Lowland Investment Company has agreed to issue GBP30m in senior unsecured fixed rate private placement notes at an annualised coupon of 3.15% with a 20 year bullet maturity. The funding date for the Notes will be 5 January 2017 and the Notes will be due for repayment on 5 January 2037. The semi-annual interest payment dates for the Notes will be 5 July and 5 January.
The net proceeds from the issuance of the Notes will be used for investment and general corporate purposes, including the repayment of short-term bank debt. There has been no change in the Company’s gearing policy.
They say that they consider obtaining such Sterling denominated financing on an unsecured basis at this price level and at a 20 year tenor to be highly attractive. Furthermore, the issuance of the Notes has the advantage of balancing the maturity profile of the Company’s liabilities.
LWI : Lowland issues 20 year debt