Centrus advises Alliance Trust on £60m Private Placement

Transaction Overview

Centrus is pleased to announce that Alliance Trust PLC – a FTSE 250 Investment Trust with gross assets as at end October 2018 of approximately £2.85bn – has successfully completed a long-term financing in the private placement market. Centrus advised on a £60m financing comprising three separate tranches of £20m each at maturities of 15, 25 and 35 years.

As a result of this financing, the long-term borrowing cost of Alliance Trust has been reduced from 4.3% to 3.7%. The proceeds of the private placement have been used to repay £60m of the company’s existing £127m of floating rate bank debt, such that the company’s current drawn borrowings will remain unchanged after this financing at an amount of £245.45m.

Alliance Trust is listed on the London Stock Exchange and headquartered in Dundee. Alliance Trust’s aim is to be a core holding for investors seeking increasing value over the long term. The equity portfolio’s target is to outperform the MSCI All Country World Index (ACWI) by 2% per year after costs over rolling three-year periods.

“We are delighted that Alliance Trust which is a very high quality borrower, attracted significant demand from a range of institutional investors enabling the company to price its most recent long-term financing at very competitive levels. This was achieved against a backdrop of considerable economic and political uncertainty and at a time of increased volatility and spread widening in the sterling public bond markets.”

Robert St John, Managing Director – Centrus

For more information, please contact Robertstjohn@centrusadvisors.com

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