Fixed Rate Note Borrowing

RNS Number : 4609I

BMO Global Smaller Companies PLC

08 August 2019

 

BMO Global Smaller Companies PLC

LEI: 2138008RRULYQP8VP386

FIXED RATE NOTE BORROWING

BMO Global Smaller Companies Plc (the "Company") announces the issue of £35 million of fixed-rate 20-year unsecured private placement notes at a coupon of 2.26%.

Ahead of the maturing of the Company's 3.5% Convertible Unsecured Loan Stock ("CULS") on 31 July 2019, the Board had been considering the options in relation to implementing its gearing policy. This transaction locks-in long-term fixed-rate funding at an attractive cost for the Company.

The proceeds of the financing will be used to reinstate the fund's level of gearing following the maturity of the CULS and for general corporate purposes. The Company also has a multi -currency revolving credit facility which runs to September 2019, and negotiations for the extension and re-sizing of this facility are well underway. Further announcements in relation to this will follow in due course. There has been no change in the Company's policy on gearing.

Stifel Nicolaus Europe Limited acted as sole placement agent for the transaction.

For further information please contact:

Peter Ewins: 020 7011 5324  

BMO Investment Business Limited

8 August 2019

 

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