Fixed Rate Borrowing

RNS Number : 5068N

Bankers Investment Trust PLC

18 May 2015

 



HENDERSON INVESTMENT FUNDS LIMITED  

THE BANKERS INVESTMENT TRUST PLC

18 May 2015

THE BANKERS INVESTMENT TRUST PLC (" the Company")

Fixed Rate Borrowing

The Board of the Company announces that it has agreed to issue £50m fixed rate 20 year unsecured private placement notes (the "Notes") at an annualised coupon of 3.68%.

This transaction will obtain fixed rate long dated Sterling denominated financing at a pricing that the Company considers attractive and is expected to enhance long term investment performance. Additionally, the issue anticipates the due repayment of the Company's £10m 10.5% Debenture Stock on 31 October 2016.

The funding date is expected to be 27 May 2015 and the Notes are due to be repaid on 27 May 2035. The interest payment dates will be 27 May and 27 November.

The Notes will be unsecured which gives the Company increased flexibility to manage its borrowings in the future.  

There has been no change in the Company's policy on gearing, as set out on pages 4 & 24 of the 2014 Annual Report. Total fixed rate borrowing, including the Notes, will increase from £25m to £75m following completion of this transaction.

The weighted average interest payable on the Company's fixed rate borrowings will decrease from 9% to 5.4% as at the date of funding and will further decrease to 4.7% following the due repayment of the 10.5% Debenture Stock in October 2016.

Enquiries:

The Bankers Investment Trust PLC                                                           Tel: [phone]

Richard Killingbeck - Chairman

Susan Inglis - Senior Independent Director

Henderson Global Investors                                                                                                              

James de Sausmarez - Director, Head of Investment Trusts                  Tel: [phone]                                                    

Alex Crooke - Fund Manager                                                                     Tel: [phone]

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.

 

END

 

 

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