Placing and offer for subscription

RNS Number : 2913E

Acorn Income Fund Ld

09 May 2013

 



THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL OR TO U.S. PERSONS. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE INCLUDING IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA.

ACORN INCOME FUND LIMITED

PLACING AND OFFER FOR SUBSCRIPTION

Further to the announcement of 24 April 2013, Acorn Income Fund Limited (the "Company") is pleased to announce that it has published a prospectus regarding a placing and offer for subscription to raise up to approximately £30 million.

The Company will post the prospectus to the Company's shareholders and also make the prospectus available on the following website - http://www.premierfunds.co.uk/library/trusts/info/acorn_prospectus.pdf

- as soon as practicable.

Principal Terms

·      The Company is making available up to 7.0 million New Ordinary Shares and up to approximately 9.6 million New ZDP Shares under a placing and offer for subscription.

·      The New Ordinary Shares will be priced at the NAV per Ordinary Share prevailing on the Calculation Date, which is expected to be 22 May 2013. The latest published NAV per Ordinary Share is 286.81p as at 30 April 2013, which compares to the current mid-market price per Ordinary Share of 304.00p.

·      The New ZDP Shares will be priced at 115.25p, which would generate a gross redemption yield of 5.0% per annum in the event that the New ZDP Shares are issued as expected on 29 May 2013 and the Final Capital Entitlement of 138.0p was met on 31 January 2017. The latest published NAV per ZDP Share is 108.94p as at 30 April 2013, which compares to the current mid-market price per ZDP Share of 116.75p.

·      The New Ordinary Shares and New ZDP Shares will rank pari passu with the Existing Ordinary Shares and Existing ZDP Shares respectively in all respects.  For the avoidance of doubt the New Ordinary Shares will not be entitled to receive any dividends declared, made or paid on the Ordinary Shares by reference to a record date prior to the allotment of the New Ordinary Shares.

Institutional investors wishing to consider a participation in the placing should contact Numis Securities Limited, the Company's corporate broker.

The Offer for Subscription is available, subject to its terms and conditions, to individual Shareholders and potential investors.

Further Information

Nigel Sidebottom

Head of Closed End Funds

Premier Fund Managers Limited

Tel: [phone]

Anson Fund Managers Limited

Secretary

Tel: [phone]

Numis Securities Limited

Nathan Brown, Corporate Broking

David Luck, Sales

Tel: [phone]

Expected Timetable

Each of the times and dates is subject to change. References to a time of day are to London time. Any changes to the timetable will be notified by publication of a notice through a RIS.

	2013
Offer for Subscription opens	8 May
Latest time and date for receipt of Application Forms under the Offer for Subscription	11.00 a.m. on 23 May
Latest time and date for receipt of commitments under the placing	11.00 a.m. on 23 May
Results of placing and Offer for Subscription announced	23 May
Admission and dealings in the New Shares commence	29 May

Important Notices

A copy of the Prospectus will shortly be submitted to the National Storage Mechanism and will shortly be available for inspection at www.Hemscott.com/nsm.do.

Unless otherwise defined, capitalised words and phrases in this announcement shall have the meaning given to them in the Prospectus.

This announcement is for information purposes only and does not constitute an invitation to subscribe for or otherwise acquire or dispose of securities in the Company in any jurisdiction. The information contained in this announcement is for background purposes, is subject to updating and amendment, and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. This announcement does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase, any investments nor shall it (or the fact of its distribution) form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares in the Company should be made solely on the basis of the information contained in the prospectus to be issued by the Company. This document does not constitute a recommendation regarding the securities of the Company.

This announcement has been issued by and is the sole responsibility of the Company. No representation or warranty, express or implied, is or will be made to, or in relation to, and no responsibility or liability is or will be accepted by Numis Securities Limited ("Numis") as to or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

Numis is acting for the Company as sponsor, corporate broker, financial adviser in relation to the proposed issues of New Shares. Numis is authorised and regulated by the Financial Conduct Authority. Numis is not acting for anyone else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for providing advice in relation to the proposed issues or any other matter referred to herein. To the fullest extent permitted by law recipients agree that Numis shall not have any liability (direct or indirect) for or in connection with this announcement or any matters arising out of or in connection herewith. Numis has not authorised the contents of, or any part of, this document.

The New Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or under the applicable state securities laws of the United States, and accordingly, subject to certain exceptions, may not be offered or sold directly or indirectly in or into the United States, or to or for the benefit of any U.S. person (within the meaning of Regulation S under the Securities Act). In addition, the Company has not been and will not be registered under the United States Investment Company Act of 1940, as amended.

The distribution of this announcement and the prospectus in certain jurisdictions may be restricted by law. No action has been taken by the Company or Numis that would permit an offering of any New Shares or possession or distribution of this announcement or any other offering or publicity material relating to such New Shares in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required by the Company and Numis to inform themselves about, and to observe, such restrictions.

9 May 2013

E&OE - in transmission

 

END

 

 

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