Less Ads, More Data, More Tools Register for FREE

Pin to quick picksBtem.l Regulatory News (BTEM)

  • There is currently no data for BTEM

Watchlists are a member only feature

Login to your account

RNS Alerts are a premium feature

Login to your account

myTerminal is a premium feature

Login to your account

Don't have an account? Click here to register.

British Empire Trust - Refinancing of Debenture to Reduce Interest Costs

Mon, 29th Apr 2019 17:39

RNS Number : 4659X
British Empire Trust PLC
29 April 2019



Legal Entity Identifier (LEI): 213800QUODCLWWRVI968


29 April 2019


Refinancing of Debenture to reduce interest costs and enhance capital returns


The Company has today entered into an agreement with Scotiabank Europe PLC for a Japanese Yen4.0 billion revolving credit facility for a period of three years. The facility is equivalent to £27.7 million at current exchange rates.


The facility will initially be drawn down and funds used to repay early the Company's £15m 8 1/8% Debenture stock. The Company has today given notice to debenture stock holders of its intention to repay these borrowings to stock holders on the register on 31 May 2019. The debenture stock was due to mature on 2 July 2023. The total cost of redeeming the debt is £19.9 million including accrued interest to 31 May 2019.


Following this refinancing exercise, the Company's weighted average interest on all borrowings will be reduced to 2.9%, compared with 4.3% currently.


Commenting on the refinancing, British Empire Chairman, Susan Noble said:


"The Company's Board has taken the decision to repay the debenture early in order to achieve a balance of financing sources and maturities. The revolving credit facility introduces some flexibility in managing the Company's gearing, which in recent years has been entirely through long term, fixed rate debt and borrowing in Japanese Yen which provides a natural hedge against exchange rate fluctuations.


While the cost of redemption will initially reduce the Net Asset Value ("NAV") per share by 0.1% (or 0.8 pence per share) with debt at fair value and 0.5% (or 4.2 pence per share) at book value, the refinancing exercise described above is expected to reduce the total annual interest cost by approximately £930,000 (or 0.8 pence per share), based on current short term interest rates for the revolving credit facility. This will potentially marginally enhance both the revenue earnings and capital returns."



Enquiries:          Asset Value Investors Ltd

                          020 7659 4800





The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via a Regulatory Information Service this information is now considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
Date   Source Headline
24th May 20193:17 pmRNSBritish Empire Trust - Change of Name
24th May 20191:40 pmRNSBritish Empire Trust - Net Asset Value(s)
24th May 20197:00 amRNSBritish Empire Trust - Half-year Report
23rd May 20191:32 pmRNSBritish Empire Trust - Net Asset Value(s)
22nd May 20191:04 pmRNSBritish Empire Trust - Net Asset Value(s)

Login to your account

Don't have an account? Click here to register.