Scottish American Investment Co PLC Agreement for additional long term debt (6338A)
03 June 2021 - 1:14AM
UK Regulatory
TIDMSAIN
RNS Number : 6338A
Scottish American Investment Co PLC
02 June 2021
The Scottish American Investment Company P.L.C. (SAIN)
Agreement of principal terms for additional long-term debt
Legal Entity Identifier: 549300NF03XVC5IFB447
The Scottish American Investment Company Trust P.L.C. ('SAINTS')
announces that it has agreed principal terms (subject to legal
agreements being finalised) to issue GBP15 million of long-term
private placement debt to augment its existing long-term
borrowings. The debt will be secured, unlisted and denominated in
sterling.
The purpose of this transaction is to obtain additional
long-dated financing at what the Company believes to be attractive
pricing levels, with the intention of enhancing shareholder returns
and income over the long term.
The principal terms provide for the issue of a single GBP15
million tranche of private placement notes ('the Notes'). The Notes
will have a fixed coupon of 2.23% with a funding date of 25 June
2021 and a repayment date of 25 June 2036. All coupons will be
payable semi-annually. It is expected that legal agreements will be
finalised shortly.
Pension Insurance Corporation plc has agreed to purchase the
Notes.
Peter Moon, Chairman of SAINTS, says:
"I am pleased to say that we have been able to take advantage of
current market conditions to secure additional long-term borrowing
at a fixed rate of just over 2.2% per annum.
In arranging this refinancing, the Board has considered the
benefit to the Company of having additional long term debt and the
likely returns and income which will be produced for shareholders
by associated investments over time, as well as the cost of this
borrowing."
Baillie Gifford & Co Limited
Company Secretaries
2 June 2021
Regulated Information Classification: Additional regulated
information required to be
disclosed under the laws of a Member State.
-ENDS-
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