Edinburgh Investment Trust PLC - invests primarily in UK securities - Says its repayment of GBP100 million 7.75% debenture on September 30 is likely to result in uplift to net asset value.
Back in September of last year, the company issued 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. Refinancing of GBP100 million has been arranged to replace the maturing debt.
"Investors should note that the weighted average interest rate, which was negotiated in September 2021, on this new debt of 2.42% is significantly lower than the cost were the same borrowings to be arranged today. This in turn has an impact on the fair value of this debt when it goes on to the company's balance sheet. The lower fair value of the debt is, all other things being equal, likely to result in an uplift in the daily fair value net asset value for September 29, 2022 and thereafter," Edinburgh Investment Trust says.
Current stock price: 540.27 pence, down 2.1% on Wednesday
12-month change: down 11%
By Tom Budszus; tombudszus@alliancenews.com
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Edinburgh Investment Trust PLC (EDIN)