RM SECURED Direct Lending has declared its second special dividend of the year, as it looks to raise £10m from investors.
The direct lending-focused investment trust is paying a quarterly dividend of 1.625p per ordinary share as well as a special dividend of 0.075p, which it said follows portfolio outperformance in the year to date.
It takes total dividends for the quarter to 1.7p and brings total payments to shareholders to 6.95p over the last 12 months. According to Numis, this is equivalent to a yield of seven per cent and is above the dividend target of 6.5p.
James Robson, the chief investment officer at RM Funds, said the continued outperformance of the trust reflects its ability “to deliver excellent risk adjusted returns from our quality portfolio, with loans diversified across a number of sectors and supported by favourable security packages”.
“We remain disciplined in our approach and well-positioned to take advantage of our pipeline of attractive investment opportunities which offer stable and predictable returns,” he added. “The board expects the portfolio performance to exceed full-year targets.”
RM Secured Direct Lending is currently seeking to raise £10m through the issue of new ordinary shares. The issue is expected to close on 7 November and the proceeds will be used to pay down debt on its revolving credit facility.
The London-listed fund has 53 investments across 13 sectors, with private debt representing 96 per cent of the portfolio.
Its ordinary shares are currently trading at 99.5p, a 1.5 per cent premium to the net asset value of 98.05p at 30 September.