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Scottish Mortgage raises £125m in debt

07 April 2017 07:27

Scottish Mortgage Investment Trust has agreed to raise a total of £125m in long-term, fixed-rate, senior, unsecured private placement notes, denominated in sterling.

The transaction was to obtain long-dated unsecured sterling denominated financing at what the company believes to be attractive pricing levels, with the intention of enhancing shareholder returns over the long term.

The private placement agreement provided for total borrowings of £105m, with a funding date of 6 April 2017.

It comprised the issuance of three notes: one 25-year note for £45m with a fixed coupon of 3.05%, one 27-year note for £30m with a fixed coupon of 3.30% and a 30-year note for £30m with a fixed coupon of 3.12%.

All coupons would be payable semi annually. Funds raised would be used to retire, in part, an existing bank debt facility of $165m, which was to due to mature in early April 2017.

Further, the company has agreed to raise an additional sum of £20m to refinance the company's existing £20m debenture, at the time this matures in 2020. This note would have a fixed coupon of 3.65%, payable semi annually, and a tenor of 24 years.

The private placement agreement formed part of the existing gearing facilities for the company. There would be no change to the overall level of indebtedness of the company as a result of these borrowings.

Story provided by StockMarketWire.com

Related Company: SMT

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