.4p final DPS and £7m buy back.

S&U - PBT ahead, encouraging volume trends

S&U reported FY24 PBT of £33.6m, down from £41.4m in FY23 on higher funding and regulatory costs and higher impairments in Advantage in H2. PBT was 2% ahead of our forecast as stronger revenues – up 12% to £115.4m – and better costs offset higher-than-expected impairments. Net receivables grew to a record at both Advantage and Aspen and management noted particular strength in Q4 and a good trading environment in the current year. Having absorbed a significant rise in funding cost as well as addi

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Foresight Solar Fund - Termination of coverage

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web

LIBERUM: PensionBee: Strong start to the new financial year

International Public Partnerships - Consistently and responsibly delivering

International Public Partnerships’ (INPP’s) FY23 results show that it continues to deliver consistent and predictable returns for investors, while delivering environmental and social benefits for the individuals and communities that are served by its assets. Despite this strong performance and a substantial need for private infrastructure funding, the macroeconomic environment has weighed on INPP’s share price, in common with the wider sector. Regardless, attractive returns are available from th

LIBERUM: NewRiver: Q4 trading update: Continued operational momentum

Regional REIT - Performing as expected ahead of refinancing

In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.

LIBERUM: PayPoint: On track for £100m of EBITDA in FY 26

LIBERUM: Speedy Hire: Weakness in FY 24 but recovery in FY 25

Hybridan Small Cap Feast - 22 April 2024

22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi