Tender Offer

Tender offer to purchase up to 20 per cent. of the ordinary shares in issue of the Company will not be implemented

As previously announced in connection with the proposals to amend the Company's investment objective and to move the management of the Company's assets to BlackRock, the Board stated that it intended to implement a Tender Offer for up to 20 per cent. of the Shares in issue (excluding Shares held in treasury) at a 2% discount to cum income NAV (debt at fair value) less costs and expenses, as part of its strategy to improve liquidity in your Company's Shares.  At the general meeting of your Company held on 26 February 2015, Shareholders gave their approval to amend the investment objective and policy and gave the Board the authority to implement the Tender Offer.

It is pleasing to note that the Company’s discount has narrowed significantly, from around 7 per cent. at 26 February 2015 to 2.7 per cent. based on the NAV as at 17 July.  The Board has consulted a number of the Company’s major shareholders and has concluded that, given the current narrow discount and the desire amongst shareholders for liquidity, it is not in the interests of shareholders as a whole to implement the tender offer.  The Board has thus decided not to pursue the tender offer.

The Board remains resolutely committed to ensuring that the Company’s shares trade as close as possible to their underlying NAV on a consistent basis and, where necessary, will take appropriate action to address any supply/demand imbalance through on-market share buybacks. In addition the Board will be seeking authority for future tender offers at a General Meeting in September and will look to renew this annually.  The intention would be for any future tender offers to be implemented on similar terms as previously communicated, but there will be no firm tender date.  Implementation of any tender offer will remain subject to the discretion of the Board. The Board will monitor the Company’s discount to NAV and determine whether a tender offer is in the best interests of Shareholders as a whole as well given the market conditions at the time.

James Long, Chairman, commented:“We have been delighted with the response and continued support from shareholders. Our ambition has always been to see the shares trade close to their underlying NAV. Today’s decision reflects the good progress we have made but the Board is determined to ensure that is sustained. By seeking broader tender authority, in addition to the share buyback powers we have been using, we believe that we will have the tools necessary to achieve our objective.”

20 July 2015

Enquiries:

BlackRock Investment Management (UK) Limited
Mark Johnson – 020 7743 2300
Sarah Beynsberger – 020 7743 2639

Cenkos Securities plc
Sapna Shah – 020 7397 1922
Oliver Packard – 020 7397 1918