BlackRock Smaller Companies Trust plc
Fixed rate loan
BlackRock Smaller Companies Trust plc (the âCompanyâ) has agreed to issue Â£ 25 million of senior unsecured fixed rate private placement notes (the âNotesâ) at an annualized coupon of 2.47% with an end date of 25 years. The financing date of the tickets is September 16, 2021 and tickets must be refunded on September 16, 2046.
The net proceeds from the issuance of the Notes by the Company will be used to repay existing debt and to participate in investment opportunities as they arise.
The Company considers that obtaining such financing denominated in pounds sterling on an unsecured basis at this price point and with a term of 25 years is very attractive. In addition, the issuance of the Notes has the advantage of balancing the maturity profile of the Company’s liabilities.
In addition to the Notes, the Company has put in place a range of loans and facilities to ensure a balance between longer term and short term maturities and between fixed and variable interest rates. The fixed rate financing now consists of the Company’s existing Â£ 15 million debenture, which matures in July 2022, Â£ 25 million of senior unsecured fixed rate private placement notes issued in May 2017 at a coupon of 2.74%, Â£ 20 million fixed rate senior unsecured private placement notes issued in December 2019 at a coupon of 2.41%, and the new Bonds due 2046 as described above. The shorter term variable rate funding consists of a three-year Â£ 35million revolving credit facility and an uncommitted Â£ 10million overdraft facility.
It is the intention of the Board that the indebtedness does not exceed 15% of the net assets of the Company when the loans concerned are drawn down. Under normal operating conditions, indebtedness is expected to be within a range of 0% to 15% of net assets. The Company’s net indebtedness currently stands at 6.9% of net assets.
Ms. S Beynsberger
for and on behalf of BlackRock Investment Management (UK) Limited
Phone. : 0207 743 2639
September 8, 2021
This notice is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy securities and does not constitute an offer, solicitation or sale of securities in any jurisdiction in which such an offer, solicitation or sale would be illegal. This notice is not intended for distribution or broadcast in or in Switzerland, Japan Where United States of America (or to persons in the United States), or in any other jurisdiction in which offers or sales of securities would be prohibited by applicable law. The securities have not been and will not be registered under the US Securities Act of 1933, as amended (the “Act“) and may not be offered or sold in United States the lack of registration or an applicable exemption from the registration requirements of the Act.