M&g Credit Inc. Regulatory News (MGCI)

28 April 2020

LEI: 549300E9W63X1E5A3N24

M&G Credit Income Investment Trust plc

Dividend Declaration

The Board of M&G Credit Income Investment Trust plc (the "Company") noted in the Company's recent report and accounts its intention to start the quarterly dividends for 2020 at an annual rate of LIBOR plus 2.75%, with a preference to pay them from income and prior capital gains.  The Board has considered this in light of the current market environment and the need to make decisions that are right for the Company's shareholders over the longer term. 

The Company's investment manager has completed a detailed review of each investment.  The Company's interest income has increased during the last few weeks and, whilst its capital value has fallen, the outlook for the portfolio remains strong.  The investment manager has expressed its confidence to the Board that it expects to be able to take advantage of favourable opportunities in the current volatile environment, many of which may be in the quoted debt market.

The Board has therefore determined that it remains appropriate to pay a first quarterly dividend at a rate of LIBOR plus 2.75% per annum, even though this requires a partial distribution from special reserves.  Accordingly the Board is pleased to announce an interim dividend of 0.85 pence per Ordinary Share in respect of the period from 1 January to 31 March 2020. The dividend will be paid on 28 May 2020 to ordinary shareholders on the register on 11 May 2020. The ex-dividend date will be 7 May 2020.

As referred to in Part 7 'Taxation' of the Company's prospectus dated 26 September 2018, the Directors have chosen to apply the 'streaming' regime to part of the dividend payment. Accordingly, of the dividend declared, the Company has designated 0.72 pence per Ordinary Share as an interest distribution and 0.13 pence per Ordinary Share as a dividend to shareholders.

The dividend has been calculated by reference to the Company's opening NAV per Ordinary Share as at 1 January 2020, adjusted for the second interim dividend in respect of the last financial period.   

The Board continues to work closely with the Company's investment manager to ensure the appropriate oversight of the portfolio and investment processes.

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