Fixed Rate Note Borrowing

RNS Number : 9221J

Witan Investment Trust PLC

10 April 2015

 

10 April 2015

WITAN INVESTMENT TRUST plc

Fixed rate note borrowing

Witan Investment Trust plc has today agreed to issue a £21m fixed rate 20 year secured private placement note at a coupon of 3.29% and a £54m fixed rate 30 year secured private placement note at a coupon of 3.47% (the "Notes"). The purpose of this transaction is to obtain fixed rate long dated Sterling denominated financing at a pricing level that the Company considers attractive, and is expected to enhance long term investment performance. There has been no change in the Company's policy on gearing, as set out on pages 12 & 13 of the 2014 Annual Report.

The funding date is expected to be 1st June 2015 with interest payable semi-annually.   The principal repayment dates will be 1st June 2035 and 2045. Total structural borrowing including the Notes will increase from £111.4m to £186.4m following completion of this transaction.  The issue has taken account of the due repayment date on its £44.6m 8.5% Debenture, which is October 2016, following which the Company's structural borrowings will be £141.8m. In the near-term, the proceeds will be mainly used to repay short-term borrowings (currently £55m).

The weighted average interest payable on the Company's structural borrowings will decrease from 7.0% to 5.6% as at the date of funding and will further decrease to 4.6% following the due repayment of the Debenture in October 2016.

J.P. Morgan Cazenove acted as sole placement agent

For further information please contact:

Andrew Bell

Witan Investment Trust plc
Tel: [phone]

William Simmonds

J.P. Morgan Cazenove

020 7742 4000

 

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