Issue of Ordinary Shares

RNS Number : 5209U

New City High Yield Fund Limited

25 June 2009

 

This announcement is not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia, Republic of South Africa, Japan or any other jurisdiction in which the same would be unlawful. This announcement is not an offer of securities in the United States, Canada, Australia, Republic of South Africa, Japan or any other jurisdiction in which the same would be unlawful.

25 June 2009

NEW CITY HIGH YIELD FUND LIMITED (THE 'COMPANY')

ISSUE OF ORDINARY SHARES

The board of New City High Yield Fund Limited announces that the Company intends to issue up to 13,936,600 ordinary shares of no par value ('Ordinary Shares') under its block listing facility by means of a placing with institutional and other investors (the 'Placing'). The number of Ordinary Shares to be issued pursuant to the Placing is the maximum allowable without publishing a prospectus under the Prospectus Directive.

The new Ordinary Shares are being issued at a price of 43.75p per share, representing a  premium  of approximately 2.5 per cent. to the net asset value of 42.62p per share (including net income accrued in the current financial year) as at the close of business on 24 June 2009 (being the net asset value most recently calculated by the Company's administrators prior to the issue).  The Ordinary Shares being issued will rank pari passu in all respects with the existing issued Ordinary Shares.

The new Ordinary Shares are being placed by Intelli Stockbrokers with a combination of existing and new investors, with placing commitments forms being accepted before 5.00 p.m. today (or such other date as Intelli Stockbrokers may determine). Any excess demand for new Ordinary Shares in the Placing will be scaled back in such a manner as Intelli Stockbrokers, in its absolute discretion, determines.

As the new Ordinary Shares are being issued at a price which represents a premium to the prevailing net asset value per Ordinary Share (after taking into account the costs incurred by the Company in connection with their issue), their issue is not disadvantageous to existing shareholders.

Enquiries

Chris Whittingslow/Richard Howell	Intelli Stockbrokers	T: 020 7653 6300
Nigel Carter	New City Investment Managers Limited	T: 020 7201 5417

Notes

This announcement is for information purposes only and does not constitute an offer or invitation to acquire or dispose of any securities or investment advice in any jurisdiction.

Intelli Corporate Finance Limited and Intelli Stockbrokers (a trading division of iimia plc) is acting exclusively for the Company and no-one else in connection with the Placing and will not be responsible to anyone other than the Company for providing the protections afforded to their customers or for providing advice in relation to the Placing.

Members of the public are not eligible to take part in the Placing.

 

END

 

 

IOEILFSVRIIEFIA