CHICAGO--(BUSINESS WIRE)--RiverNorth Marketplace Lending Corporation (the “Fund”) (NYSE: RSF) announced the declaration of monthly distributions of $0.18 per common share for the months of April, May and June 2020, payable on the dates noted below. In accordance with the level distribution policy, the rate has been set equal to 10% of the Fund’s common shares’ net asset value (NAV) as of the last business day of the Fund’s fiscal year, June 28, 2019, $21.45. Based on the Fund’s current NAV per share of $18.88 (as of market close March 31, 2020), the distributions represent an annualized distribution rate of 11.44%. Based on the Fund’s current market price per share of $16.16 the annualized market price distribution rate is 13.37%.
The following dates apply to the distributions declared:
Ex Date |
Record Date |
Payable Date |
Per Share |
April 15, 2020 |
April 16, 2020 |
April 30, 2020 |
$0.18 |
May 14, 2020 |
May 15, 2020 |
May 29, 2020 |
$0.18 |
June 15, 2020 |
June 16, 2020 |
June 30, 2020 |
$0.18 |
Common stockholders have the option of reinvesting these distributions in additional common shares through the Fund’s automatic dividend reinvestment plan. In the event the Fund’s common shares are trading at a discount to the Fund’s NAV, dividends will be acquired through open-market purchases. In the event the Fund’s common shares are trading at a premium to the Fund’s NAV, newly issued common shares will be delivered based on the net asset value per common share. If electing to receive cash, stockholders should contact DST Systems, Inc.
About RiverNorth
RiverNorth Capital Management, LLC is an investment management firm founded in 2000. With $4.6 billion1 in assets under management as of February 29, 2020, RiverNorth specializes in opportunistic investment strategies in niche markets where the potential to exploit inefficiencies is greatest. RiverNorth is an institutional investment manager to registered funds, private funds and separately managed accounts.
This data is for information only and should not be construed as an official tax form, nor should it be considered tax or investment advice. RiverNorth is not a tax advisor and investors should consult a tax professional for guidance regarding their specific tax situation. When preparing your tax return, please refer to your Form 1099-DIV and consult your legal or tax advisor.
The Fund is classified as non-diversified, which means the Fund may invest a larger percentage of its assets in the securities of a smaller number of issuers than a diversified fund. Investment in securities of a limited number of issuers exposes the Fund to greater market risk and potential losses than if its assets were diversified among the securities of a greater number of issuers.
If a borrower of a marketplace loan is unable to make its payments on a loan, the Fund may be greatly limited in its ability to recover any outstanding principal and interest under such loan, as (among other reasons) the Fund may not have direct recourse against the borrower or may otherwise be limited in its ability to directly enforce its rights under the loan, whether through the borrower or the platform through which such loan was originated, the loan may be unsecured or under-collateralized, and/or it may be impracticable to commence a legal proceeding against the defaulting borrower.
The marketplace lending instruments in which the Fund may invest will not typically be guaranteed or insured by any third-party and will not typically be backed by any governmental authority. Prospective borrowers supply a variety of information regarding the purpose of the loan, income, occupation and employment status (as applicable) to the lending platforms. As a general matter, platforms do not verify the majority of this information, which may be incomplete, inaccurate, false or misleading. Prospective borrowers may misrepresent any of the information they provide to the platforms, including their intentions for the use of the loan proceeds. Marketplace lending instruments are generally not rated by the nationally recognized statistical rating organizations (“NRSROs”). Such unrated instruments may be comparable in quality to securities falling into any of the ratings categories used by such NRSROs. Accordingly, certain of the Fund’s unrated investments could constitute a highly risky and speculative investment, similar to an investment in “junk” bonds. At any given time, the Fund’s portfolio may be substantially illiquid and subject to increased credit and default risk. As a result of the foregoing and other risks described in the Fund’s prospectus, an investment in the Fund is considered to be highly speculative. The marketplace lending instruments in which the Fund may invest may have varying degrees of credit risk and the Fund will not be restricted by any borrower credit criteria or credit risk limitation. There can be no assurance that payments due on underlying marketplace loans will be made.
The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The Fund’s prospectus and most recent periodic reports contain this and other important information about the investment company, and may be obtained by visiting rivernorth.com/literature or by calling 844.569.4750. Read the Prospectus carefully before investing.
The default history for marketplace lending is limited and future defaults may be higher than historical defaults.
1 Firm AUM reflects Managed Assets, which includes assets attributable to leverage.
Not FDIC Insured | May Lose Value | No Bank Guarantee
ALPS Distributors, Inc. is the FINRA Member Firm
RiverNorth® is a registered trademark of RiverNorth Capital Management, LLC.
©2000-2020 RiverNorth Capital Management, LLC. All rights reserved.
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