Publication of Prospectus

RNS Number : 7432V

New City High Yield Fund Limited

05 November 2010

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OF AMERICA or any jurisdiction in which the same could be unlawful OR TO US PERSONS.  the information contained herein does not constitute an offer of securities for sale including in australia, canada, japan or the united states of america. 

5 November 2010

new city high yield fund limited

PUBLICATION OF PROSPECTUS

Further to the announcement on 2 November 2010, New City High Yield Fund Limited announces that it has today published its prospectus in connection with a placing of new Ordinary Shares by Canaccord Genuity with institutional investors, private client fund managers and private client brokers and a public offer for subscription of new Ordinary Shares (the "Prospectus").  The Company is seeking to raise between £15.0 million and £25.0 million, before expenses.  The Issue has not been underwritten.

The New Shares will be issued at a price equal to a premium of 2.75 per cent. to the NAV per Ordinary Share calculated as at the close of business on Wednesday, 17 November 2010 (rounded up to the nearest tenth of one pence) or, if higher, a price equal to 90 per cent. of the closing middle market price of an Ordinary Share as at the close of business on that date.  For illustrative purposes only, had the Issue Price been calculated as at the close of business on 3 November 2010, the Issue Price would have been calculated by reference to the NAV per Ordinary Share and would have been 58.1p. 

The Board believes that the benefits of the Issue will be:

·           to further increase the Company's market capitalisation, thereby enabling the Company to attract a wider range of investors which, in turn, should improve the liquidity in the Ordinary Shares; and

·           to reduce the Company's fixed operating costs as a percentage of Shareholders' funds.

In addition, the Issue has been structured so that the costs incurred by the Company in connection with the Issue are borne, through the Issue Price, by the initial holders of the New Shares, thereby avoiding any NAV dilution for existing Shareholders.

Applications have been made to the UK Listing Authority for the New Shares to be admitted to the premium segment of the Official List and to the London Stock Exchange for the New Shares to be admitted to trading on its Main Market.  The New Shares will, on Admission, rank pari passu in all respects with the Existing Shares and will rank in full for all dividends thereafter declared, made or paid on the Ordinary Shares.

The Issue is conditional on, among other things:

·           applications being received for Ordinary Shares with an aggregate value, at the Issue Price, of not less than £15.0 million, before expenses, pursuant to the Issue; and

·           Admission becoming effective by 8.00 a.m. on Tuesday, 23 November 2010 (or such later date as the Company and Canaccord Genuity may agree, being in any event not later than Wednesday, 24 November 2010).

A copy of the Prospectus will be available for inspection at the National Storage Mechanism, which is located at www.hemscott.com/nsm.do.

Expected Timetable

	2010
Record date for participation in the Issue on a priority basis	Monday, 1 November
Placing and Public Offer open	Friday, 5 November
Latest time and date for receipt of Application Forms and payment under the Public Offer	5.00 p.m. on Tuesday, 16 November
Placing closes	5.00 p.m. on Tuesday, 16 November
Calculation of the Issue Price	As at close of business on  Wednesday, 17 November
Issue Price and basis of allocation of New Shares announced through RIS	Thursday, 18 November
Admission, dealings in New Shares commence and CREST accounts credited in respect of New Shares issued in uncertificated form	Tuesday, 23 November
Certificates despatched in respect of New Shares issued in certificated form by	Friday, 3 December

Note: All times and dates in the expected timetable may be adjusted by the Company.  Any changes to the timetable will be notified by publication of a notice through a Regulatory Information Service.

Enquiries

Chris Whittingslow/ Sue Inglis	Canaccord Genuity Limited	020 7050 6528/ 020 7050 6779
Adam Cooke	New City Investment Managers	020 7201 5368

Notes

This announcement has been issued by and is the sole responsibility of New City High Yield Fund Limited.  Defined terms used in this announcement shall have the meanings assigned to them in the Prospectus.

This announcement is for information purposes only and does not purport to be full or complete and any investment decision regarding the Issue should be made only on the basis of the Prospectus. 

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

The Issue and the distribution of this announcement and the Prospectus in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to this announcement or the Prospectus comes should inform themselves about and observe any such restriction.  Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

Canaccord Genuity Limited, which is authorised and regulated in the United Kingdom for the conduct of investment business by the Financial Services Authority, is acting for New City High Yield Fund Limited and no one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than New City High Yield Fund Limited for providing the protections afforded to clients of Canaccord Genuity Limited or for providing advice in relation to the matters referred to in this announcement.

 

END

 

 

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