Proposed Issue of Equity & Placing Programme

RNS Number : 9027Q

TwentyFour Income Fund Limited

18 October 2013

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO US PERSONS OR IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND, JAPAN OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.

18 October 2013

TwentyFour Income Fund Limited

(a non-cellular company limited by shares incorporated in the Island of Guernsey under the Companies (Guernsey) Law 2008, as amended, with registered number 56128 and registered as a Registered Closed-ended Collective Investment Scheme with the Guernsey Financial Services Commission)

Proposed issue of equity and Placing Programme update

Proposed issue of equity

The Board of Directors (the "Board") of TwentyFour Income Fund Limited (the "Company") is pleased to announce that the Company is looking to raise between GBP30 million and GBP50 million before costs and expenses through the issue of new ordinary redeemable shares of 1p each in the capital of the Company (the "New Shares") and the admission of the New Shares to the premium listing segment of the Official List of the UK Listing authority (the "Official List") and to trading on the London Stock Exchange plc's main market for listed securities (the "London Stock Exchange") under the Placing Programme (as described in the Company's Prospectus published on 19 February 2013) to qualified investors (1) through its corporate broker, Numis Securities Limited ("Numis"), (the "Issue").

The Issue is expected to close at 2.00 pm (London time) on Thursday 31 October 2013 but may close later, at the absolute discretion of the Company. The Issue price per New Share will be at a minimum of a 2 per cent. premium to the NAV as at 25 October 2013, expected to be published on 28 October 2013. Qualified investors are invited to apply for New Shares by contacting Numis on the contact details below. The decision to allot New Shares to any qualified investor shall be at the absolute discretion of the Company and Numis.

The Company will make a further announcement of the results of the Issue when it has completed.

The Board and the Company's investment manager believe that the Issue is in Shareholders' interests as it will further enlarge the Company and diversify its portfolio. While a tightening of ABS spreads has lowered the purchase yields available for new investments of appropriate quality, and the Issue may therefore result in a modest dilution in prospective returns, it is expected the proceeds of the Issue can be invested on a basis consistent with the Company's dividend target.

Placing Programme update

In the light of the tightening of ABS spreads since the Company's launch in March 2013, which has contributed to the 10.5 per cent. NAV total return per Share over the period but as discussed above has also lowered purchase yields, the Board has reviewed the ongoing parameters of the Placing Programme.

Following this review, the Board announces that with the objective of insulating Shareholders from dilution of potential returns it does not currently intend to approve any material further issues of new shares under the Placing Programme. The Board may approve further issues for the purposes of premium management, but any new shares issued would be priced at a premium to NAV consistent with the Company's dividend target.

For further information, please contact:

Numis Securities Limited:               [phone]
Chris Gook (Sales)
Nathan Brown (Corporate Broking)

TwentyFour Income Fund Limited:   [phone]
John Magrath                             
Alistair Wilson

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

 

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