AVI Japan Opportunity Trust PLC Debt Facility Amendment Agreement (9319H)
28 March 2020 - 3:34AM
UK Regulatory
TIDMAJOT
RNS Number : 9319H
AVI Japan Opportunity Trust PLC
27 March 2020
27 March 2020
AVI JAPAN OPPORTUNITY TRUST PLC (the "Company")
Debt Facility Amendment Agreement
The Company is pleased to announce that, further to the Debt
Facility announced on 5 April 2019 and the subsequent increase of
the facility as announced on 14 October 2019, it has now entered
into an amendment agreement with Scotiabank Europe plc, increasing
the aggregate commitment under the Facility Agreement from Yen
2.930 billion to Yen 4.330 billion.
In addition to the increase of the aggregate commitment, the
amendment agreement includes an updated minimum increase amount of
350 million Yen, a maturity date of 364 calendar days after the
date of the execution of the Amendment Agreement, as well as an
increase in commitment fees. Interest will be payable under the
facility at a rate equal to LIBOR plus 1.25 per cent. Other than
these amendments the terms of the facility agreement entered into
on 5 April 2019 remain in effect, which are typical for a facility
of this nature, including net asset value and asset coverage
covenants. These terms will be reviewed once markets normalise.
The Company will continue to maintain aggregate borrowings in
the medium term to 10-15% of Net Asset Value. The increased
facility is to prepare the Company for the resumption of normal
market conditions, when further capital raises may take place to
take advantage of compelling opportunities in Japan. These
additional borrowings in excess of the 10-15% level will therefore
be considered to mitigate cash drag in respect of the future
issuance of ordinary shares or to capitalise on near term market
opportunities. However, for illustrative purposes only, should the
additional facility be fully drawn down today, the Company's
gearing is expected to be approximately 31 per cent. of the
Company's net assets, based on total net assets as at 26 March
2020.
For further information please contact:
Joe Bauernfreund, Asset Value Investors
Tel: 020 7659 4800
LEI: 894500IJ5QQD7FPT3J73
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END
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