Shires Income cuts debt costs – Shires Income has entered into a new GBP20 million loan facility agreement with Scotiabank Europe PLC. The new facility is for a three year period to 20 September 2022 and extends the company’s previous GBP20 million loan facility agreement with Scotiabank Europe PLC which was due to mature on 30 October 2020.
Under the terms of the new facility, a GBP10 million fixed rate loan has been drawn down at an all-in interest rate of 1.706% a year. This rate of interest is fixed until the maturity of the facility on 20 September 2022 and the proceeds have been used to repay the company’s previous GBP10 million fixed rate loan which had a higher all-in interest rate of 1.956% a year, with only a modest break cost being incurred on repayment of the existing fixed rate loan.
In addition, GBP9 million has been drawn down on a revolving basis, at an all-in interest rate of 1.62148% a year, with first maturity on 21 October 2019, and the proceeds have been used to repay the company’s previous drawings under the old facility.
Following the drawdowns, the trust’s borrowings are unchanged at GBP19 million.
SHRS : Shires Income cuts debt costs
Click here to subscribe for free equity research on investment trusts, funds and listed companies.