(Alliance News) - JPMorgan American Investment Trust PLC on Thursday said it has raised USD65 million through the issue of convertible notes and extended its existing revolving credit facility by GBP40 million to total GBP80 million.
The investment trust has issued 11-year unsecured notes at a fixed annualised coupon of 2.55%. The notes mature on February 27, 2031.
JPMorgan American said it has issued the notes to take advantage of current market conditions which offer an "attractive rate" for long-term gearing. The trust has additionally cancelled its GBP25 million revolving credit facility maturing in April.
Commenting on the private placement, Chair Kevin Carter said: "The ability to borrow money for investment is a key differentiating feature of investment trusts. The long-term fixed rate borrowings negotiated by us offer an attractive source of debt for the company at rates that we expect will look highly competitive over the term of the notes."
Shares in the investment trust closed at 462.50 pence each in London on Thursday, down 4.5%.
By Tapan Panchal; tapanpanchal@alliancenews.com
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JPMorgan American (JAM)