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| Date | 2 Nov 2021 |
| Time | 07:00:02 |
| Category | Capital structure |
| ID | 9724Q |
The Law Debenture Corporation p.l.c.
8th Floor
100 Bishopsgate
London
EC2N 4AG
2 November 2021
Issuance of Fixed Rate Notes
The Law Debenture Corporation p.l.c. (the "Corporation") has today agreed to issue £20m 2.54% Series A Senior Secured Notes ("Series A Notes") and £30m 2.53% Series B Senior Secured Notes ("Series B Notes") (together the "Notes").
Given the continued growth in the Corporation's net asset value, the Corporation's Board believes that, in the current interest rate environment, it is desirable to obtain fixed-rate, long-dated, sterling-denominated financing at an attractive pricing level. Over the longer-term, the Corporation's record of outperformance versus its benchmark has been achieved, in part, through the opportunistic but measured use of gearing.
The proceeds from the issue of the Notes will be used to repay short-term borrowings, for further investment and general corporate purposes.
The funding date is today, 2 November 2021, with interest payable semi-annually. The principal repayment dates for the Series A Notes and the Series B Notes will be 2 November 2041 and 2 November 2050, respectively. Total structural borrowing (which following completion of this transaction will comprise the Notes in addition to (1) the £40m 6.125% guaranteed secured bonds due 2034 issued by Law Debenture Finance p.l.c. in 1999 and guaranteed by the Corporation and (2) the £75m 3.77% Senior Secured Notes due 25 September 2045 issued by the Corporation) will increase from £115m to £165m.
The weighted average interest payable on the Corporation's structural borrowings will decrease from 4.59% to 3.97% as at funding.
There has been no change in the Corporation's gearing policy, with effective gearing (defined as the ratio of net debt to consolidated net assets) typically employed in a range of 10% net cash to 20% gearing.
Law Debenture Corporate Services Limited
Corporate Secretary
Contact:
Tulchan Communications
Simon Pilkington, Deborah Roney
+44 (0)777 193 7173