CQS New City High Yield Fund Limited : Issue of...

Not for release, publication or distribution in whole or in part, directly or indirectly, in or into, the United States, Australia, Canada, Japan, New Zealand or South Africa or any other jurisdiction where it is unlawful to distribute this announcement or any copy of it.

This announcement is an advertisement and not a prospectus.  This announcement does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any Ordinary Shares in any jurisdiction, including the United States, nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction.  This announcement does not constitute a recommendation regarding any securities.  Any investment decision must be made exclusively on the basis of the information contained in the Prospectus.

Unless the context requires otherwise, words and expressions defined in the prospectus published by the Company on 5 March 2015 (and the supplementary prospectus published by the Company on 3 November 2015) in connection with its placing programme have the same meanings when used in this announcement. 

2 March 2016

CQS NEW CITY HIGH YIELD FUND LIMITED

PROPOSED ISSUE OF NEW ORDINARY SHARES
AND REPURCHASE INTO TREASURY

The Board has issued today 36,177,441 new Ordinary Shares under the Placing Programme to Cantor Fitzgerald at a price of 53.6p per Ordinary Share (the " Issue").  Following Admission, the New Ordinary Shares will be immediately repurchased by the Company, at the same price, to be held in treasury (the "Repurchase").  The Issue and Repurchase are being undertaken to provide the Company with flexibility to raise additional capital in an efficient and cost-effective manner in due course.  The NAV per Ordinary Share currently in issue will not be affected by the Issue and Repurchase.  

Following the Repurchase, the Ordinary Shares held in treasury will be available to be sold out of treasury on a non-pre-emptive basis to meet future market demand.  Ordinary Shares will only be sold out of treasury at a premium to the then prevailing NAV per Ordinary Share.  The net proceeds of any sales of Ordinary Shares out of treasury will be invested in accordance with the Company's investment policy.  

Applications have been made to the FCA for admission of the 36,177,441 new Ordinary Shares to the premium listing segment of the Official List and to trading on the London Stock Exchange's main market for listed securities (''Admission'').  It is expected that Admission will become effective and that unconditional dealings in the New Ordinary Shares will commence at 8.00 a.m. (London time) on 4 March 2016.

Enquiries

For further information please contact:

Cantor Fitzgerald
Sue Inglis	020 7894 8016
New City Investment Managers
Craig Cleland Head of Corporate Development, Investment Trusts	020 7201 5368
R&H Fund Services Limited
Martin Cassels	031 550 3760

Additional Important Notices

This announcement has been issued by and is the sole responsibility of the Company. 

Cantor Fitzgerald, which is authorised and regulated in the United Kingdom by the FCA, is acting exclusively for the Company in connection with the Issue and Repurchase and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Cantor Fitzgerald or for advising any such person in connection with the Issue and Repurchase or related matters.  This does not limit or exclude any responsibilities which Cantor Fitzgerald Europe may have under FSMA or the regulatory regime established thereunder.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: CQS New City High Yield Fund Limited via Globenewswire

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