23 August 2023

The net asset value ("NAV") of Marble Point Loan Financing Limited ("MPLF") as at the close of business on 31 July 2023 is as follows:

PERFORMANCE

·      MPLF's ordinary share estimated NAV total return was 8.73% in July, compared to the total return of the Credit Suisse Leveraged Loan Index of 1.30%.

·      Secondary loan prices advanced in July as declining inflation measures increased broader market expectations for an end of the Federal Reserve's interest rate hiking cycle.   New loan issuance increased marginally yet remains below historical volumes supporting a strong secondary market technical, especially in higher quality credits.  Retail loan funds experienced outflows for the 15th consecutive month, but to the smallest degree since flows tuned negative in April 2022.

·      Quarterly distributions received by MPLF from its portfolio holdings totaled approximately $11.4 million in Q3 compared to $12.4 million in Q1.  Most reinvesting CLOs saw distributions increase marginally from Q1, and Marble Point CLO XXV made its first distribution since closing in Q4 2022.  Three older vintage CLOs experienced cash flow diversion due to failing coverage tests which adversely impacted distributions, however this represented only ~16% of total distributions.  MPLF's portfolio distributions continue to exceed and support dividend and liquidating share class distributions. 

·      CLO equity valuations generally increased during the month in parallel with underlying loan prices and reflecting a better tone in broader credit markets.  Reinvesting CLOs have been also able to build par and excess spread through recent bouts of volatility, improving near term quarterly distribution prospects.  In addition, discount rates for CLO equity securities have compressed with a stronger macro sentiment, supporting valuations.

·      Defaults in the loan market increased in July as two constituents of the Morningstar/LSTA index defaulted during the month.  As at 31 July 2023 MPLF had no exposure to Wawona Packaging or Juice Plus+, the index constituents to default during the month.  The index's lagging 12-month default rate by notional amount increased to 1.75% as at 31 July.

MARKET

·      The CSLLI delivered a 1.30% return in June as loan prices increased amidst better economic headlines and new issuance remained constrained. The average indicative bid price of the CSLLI increased to 94.14% at 31 July from 93.55% at 30 June while the weighted average indicative bid price of MPLF's underlying loans increased to 94.03% at 31 July from 93.54% at 30 June. 

·      July CLO issuance totaled $6.9 billion across 16 new issue CLOs. This represents and increase from June, yet still indicates more patience on the part of CLO issuers as supply focused on transactions with better headline arbitrage and stronger liability execution.  CLO liability levels tightened during the month, particularly in the mezzanine tranches in parallel with the underlying loan price movement. This benefit was partially offset by higher asset prices.

·      Institutional loan volume totaled $18.7 billion in July according to Morningstar/LCD.  While this represents a slight increase from June, the weak deal flow reflects the impact on new leveraged buyouts from continued challenges facing institutional financing markets and year-to-date institutional loan issuance through 31 July remains the lowest figure since 2010. In addition, refinancing activity represented approximately 65% of the year to date issuance figure as organic issuance remains halted.

·      Retail loan funds experienced an outflow of approximately $0.1 billion in July according to J.P. Morgan.  While this represents the 15th consecutive monthly outflow from the market, this was the smallest total since April 2022.  Monthly outflows averaged approximately $4.3 billion from May 2022 through May 2023.

·      Since the end of July the average indicative bid price of the CSLLI has increased by 0.14% to 94.28% (as at 18 August 2023). 

MPLF's July 2023 Monthly Report is available on its website: www.mplflimited.com 

Enquiries:

Marble Point Loan Financing Limited

Investor Relations

T:  +44 (0) 20 7259 1500

E:  ir@mplflimited.com 

Website: www.mplflimited.com 

Corporate Broker:

Stifel Nicolaus Europe Limited

T:  +44 (0) 20 7710 7600

 ⁽¹⁾ NAV figures are provided for informational purposes only and are unaudited, estimated by Marble Point Credit Management LLC ("Marble Point"), the investment manager of MPLF, and subject to adjustment. Marble Point estimates MPLF's NAV on a monthly basis as at the end of each month. Estimates with respect to a date falling on a calendar quarter end are subject to revision when the quarterly NAV is determined. NAV is calculated as the sum of the value of MPLF's investment portfolio, any cash or cash equivalents and other assets less liabilities. NAV is reduced by the amount of a dividend to the extent the ex-dividend date occurs during the period presented.   NAV total return figures shown are estimated, unaudited and subject to adjustment and reflect the net total NAV return, inclusive of dividends, for the periods shown and as from MPLF's admission to the Specialist Fund Segment of the main market of the London Stock Exchange on 13 February 2018, after taking into account applicable listing and offering costs and pre-admission profits and loss. Monthly and cumulative performance figures are non-annualised and such results reflect the deductions of applicable management fees and expenses at the underlying investment levels.

⁽²⁾Figures shown for effective yield are estimated, unaudited, subject to change and based on the analysis of Marble Point Credit Management LLC, the investment manager of MPLF, as at the Closing Date.  The estimated effective yield is provided for illustrative purposes only.  The actual effective yield, as recorded by MPLF or other entity holding the investment may vary over time.

Past performance is not indicative or a guarantee of future performance.

This release contains inside information.

About Marble Point Loan Financing

Marble Point Loan Financing Ltd. (LSE Ticker: MPLF LN (USD); MPLS LN (GBX)) is a Guernsey-domiciled closed-ended investment company. MPLF's investment objective is to generate stable current income and grow net asset value by earning a return on equity in excess of the amount distributed as dividends.

MPLF is invested in a diversified portfolio of US dollar denominated, broadly syndicated floating rate senior secured corporate loans owned via collateralised loan obligations ("CLOs") and related vehicles managed by Marble Point Credit Management LLC.

About Marble Point Credit Management LLC

Marble Point Credit Management LLC ("Marble Point") is a specialist asset manager focused exclusively on leveraged loans.  Marble Point is 100% owned by Investcorp International Holdings Inc. ("IIHI"), which is part of the Investcorp Group of companies. The Investcorp Group effectively operates as a management-controlled group, substantially all whose assets and operations are owned and controlled by Investcorp S.A., a company domiciled in the Cayman Islands.   Investcorp Holdings B.S.C. ("Investcorp") a Bahrain based holding company is the parent company of Investcorp S.A. ("S.A."). Certain of the Investcorp Group's directors and senior executive officers have the ability to indirectly control Investcorp S.A.

IMPORTANT INFORMATION

Marble Point Loan Financing Limited (the "Company") is a closed-ended investment company incorporated in Guernsey with its ordinary shares ("Shares") admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange (ticker: MPLF.LN). The Company is invested in a diversified portfolio of US dollar denominated, broadly syndicated floating rate senior secured corporate loans via CLOs, loan accumulation facilities and other vehicles managed by Marble Point Credit Management LLC ("Marble Point") or its affiliates. Marble Point is an investment adviser registered with the U.S. Securities and Exchange Commission.

This document is provided for informational purposes only and does not constitute an offer to sell any Shares, notes or other securities (collectively, "Securities") issued by the Company or a solicitation of an offer to purchase any such Securities in the United States, Australia, Canada, the Republic of South Africa, Japan or any other jurisdiction. This document may not be relied upon, and should not be used, for the purpose of making any investment decision. This document and the information and views included herein do not constitute investment advice or a recommendation or an offer to enter into any transaction with the Company or any of its affiliates. Any recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of any investment and should consult its own legal counsel and financial, actuarial, accounting, regulatory and tax advisers to evaluate any such investment. This document has been issued by the Company and is the sole responsibility of the Company.

The Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold in the United States to, or for the account or benefit of, U.S. persons unless they are registered under applicable law or exempt from registration. The Company has not been and will not be registered under the U.S. Investment Company Act of 1940, and investors will not be entitled to the benefits of such Act.

The information shown herein is estimated, unaudited, for background purposes only, representative as of the dates specified herein, subject to adjustment and not purported to be full or complete. Nothing herein shall be relied upon as a representation as to the current or future performance or portfolio holdings of the Company or any strategy or investment vehicle. Certain information presented herein has been obtained from third party sources and is believed to be reliable. However, neither the Company nor Marble Point represents that the information contained in this document (including third party information) has been independently verified or is accurate or complete, and it should not be relied upon as such. Index information, if any, has been provided for illustration purposes only. Any such information does not reflect the effect of transaction costs, management fees or other costs which would reduce returns. An investor cannot invest directly in an index.

There is no guarantee that any of the goals, targets or objectives described in this document will be achieved. The investment strategies of the Company may not be suitable for all investors and are not intended to constitute a complete investment program. Neither Marble Point nor the Company makes any representation or warranty (express or implied) with respect to the information contained herein (including, without limitation, information obtained from third parties) and each of them expressly disclaims any and all liability based on or relating to the information contained in, or errors or omissions from, these materials; or based on or relating to the use of these materials; or any other written or oral communications transmitted to the recipient or any of its affiliates or representatives in the course of its evaluation of the information herein.

Any of the views or opinions expressed herein are current views and opinions only and may be subject to change. Statements made herein are as of the date of this document and should not be relied upon as of any subsequent date. All information is current as of the date of this document and is subject to change without notice.

Past performance is not a reliable indicator of current of future results. The value of investments may go down as well as up and investors may not get back any of the amount invested. The value of investments designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currencies. Adverse movements in currency exchange rates can result in a decrease in return and a loss of capital.

A Note on the Use of Indices as Benchmarks. The indices shown have not been selected to represent a benchmark for MPLF's performance, but rather to allow for comparison of MPLF's returns to those of known, recognized and/or similar indices. The Credit Suisse Leveraged Loan Index (CSLLI) tracks the investable universe of the U.S. leveraged loan market. The ICE BofAML US High Yield Index (ICE BAML HYI) tracks the performance of USD-denominated below investment grade corporate bonds publically issued in the U.S. domestic market. The Standard & Poor's 500 Index (S&P 500) tracks the performance of U.S. public equity markets and is based on the market capitalization of 500 large companies having common stock listed on NYSE or NASDAQ. The performance of any index is not an exact representation of any particular investment as you cannot invest directly in an index.

A Note on Forward Looking Statements. This document includes forward-looking statements. Forward-looking statements include all matters that are not historical facts. Actual results may differ materially from any results projected in the forward-looking statements and are subject to risks and uncertainties. Such statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, and other factors that may cause actual results to differ materially from the anticipated results expressed or implied by such forward-looking statements. The Company and Marble Point caution readers not to place undue reliance on such statements. Neither the Company nor Marble Point undertakes, and each specifically disclaims, any obligation or responsibility, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's and/or Marble Point's expectations and estimates.

None of the Company, Marble Point or any of their respective parent or subsidiary undertakings, or the subsidiary undertaking of any such parent undertakings, or any of such person's respective partners, shareholders, directors, members, officers, affiliates, agents, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any information or opinions presented or contained in this document nor shall they accept any responsibility whatsoever for, or make any warranty, express or implied, as to the truth, fullness, accuracy or completeness of the information in this document (or whether any information has been omitted from the document) or any other information relating to the Company, Marble Point or their respective subsidiaries or associated companies, in any form whatsoever, howsoever transmitted or made available or for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith. This shall not affect any liability any such person may have which may not be excluded under applicable law or regulation.