Today Witan Investment Trust agreed to issue a £50m fixed rate 32-year secured private placement with a 2.39% coupon. The company confirmed that the purpose of its placement was to obtain fixed rate long dated sterling-denominated financing at a pricing level that the company considers attractive and improve its long term investment performance in the process.
The funding date is expected by the company at 1 October 2019 with interest payments semi-annually. As for the principle repayment date, it will land on 1 October 2051. Overall, the company’s total structural borrowings, including this new note, will increase from £172m to £222m following the transaction, representing 10.9% of the company’s net assets. Over the short term the company expects the proceeds will be used to repay short-term borrowings which currently sit at £81m.