Woodford Patient Capital wins concessions from lender – Woodford Patient Capital has a borrowing facility for up to GBP150 million (the “Facility”) and is permitted under its investment policy to borrow up to 20 per cent. of net asset value at the time of borrowing.
Borrowings as at 4 September 2019 were GBP113.7 million. While the absolute level of borrowings has fallen since the last update on 29 July 2019, the gearing position has increased marginally to 17.1 per cent. of net asset value as a result of the recent reduction in the net asset value.
If the company breaches borrowing limits impose by its lender, it must put the situation right by cutting its debt.
Woodford Patient Capital’s lender, Northern Trust, has agreed to give it greater flexibility for a period of time while Woodford Patient Capital tries to sell certain unquoted assets. WPCT has agreed to make no further investments during this time without the prior consent of the lender (such consent already provided in relation to certain existing commitments).
WPCT has also agreed a revised interest rate with the lender of LIBOR + 1.5 per cent.
The board continues to monitor the level of gearing and, as previously announced, will seek to reduce borrowings over time as sales are achieved.
WPCT : Woodford Patient Capital wins concessions from lender
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