New City High Yield Fund Ltd : Issue of Equity

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THIS ANNOUNCEMENT (INCLUDING THE INFORMATION CONTAINED IN IT) DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN ANY JURISDICTION.

13 February 2013

NEW CITY HIGH YIELD FUND LIMITED

Issue of Equity

The Board of Directors (the "Board") of New City High Yield Fund Limited (the "Company") is pleased to announce that, on 13 February 2013, the Company has raised approximately £12.5 million before costs through the issue of 19,450,000 ordinary shares of no par value in the capital of the Company (the "New Shares") by way of tap issuance to qualifying investors* through its corporate broker, Cantor Fitzgerald Europe ("Cantor"), (the "Issue").  

The New Shares are being issued at a price of 64.25p per share, representing a premium of approximately 2.73% to the unaudited cum-income net asset value of 62.54p per existing issued ordinary share of no par value in the capital of the Company as at the close of business on 12 February 2013.

The New Shares rank pari passu with the existing issued ordinary shares of no par value in the capital of the Company.  Applications have been made for the New Shares to be admitted (i) to the premium segment of the Official List of the UK Listing Authority, (ii) to trading on the London Stock Exchange's main market for listed securities, (iii) to the Daily Official List of Channel Islands Stock Exchange, LBG and to trading on Channel Islands Stock Exchange, LBG, and dealings in the New Shares are expected to commence on 18 February 2012.

Following the issue of the New Shares, the Company's issued share capital will consist of 239,717,581 ordinary shares of no par value in the capital of the Company, none of which are held in treasury.  Accordingly, with effect from 18 February 2013, the total number of voting rights in the Company will be 239,717,581 and that figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest, in the Company under the Disclosure and Transparency Rules.

Enquiries

Chris Whittingslow / Sue Inglis	Cantor Fitzgerald Europe	T: 020 7894 8276 / 020 7894 8016
Adam Cooke	New City Investment Managers	T: 020 7201 6900
Martin Cassels / Philip Rorke	R&H Fund Services Limited	T: 0131 625 2951/ 0131 625 2953

Important Information

*As defined in section 86(7) of the Financial Services and Markets Act 2000 (as amended).

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

Cantor, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting for New City High Yield Fund Limited and is acting for no-one else in connection with the Issue and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Issue or any other matter referred to herein.  To the fullest extent permitted by law recipients agree that Cantor shall not have any liability (direct or indirect) for or in connection with this announcement or any matters arising out of or in connection with it.

This announcement is for information purposes only and does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase, any investments nor shall it (or the fact of its distribution) form the basis of, or be relied on in connection with, any contract therefor.

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information contained therein.

Source: New City High Yield Fund Ltd via Thomson Reuters ONE

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