Law Debenture Corp PLC Issue of Debt (2586A)
September 25 2015 - 8:44AM
UK Regulatory
TIDMLWDB
RNS Number : 2586A
Law Debenture Corp PLC
25 September 2015
THE LAW DEBENTURE CORPORATION p.l.c.
Fifth Floor
100 Wood Street
London
EC2V 7EX
25 September 2015
Fixed rate note borrowing
The Law Debenture Corporation p.l.c. (the "Company") has today
agreed to issue GBP75million fixed rate 30-year secured private
placement notes at an annualised coupon of 3.77% (the "Notes").
The Company's board believes that, in the current bond and
interest rate environment, it is desirable to obtain fixed rate,
long dated sterling denominated financing at a pricing level that
is attractive and, over the longer term, should help to enhance
shareholder value as equity returns are delivered that should
exceed the carrying cost of the Notes.
The proceeds from the issue of the Notes will be used to repay
short term borrowings (an uncommitted, drawn down facility of
c.GBP30 million), for equity investment and general corporate
purposes.
The funding date is today 25 September 2015 with interest
payable semi-annually. The principal repayment date will be 25
September 2045. Total structural borrowing (which following
completion of this transaction will comprise the Notes in addition
to the GBP40 million 6.125% guaranteed secured bonds due 2034
issued by Law Debenture Finance p.l.c. in 1999 and guaranteed by
the Company), will increase from GBP40m to GBP115m, representing an
effective gearing level (based on portfolio valuation as at 31
August 2015) of 13%.
The weighted average interest payable on the Company's
structural borrowings will decrease from 6.125% to 4.589% as at the
date of funding.
There has been no change in the Company's gearing policy, with
effective gearing typically employed in a range of 10% net cash to
20% gearing.
Law Debenture Corporate Services Limited
Company Secretary
Ian Bowden 020 7696 5285
The Law Debenture Corporation p.l.c. is registered in England at
the above address, company registration number 30397
Disclaimer
The Notes have not been and will not be registered under the
U.S. Securities Act of 1933, as amended (the "Act") and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the Act.
This notice is for information only, does not constitute an offer
to sell or the solicitation of an offer to buy any security and
shall not constitute an offer, solicitation or sale of any
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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