Issue of Unsecured Notes
THE EDINBURGH INVESTMENT TRUST PLC
LEI: 549300HV0VXCRONER808
30 September 2021
Issue of £120 million of unsecured Notes
The Board of the Company announces that it has agreed to issue £120m of long-term, fixed rate, senior, unsecured privately placed notes ("the Notes") as follows:
· £35m 2.26% Notes maturing in 2037 settling on 29 September 2022
· £35m 2.49% Notes maturing in 2047 settling on 29 September 2022
· £20m 2.53% Notes maturing in 2051 settling on 7 October 2021
· £30m 2.53% Notes maturing in 2057 settling on 29 September 2022
Three tranches, totalling £100m, will settle on 29th September 2022. The proceeds of these Notes will be used to repay the Company's £100m 7.75% debenture, which matures in exactly a year's time on 30 September 2022. A fourth tranche of £20m is new debt and will settle on 7 October 2021. The weighted average cost of the Notes from 1 October 2022 will be 2.44%. The Company also has a £25m bank revolving credit facility which is currently undrawn.
There is no change to the Company's gearing policy. The Company is committed to the strategic use of borrowings with the aim of enhancing long-term returns to shareholders over time. The level of net gearing* on 31 August 2021 was 8.2% of net assets.
Glen Suarez, Chairman of The Edinburgh Investment Trust, said:
"We are delighted to have arranged attractively priced long-term debt to replace the existing debenture next year and to expand the amount of long-term debt available. A key differentiating feature of investment trusts is their ability to borrow to enhance long-term shareholder returns. This new debt, at a much lower cost than that of the debenture, will help us achieve this goal."
James de Uphaugh, portfolio manager of the Company, commented:
"The additional £20m of debt comes at an opportune time when we have several strong investment ideas competing for positions in the portfolio. We expect to put this capital to work progressively in the months ahead."
Centrus Financial Advisors Limited acted as the arranger of the issue of the Notes.
* Net gearing is defined as the amount of net borrowings invested, i.e. borrowings less cash and cash equivalents (including investments in money market funds).
Enquiries
Edinburgh Investment Trust plc
Glen Suarez (Chairman) via Montfort below
Majedie Asset Management
James Mowat +44 20 7618 3900
Centrus Financial Advisors Limited
Robert St John +44 20 3846 5676
PraxisIFM Fund Services (UK) Limited (Company Secretary)
Brian Smith +44 20 4513 9260
Montfort Communications
Nick Bastin +44 7931 500066
Shireen Farhana +44 7757 299250
Miles McKechnie +44 7788 546279
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