Issue of Debt

RNS Number : 2586A

Law Debenture Corp PLC

25 September 2015

 



THE LAW DEBENTURE CORPORATION p.l.c.

Fifth Floor

100 Wood Street

London

EC2V 7EX

25 September 2015

Fixed rate note borrowing

The Law Debenture Corporation p.l.c. (the "Company") has today agreed to issue £75million fixed rate 30-year secured private placement notes at an annualised coupon of 3.77% (the "Notes").

The Company's board believes that, in the current bond and interest rate environment, it is desirable to obtain fixed rate, long dated sterling denominated financing at a pricing level that is attractive and, over the longer term, should help to enhance shareholder value as equity returns are delivered that should exceed the carrying cost of the Notes.

The proceeds from the issue of the Notes will be used to repay short term borrowings (an uncommitted, drawn down facility of c.£30 million), for equity investment and general corporate purposes.

The funding date is today 25 September 2015 with interest payable semi-annually. The principal repayment date will be 25 September 2045. Total structural borrowing (which following completion of this transaction will comprise the Notes in addition to the £40 million 6.125% guaranteed secured bonds due 2034 issued by Law Debenture Finance p.l.c. in 1999 and guaranteed by the Company), will increase from £40m to £115m, representing an effective gearing level (based on portfolio valuation as at 31 August 2015) of 13%.

The weighted average interest payable on the Company's structural borrowings will decrease from 6.125% to 4.589% as at the date of funding.

There has been no change in the Company's gearing policy, with effective gearing typically employed in a range of 10% net cash to 20% gearing. 

Law Debenture Corporate Services Limited

Company Secretary

Ian Bowden                 020 7696 5285

The Law Debenture Corporation p.l.c. is registered in England at the above address, company registration number 30397

Disclaimer

The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act. This notice is for information only, does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

 

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