Scottish Mortgage Inv Tst PLC Scottish Mortgage PLC raises US$400m of borrowings (0196Z)
20 January 2022 - 6:00PM
UK Regulatory
TIDMSMT
RNS Number : 0196Z
Scottish Mortgage Inv Tst PLC
20 January 2022
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
Legal Entity Identifier: 213800G37DCS3Q9IJM38
Scottish Mortgage Investment Trust PLC raises further US$ 400
million of long-term borrowings
Scottish Mortgage Investment Trust PLC announces that it has
raised a further US$ 400 million (cGBP294 million) in long-term,
fixed rate, senior, unsecured private placement notes, denominated
in US Dollars. This transaction has provided the Company with
further long-term financing at very attractive rates.
As Scottish Mortgage's assets have grown, the Board has
increased the absolute level of the borrowings for the Company in
order to maintain what it believes to be the appropriate level of
gearing of the portfolio. In line with the gearing policy and
guidance provided in the Company's Annual Report, the Board remains
committed to the strategic use of borrowings for the Company in
this way, with the aim of enhancing returns to shareholders over
time, in line with Scottish Mortgage's distinctive investment
philosophy and disciplined long-term approach.
The new private placement agreement provides for total
additional borrowings of US$ 400 million, through the issuance of
three notes: one 30-year note for US$ 175 million with a fixed
coupon of 2.99%, one 35-year note for US$ 110 million with a fixed
coupon of 3.04% and a 40-year note for US$ 115 million with a fixed
coupon of 3.09%. All coupons will be payable semi annually. The
funding date for all three tranches was 19 January 2022.
Once again, Banco Santander S.A. London acted as the placement
agent for the transaction.
Fiona McBain, Chair of Scottish Mortgage, says:
"Once again the Company has issued long-term private placement
debt at attractive rates. This is reflective of the enduring
strength of Scottish Mortgage's proposition and should enhance
shareholders' returns over the coming decades. The Board wishes to
thank Baillie Gifford, Santander and others for their diligence and
hard work on this."
Stewart Heggie, Investment Specialist for Scottish Mortgage,
says:
"At present, competition for capital in the Scottish Mortgage
portfolio is intense. Raising fresh capital at this point will
allow us to patiently back more transformational growth companies,
as well as increasing stakes in companies who are making
considerable progress operationally thus expanding the scale of
their opportunities. We possess no competitive advantage in trying
to predict short-term market gyrations. Therefore, no tactical
attempt was made to capture recent market swings."
For further information please contact:
Stewart Heggie, Investment Specialist 0131 474 5117
for Scottish Mortgage Investment s tewart.heggie@bailliegifford.com
Trust PLC
Baillie Gifford & Co Ltd
Tom Connor, Managing Director, 001 212 583 4659
U.S. Private Placements Thomas.connor@santander.us
Santander Investment Securities
Inc.
Jon Atkins, Four Communications 020 3697 4200
BaillieGifford@fourcommunications.com
Baillie Gifford & Co Limited
Company Secretaries
20 January 2022
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