Witan Investment Trust has today agreed to issue a £21m fixed rate 20 year secured private placement note at a coupon of 3.29% and a £54m fixed rate 30 year secured private placement note at a coupon of 3.47%. They say the purpose of this transaction is to obtain fixed rate long dated Sterling denominated financing at a pricing level that the Company considers attractive, and is expected to enhance long term investment performance.
They expect to get the money on 1 June 2015. Interest will be payable semi-annually. The principal repayment dates will be 1st June 2035 and 2045. Total structural borrowing including the notes will increase from £111.4m to £186.4m following completion of this transaction. The issue has taken account of the due repayment date on its £44.6m 8.5% Debenture, which is October 2016, following which the Company’s structural borrowings will be £141.8m. In the near-term, the proceeds will be mainly used to repay short-term borrowings (currently £55m).
The weighted average interest payable on the Company’s structural borrowings will decrease from 7.0% to 5.6% as at the date of funding and will further decrease to 4.6% following the due repayment of the Debenture in October 2016.
WTAN : Witan takes out long-term borrowing