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15 Jun 2022 09:25
Troy Income & Growth Trust plc
To: RNS
From: Troy Income & Growth Trust plc
LEI: 213800HLNMQ1R6VBLU75
Date: 15 June 2022
Loan Facility
The Board is pleased to announce that a three-year revolving loan facility of £15 million has been negotiated with The Royal Bank of Scotland International Limited.
The Company has not had a gearing facility since April 2021. Having reviewed the situation, the Board and Managers concluded that a new facility should be instituted. The intention is for gearing to be used at a fairly low level on an ongoing basis, and from time to time more materially (up to around 10%) on a tactical basis. The Managers' have a proven, conservative, investment style and it is the Board's view that adding modest gearing to the Company is appropriate, enabling efficient management of the Company's balance sheet and the enhancement of total returns over time. The ability to gear is one of the most significant advantages and differentiators of investment trusts over open-ended funds.
Under the terms of the facility, the Company has the option to increase the level of the commitment from £15 million to £20 million at any time, subject to the bank's credit approval, thus avoiding the expense of undrawn commitment fees on this additional £5 million.
All enquiries
Juniper Partners Limited (Company Secretary)Tel: 0131 378 0500
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