JPMorgan Claverhouse fixes debt until 2045 – The Board of JPMorgan Claverhouse has announced that it has agreed to issue GBP30m fixed rate 25 year unsecured notes at an annualised coupon of 3.22% – nothing surprising there.
However, the funding date is expected to be 30th March 2020, the date of the maturity of the 7% debenture 30th March 2020. So JPMorgan Claverhouse has moved to tie up replacement funding for its existing debenture more than two years ahead of the date it is due to mature.
The new Notes are due to be repaid on 30th March 2045, 25 years after they have been funded.
The Board says that it has agreed now to issue the Notes at a future date in order to take advantage of current market conditions. This has enabled a reduction in the JPMorgan Claverhouse’s future cost of debt. The Notes will be unsecured which, they say, gives the company increased flexibility to manage its borrowings in the future.
There has been no change in the Investment Managers’ permitted gearing range, as previously set by the Board, of 5% cash to 20% geared.
JCH : JPMorgan Claverhouse fixes debt until 2045