Agreement for additional long term debt

RNS Number : 6338A

Scottish American Investment Co PLC

02 June 2021

 

The Scottish American Investment Company P.L.C. (SAIN)

Agreement of principal terms for additional long-term debt

Legal Entity Identifier: 549300NF03XVC5IFB447

The Scottish American Investment Company Trust P.L.C. ('SAINTS') announces that it has agreed principal terms (subject to legal agreements being finalised) to issue £15 million of long-term private placement debt to augment its existing long-term borrowings. The debt will be secured, unlisted and denominated in sterling.

The purpose of this transaction is to obtain additional long-dated financing at what the Company believes to be attractive pricing levels, with the intention of enhancing shareholder returns and income over the long term.

The principal terms provide for the issue of a single £15 million tranche of private placement notes ('the Notes'). The Notes will have a fixed coupon of 2.23% with a funding date of 25 June 2021 and a repayment date of 25 June 2036. All coupons will be payable semi-annually. It is expected that legal agreements will be finalised shortly.

Pension Insurance Corporation plc has agreed to purchase the Notes.

Peter Moon, Chairman of SAINTS, says:

"I am pleased to say that we have been able to take advantage of current market conditions to secure additional long-term borrowing at a fixed rate of just over 2.2% per annum. 

In arranging this refinancing, the Board has considered the benefit to the Company of having additional long term debt and the likely returns and income which will be produced for shareholders by associated investments over time, as well as the cost of this borrowing."

Baillie Gifford & Co Limited

Company Secretaries

2 June 2021

Regulated Information Classification: Additional regulated information required to be

disclosed under the laws of a Member State.

-ENDS-

 

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