Debt Facility

RNS Number : 5336L

Woodford Patient Capital Trust PLC

06 September 2019

 

6 September 2019

Woodford Patient Capital Trust plc

LEI: 2138008X94M7OVE73I77

Debt Facility

Woodford Patient Capital Trust plc ("WPCT" or the "Company") has a borrowing facility for up to £150 million (the "Facility") and is permitted under its investment policy to borrow up to 20 per cent. of net asset value at the time of borrowing.

The Company's borrowings as at 4 September 2019 were £113.7 million. While the absolute level of borrowings has fallen since the last update on 29 July 2019, the gearing position has increased marginally to 17.1 per cent. of net asset value as a result of the recent reduction in the Company's net asset value. 

The Company's existing Facility contains provisions that limit borrowings to an amount based on the value of both the quoted and unquoted holdings (the "Borrowing Base"). In the event that valuation changes in the quoted and/or unquoted assets in the portfolio result in the amount drawn under the Facility exceeding the Borrowing Base, the Company is required to reduce borrowings as is necessary to bring the amount drawn under the Facility to a level within the Borrowing Base.

The Company has agreed with its lender greater flexibility around certain obligations relating to the Borrowing Base for a period of time while the Company pursues the disposal of certain unquoted assets. WPCT has agreed to make no further investments during this time without the prior consent of the lender (such consent already provided in relation to certain existing commitments). WPCT has agreed a revised interest rate with the lender of LIBOR + 1.5 per cent.   

The Board is continuing to monitor the level of gearing against the Borrowing Base and as previously announced, WPCT will seek to reduce borrowings over time as realisations are achieved.

This announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.

Enquiries:

FTI Consulting

Ed Berry / Tom Blackwell                              0203 727 1046 / 1051

 

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