Issue of £150 million of unsecured Notes

RNS Number : 6046K

Mercantile Investment Trust(The)PLC

03 September 2021

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

THE MERCANTILE INVESTMENT TRUST PLC

(the 'Company')

Issue of £150 million of unsecured Notes

Legal Entity Identifier: 549300BGX3CJIHLP2H42

The Mercantile Investment Trust plc announces that it has raised an additional £150 million of long-term debt through the issue of three fixed rate, senior unsecured privately placed notes (the "Notes"). The Notes, which will be funded on 8th September 2021, are:

· £55 million maturing in 2041 with a fixed coupon of 1.98%;

· £50 million maturing in 2051 with a fixed coupon of 2.05%; and

· £45 million maturing in 2061 with a fixed coupon of 1.77%.

The net proceeds from the Notes will be used to repay the Company's short-term indebtedness of £80m.  The balance of the proceeds will be available to be invested as and when attractive opportunities arise. The Company's short-term debt facility will remain available providing further investment flexibility.

Angus Gordon Lennox, Chairman, commented:

"Given the increase in the Company's asset base over recent years, the Board is very pleased to have been able to take advantage of current market conditions to re-balance the Company's borrowing levels at attractive rates and over different and longer time periods. This new debt will ensure that there are adequate facilities in place to maintain gearing levels and if the Company's Investment Managers see appropriate investment opportunities to be able to operate more fully across the Company's gearing range."

There has been no change in the Company's permitted gearing range as set by the Board, to limit gearing within the range of 10% net cash to 20% geared. The current level of net gearing is c. 9.6%[1].

Centrus Financial Advisors Limited acted as the arranger of the Note issue.

3rd September 2021

Contacts:  

Alison Vincent JPMorgan Funds Limited	020 7742 4000
Robert St John Centrus Financial Advisors	[e-mail]

About The Mercantile Investment Trust plc

The Mercantile Investment Trust plc ("Mercantile") is one of the largest UK equity investment trusts with a history stretching back more than 130 years. It has a long and successful track record championing quality UK medium-sized and smaller companies. It is managed by JPMorgan Asset Management. As at 31st August 2021 it had total assets of £2.8 billion.

The Company's objective is to achieve long term capital growth through investing in a diversified portfolio of UK medium and smaller companies. Due to its focus on quality stocks outside the FTSE 100, the Company offers a cost-effective way to gain access to the companies that the Investment Managers believe have the greatest potential to become tomorrow's UK market leaders.

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[1]   Represents the amount by which total investments exceed net assets, expressed as a percentage of net assets.

 

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