ICG-Longbow writes Quattro Loan

By James Buckley - Wednesday, October 18, 2017 15:21

ICG-Longbow has completed a £9m loan to a privately-held property company and announces a non pre-emptive placing of new shares.

The Quattro Loan, which matures in January 2021, carries an initial LTV ratio of 83.7% and is secured by first ranking charges against a portfolio of three mixed-use properties located in the London Borough of Kingston.

ICG-Longbow says the portfolio provides significant value creation opportunities through implementation and realisation of residential planning permissions.

As well as a coupon, the loan contains a profit participation component to allow the company to share in this expected value growth. The loan is in accordance with the company's revised investment policy, approved by shareholders at the EGM in March 2017.

ICG-Longbow will initially finance a £6m participation in the Quattro Loan, which reinvests substantially all of the cash held by the company following the repayment of the Lanos (York) loan. A £3m minority participation is held by Intermediate Capital Group plc, and the company has the right to acquire this participation at par within 90 days.

Based on the £6m loan participation, the company's weighted average investment coupon increases to 6.22%, LTV increases to 59.3% and weighted average ICR reduces to 215%.


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