RiverNorth Marketplace to Go Public

RiverNorth Marketplace Lending, which has a term preferred stock outstanding, has decided to take their closed end interval fund to the public markets

The closed end fund, which invests in loans made in the peer-to-peer marketplace, has been quoted (but not traded) on a daily basis  up to now–and has traded on a ‘direct purchase’ basis.

The fund has had  a minimum investment of $1,000,000 required (which is a aggregate amount of client accounts at the advisor level).

The company has around $232 million in assets–$190 million on a “net asset” basis (on 2/28/2019) as they have a little of $40 million of the term preferred outstanding which they use as leverage.

The term preferred issue is an ‘ok’ issue, but we have not owned it as it holds level 2 and level 3 assets–and our preference is for level 1 (i.e. assets that trade on exchanges) CEF preferred issues.

Of course the fund must hold a 200% asset coverage ratio, which give some safety to any CEF preferred issue.

The term preferred issue can be seen here.

The announcement on the stock exchange listing can be seen here.

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