Ranger Direct raises £30m in refinancing as part of fund closure

RANGER Direct Lending (RDL) has raised $38m (£29.5m) by refinancing one of its investments from its portfolio, as part of the wind-down of the beleaguered investment trust.

In connection with this process, the International MCA Platform has refinanced and paid off its notes issued by RDL.

A stock market update said the fund was still in “active discussions with potential counterparties” about the orderly sale and/or re-financing of the company’s investment portfolio.

RDL announced in June 2018 that it would be closing down, amid concerns over its performance and management changes. Two of the fund’s largest shareholders, Oaktree Capital Management and LIM Advisors, had been calling for the fund to be wound down for several months.

Analysts backed the latest move.

“It is positive to see a substantial amount of cash by realised by Ranger at the current valuation,” Numis said.

“The fund has recently returned excess cash via two special dividends, and we would expect a further return of capital given these proceeds.

“The outlook remains highly uncertain for the rest of the portfolio and as more investments are realised and cash returned, the portfolio will become more concentrated on the difficult to realise investments. “

However, Numis warned that the fund continues to have exposure to the bankruptcy of its Princeton holding.

Chairman Christopher Waldron has departed and a new board, tasked with winding down the fund, was appointed at the annual shareholder meeting in July.