Eppley Limited (EPLY) has advised that the Company has effectively refinanced its US$ Preference Shares.
In a stock exchange notification, the company said, “As a result of requisite approvals received from holders of the US$ Preference Shares, the maturity date with respect to the US$ Preference Shares is now January 24, 2024 and the agreed dividend rate will be 6 per cent per annum, payable monthly, effective January 23, 2021.
Eppley’s Managing Director Nicholas Scott said the preference shares originally had a dividend rate of 5 per cent with a redemption date of January 23, 2021.
Following the transaction, the dividend rate remains five per cent until January 23, 2021 and thereafter will be six per cent until the new redemption date in 2024.
” This reflects the longer duration of the preference shares and market conditions.”– Eppley’s Managing Director Nicholas Scott
“The transaction demonstrates the capital market’s continued confidence in Eppley as a result of its long track record of consistently strong returns. It also improves Eppley’s mature profile, boosts its liquidity and allows it to take advantage of investment opportunities in its pipeline.”
Eppley provides loans and insurance premium financing.
The company produced earnings per share of $0.21 in the first quarter of 2020, a 6.5 per cent return for shareholders1
At the end of the quarter, net asset value was $4.08 per share. Proprietary Investment Portfolio at the end of the quarter we owned a $3.9 billion investment portfolio consisting of loans, leases, receivables and investments in mezzanine, real estate, infrastructure and asset management joint ventures and subsidiaries. The average income yield of our portfolio was 12 per cent.
The company cites portfolio diversification as its principal strength, with investments across multiple asset classes “many of which like real estate, infrastructure and secured loans and leases are defensive.” The company also indicated that it is not heavily exposed to any one industry, including tourism.
Directors added, “Our asset management business provides a stable stream of recurring earnings largely insulated from credit, market or liquidity risks.
The company says that focus in 2020 will be on navigating the landscape created by COVID 19 “and preparing to seize opportunities as they emerge.”
Eppley reported at year end 2019 that it has produced compounded average annual returns to shareholders of over 35 per cent as a public company.
At year-end 2019, its investment portfolio was $3.8 billion and the average return on portfolio was 12 per cent.