Fixed Rate Note Borrowing
28 October 2015
Dunedin Income Growth Investment Trust PLC
Fixed rate note borrowing
Dunedin Income Growth Investment Trust PLC (the "Company") has agreed to issue £30m of 30 year Senior Secured Fixed Rate notes at a coupon of 3.99%, subject to final documentation being entered into. The purpose of this transaction is to obtain fixed rate long dated Sterling denominated financing at a price that the Company considers attractive. The Company continues to believe that sensible use of modest financial gearing, whilst amplifying market movements in the short term, will enhance returns of both capital and income to shareholders over the longer term.
The funding date is expected to be 8 December 2015 with interest payable semi-annually in arrears. The principal repayment date will be 8 December 2045. The proceeds will be used for general corporate purposes, including a prefinancing of the 77/8% Debenture Stock 2019, nominal value £28.6 million due in 2019.
There has been no change to the Company's policy on gearing as set out on page 3 (and referred to in the Chairman's statement on pages 6 and 7) of the Company's annual report for the year ended 31 January 2015. The Company is not seeking to materially increase equity gearing as a result of the issue, and will instead, until the repayment of the existing debenture, invest a similar amount to the value of the 2019 debenture into a portfolio of fixed interest securities with a similar duration.
The notes will rank pari passu in right of payment with all current and future senior secured indebtedness of the Company.
For further information please contact:
William Hemmings
Aberdeen Fund Managers Limited
Telephone: 020 7463 6000
William Simmonds
J.P. Morgan Cazenove, Corporate Broker
Telephone: 020 7742 4000
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.
This information is provided by RNS
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