Chelverton UK Dividend (SDV) has published a prospectus in relation to a placing for new 2031 ZDP shares along with recommended proposals for the reconstruction and winding-up of SDV 2025 ZDP Plc and a placing programme for its ordinary shares.
SDV is proposing to issue up to 15m new zero-dividend preference shares in 2031 ZDPCo that will consist of a rollover offer to holders of zero-dividend preference shares in its existing 2025 ZDPCo and, to the extent that less than 15m 2031 ZDP shares are elected under the rollover, a placing of 2031 ZDP shares to other investors. 2031 ZDPCo is a recently incorporated wholly-owned subsidiary of the company and will issue 2031 ZDP shares at an issue price of 100 pence per 2031 ZDP share.
There will also be a placing programme for up to 8m SDV ordinary shares and a placing programme by 2031 ZDPCo of up to 3m further 2031 ZDP shares.
The 2031 ZDP shares will have a life of 5.75 years and will have a final capital entitlement of 151.63 pence per 2031 ZDP share on 31 January 2031, equivalent to a gross redemption yield of 7.50 per cent with an initial cover of 2.0 times.
