OakNorth has completed a £10m debt finance deal for RM Secured Direct Lending PLC (RMDL).
RMDL – a closed-ended investment trust – specialises in secured debt for businesses and is listed on the London Stock Exchange.
It aims to generate dividends through secured loans to businesses sourced or originated by investment manager RM Capital.
These loans are mostly secured against assets, such as real estate, plant, machinery or income streams.
Since listing in December 2016, RMDL has invested in 21 loans across 11 sectors, such as healthcare, energy, property, hospitality and leisure.
Ben Barbanel, head of debt finance, and Mohith Sondhi, debt finance director, both at OakNorth, said: “We are very excited to have completed this transaction with RM Secured Direct Lending – not only is this our first transaction with a listed company, but it is also our first loan to an investment trust.
“Our credit committee was reassured by the extensive experience of the management team – over 120 years collectively – as well as RMDL's strong track record and diversified portfolio.
“Given that we have worked with RMDL on two transactions in the past, we also had a good understanding of how they operate.”
Last month, RMDL raised an additional £30m to build its portfolio of investments. The average yield on its investments is 8.26% with an average investment lifespan of 3.74 years.
James Robson, chief executive officer at RM Capital Markets, said: “We chose OakNorth because having worked with them with on two previous transactions, they understood our business and our needs and were able to provide a flexible and competitive offer to meet them, in the timescale required.”
RMDL previously partnered with OakNorth on two joint loans, to finance the development of the L'Oscar hotel in central London and to Strawberry Star for the purchase and development of a mixed-use site in Wandsworth.
James added: “We share a similar set of values and they also have an excellent understanding of the complex SME lending market and the unique needs of mid-market companies that we invest in.
“We look forward to deploying these funds into quality businesses.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Paragon BTL lending pipeline up 28.9%
Paragon Banking Group PLC has reported a 28.9% increase in its BTL lending pipeline for the year ended 30th September 2018...
George Osborne optimistic that Open Banking will be ‘dramatic’ to industry
George Osborne has claimed that the big banks won’t necessarily look to move more quickly towards Open Banking as it represented a competitive threat to them...
Santander launches 'invisible cinema' experience to help tackle fraud
Santander has launched an ‘invisible cinema’ experience to teach under-25s about the importance of keeping financial information safe...
New CEO joins Buckinghamshire Building Society
Gerard O’Keeffe (pictured above) has started his role as the new CEO at Buckinghamshire Building Society...
STB Commercial Finance expands North West team
Secure Trust Bank (STB) Commercial Finance has appointed John Copping (pictured above) as regional sales director for the North West...
300 companies sign up to Women in Finance Charter
A total of 300 companies have now signed up to HM Treasury’s Women in Finance Charter....
Hanley Economic offers self-build product in Scotland
Hanley Economic Building Society has extended its self-build and residential mortgage offerings into Scotland with immediate effect...
Why it’s important to encourage female entrepreneurs
On Women’s Entrepreneurship Day, we honour women in business, their fearless ambition, their achievements and successes...
TSB names new CEO
The board of TSB Bank PLC – with the support of Sabadell – has announced that Debbie Crosbie (pictured above) will become its new CEO in 2019, subject to regulatory approval...
Tandem opens community beta testing for autosavings
Tandem has invited its existing app users to join its autosavings beta testing community to help test its new proposition...
Secure Trust Bank enters Right to Buy market
Secure Trust Bank Mortgages (STB) has launched into the Right to Buy market with a range of mortgages for tenants looking to purchase their existing home...