Refinancing

RNS Number : 8637V

Value and Income Trust plc

05 December 2019

 

Value and Income Trust PLC (the "Company")  

New £22 million loan

The Company announces that it has arranged a seven year secured term loan of £22 million at a fixed interest rate of 3.1% per annum (3.3% per annum after all expenses) on £20.9 million and at a floating rate of Libor plus 2.35% on the balance of £1.1 million. The net proceeds will be held on deposit until 31 March 2021 to refinance the Company's £15 million 11% First Mortgage Debenture Stock 2021 which expires on that date and to support the acquisition of further UK properties and equities in accordance with the Company's investment policy.

The net effect of this refinancing will be a total net cost to VIT's income account of 1.35 pence per share from now until 31 March 2021 and a prospective net benefit of 2.90 pence per share per annum from 1 April 2021.

Under the Company's Articles of Association, shareholders will vote in 2024 on the future direction of the Company, including an opportunity for anyone who wishes to realise their investment in full, at Net Asset Value less costs, by 31 March 2027.

For Value and Income Trust PLC

Maven Capital Partners UK LLP, Secretary

5 December 2019

 

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