(Alliance News) - Edinburgh Investment Trust PLC on Thursday said it has agreed to issue GBP120 million of long-term, fixed rate, senior, unsecured privately placed notes.
The FTSE 250-listed investment company said it will issue GBP35 million 2.26% notes due 2037, GBP35 million 2.49% notes due 2047, GBP20 million 2.53% notes due 2051, and GBP30 million 2.53% notes due 2057.
The proceeds of these notes will be used to repay the company's GBP100 million 7.75% debenture, which matures in exactly a year's time on Thursday. A tranche of GBP20 million is new debt and will settle on October 7.
"We are delighted to have arranged attractively priced long-term debt to replace the existing debenture next year and to expand the amount of long-term debt available," said Chair Glen Suarez.
"The additional GBP20 million of debt comes at an opportune time when we have several strong investment ideas competing for positions in the portfolio. We expect to put this capital to work progressively in the months ahead," added James de Uphaugh, portfolio manager.
Edinburgh Investment Trust shares were trading 0.5% higher in London on Thursday at 616.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Edinburgh Investment Trust PLC (EDIN)