Issue of Debt

RNS Number : 9724Q

Law Debenture Corp PLC

02 November 2021

 

The Law Debenture Corporation p.l.c.

8^th Floor

100 Bishopsgate

London

EC2N 4AG

2 November 2021

Issuance of Fixed Rate Notes

The Law Debenture Corporation p.l.c. (the "Corporation") has today agreed to issue £20m  2.54% Series A Senior Secured Notes ("Series A Notes") and £30m 2.53% Series B Senior Secured Notes ("Series B Notes") (together the "Notes").

Given the continued growth in the Corporation's net asset value, the Corporation's Board believes that, in the current interest rate environment, it is desirable to obtain fixed-rate, long-dated, sterling-denominated financing at an attractive pricing level. Over the longer-term, the Corporation's  record of outperformance versus its benchmark has been achieved, in part, through the opportunistic but measured use of gearing.

The proceeds from the issue of the Notes will be used to repay short-term borrowings, for further investment and general corporate purposes.
 
The funding date is today, 2 November 2021, with interest payable semi-annually. The principal repayment dates for the Series A Notes and the Series B Notes will be 2 November 2041 and 2 November 2050, respectively. Total structural borrowing (which following completion of this transaction will comprise the Notes in addition to (1) the £40m 6.125% guaranteed secured bonds due 2034 issued by Law Debenture Finance p.l.c. in 1999 and guaranteed by the Corporation and (2) the £75m 3.77% Senior Secured Notes due 25 September 2045 issued by the Corporation) will increase from £115m to £165m.

The weighted average interest payable on the Corporation's structural borrowings will decrease from 4.59% to 3.97% as at funding.

There has been no change in the Corporation's gearing policy, with effective gearing (defined as the ratio of net debt to consolidated net assets) typically employed in a range of 10% net cash to 20% gearing. 

Law Debenture Corporate Services Limited

Corporate Secretary

Contact:  

Tulchan Communications   

Simon Pilkington, Deborah Roney

[e-mail]

[phone]

 

END

 

 

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