News Column

F&C Global Smaller Companies To Raise GBP40 Million From Loan Notes

June 25, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - F&C Global Smaller Companies PLC Wednesday said it intends to raise up to GBP40 million through a placing, subscription and open offer of 3.5% convertible unsecured loan stock, proceeds it said it will use to make investments in line with its investment policy.

Back in April, the company said that it was exploring a number of gearing options, including the possibility of an issue of convertible unsecured loan stock, ahead of the December 2014 maturity date of its GBP10 million in 11.5% debenture stock.

The investment trust said Wednesday it will issue up to GBP40 million in nominal value of convertible unsecured loan stock at 100 pence per nominal unit. The interest rate will be fixed at 3.5% per annum, paid semi-annually with the first interest period ending January 31, 2015.

From that date, holders also will be able to convert the loan stock in ordinary shares at a premium of 15% of net asset value per share.

As part of the open offer, existing shareholders will be able to subscribe to 0.78 loan stock unit for each share held.

Shares in the trust were down 0.7% at 859.50 pence Wednesday afternoon.

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Source: Alliance News

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