Centrus is pleased to announce that The Henderson European Focus Trust (“HEFT”), the UK-listed investment trust managed by Janus Henderson Investors, has successfully raised long-term debt of €35 million.
The financing is divided into the following tranches:
- €25m 1.53% Notes due 2047
- €10m 1.66% Notes due 2052
Centrus supported HEFT in the preparation and marketing of the financing including liaising with a number of investors and other stakeholders, monitoring market conditions, advising the board on the structure of the debt as well as negotiating the terms and conditions of the private placement.
We are delighted to add HEFT to the wide range of investment trusts that Centrus has supported. These include:
The Mercantile Investment Trust – £150m Private Placemen
With support from Centrus, the trust raised £150m of long-term debt, separated into three trances:
- £55m 1.98% Notes due 2041
- £50m 2.05% Notes due 2051
- £45m 1.77% Notes due 2061
Mercantile is one of the very few investment trusts with an explicit credit rating – AA from S&P.
The Edinburgh Investment Trust – £120m Private Placement
EIT raised £120 million on an unsecured basis, and split into four tranches:
- £35m 2.26% Notes due 2037
- £35m 2.49% Notes due 2047
- £20m 2.53% Notes due 2051
- £30m 2.53% Notes due 2057
An unusual feature of this private placement was that settlement of £100m of the proceeds was deferred until Sept 2022 to coincide with the maturity of a £100m listed bond issue.
Scottish Oriental Smaller Companies Trust – £30m Private Placement
Centrus advised the trust on a £30m debt private placement, priced with a fixed coupon of 2.75% for a term of 20 years.
Aberdeen Diversified Income and Growth Trust – Bond Liability Management
Aberdeen Diversified Income and Growth Trust’s (“AIDG”) gross assets amounted to approximately £381 million, as at end 2021.
Centrus advised AIDG on a public bond tender to repurchase up to £45m of its outstanding £60m 6.25% bonds due 2031. A total of £43.9m of bonds were tendered and repurchased by ADIG, leaving approximately £16m of bonds outstanding.
The AIDG board announced that the bond buy back had a number of benefits including reducing leverage, increasing cash flow and increased capital management flexibility.
The Monks Investment Trust – £100m Private Placement
Exceeding Monks’ original fundraising intentions, Centrus raised a total of £100m for the trust, divided into two tranches:
- £60m 1.86% Notes due 2054
- £40m 1.77% Notes due 2045
The Scottish American Investment Company – £80m Private Placement
The transaction comprised two separate tranches of £40m each with maturities of April 2045 and April 2049 and a fixed coupon of 3.12% payable semi-annually.
An unusual feature of this financing was that settlement was deferred for three years until April 2022 to coincide with the maturity of an £80m listed bond issue.
Alliance Trust – £60m Private Placement
Alliance Trust, a FTSE 250 Investment Trust with gross assets, as at end 2021, of approximately £3.7bn, successfully completed a long-term financing in the private placement market.
Centrus arranged a £60m financing divided into three tranches::
- £20m 2.66% Notes due 2033
- £20m 2.94% Notes due 2043
- £20m 2.90% Notes due 2053
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