JPMorgan American shakes up gearing – JPMorgan American Investment Trust has received funds from the sale of $65 million fixed-rate 11 year unsecured notes, which will pay a fixed annualised coupon of 2.55%. The notes mature on 27 February 2031 and pay interest semi-annually. In terms of seniority, they rank alongside the company’s existing revolving credit facility.
The company has cancelled its £25m revolving credit facility maturing in April 2020. It has also exercised an option to extend the £40m floating rate revolving credit facility maturing in August 2022 by another £40m. This amount has been drawn in US dollars.
JPMorgan American operates with a strategic gearing level of 10% and within a range of 5% net cash to 20% geared (in normal market conditions). Following the receipt of the proceeds of the private placement, the trust’s tactical gearing level will move to 10%, plus or minus 2%.
JAM : JPMorgan American shakes up gearing