Centrus advises Alliance Trust on £60m Private Placement

Centrus advises Alliance Trust on £60m Private Placement

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.

Robert St John, Managing Director at Centrus commented

“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.”


Fore more information abou this transaction, please contact Robert St John. For any Investor Relations queries, please contact Maria Goroh.

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