Securities Trust of Scotland PLC New Loan Facility (6046K)

TIDMSTS

RNS Number : 6046K

Securities Trust of Scotland PLC

22 September 2016

Securities Trust of Scotland plc

New Loan Facility

22 September 2016

Further to the announcement on 11 May 2016, the Board of Securities Trust of Scotland plc ("the Company") announces that it has taken advantage of low interest rates by locking into a seven year fixed facility and increasing the structural gearing of the Company from GBP17 million to GBP25 million.

The Company has entered into a two year revolving credit facility for GBP10 million and a multi currency seven year fixed facility for GBP15 million with The Royal Bank of Scotland plc.

The currency split of the seven year fixed facility, and all-in fixed interest rates, are set out below:

 
 Currency   All in Fixed 
             Rate 
---------  ------------- 
 GBP1.5m    2.1408% 
---------  ------------- 
 EUR4.5m    1.4175% 
---------  ------------- 
 $12.75m    3.1925% 
---------  ------------- 
 

The facility, which was drawn down in full today, was used to repay the Company's existing facility agreement of GBP17 million and will increase the Company's gearing position with the intention of increasing income and of improving future investment returns.

Rachel Beagles said: "This is proactive step taken by the Board to use the investment trust structure to enhance income. Since the appointment of Mark Whitehead as portfolio manager, in May 2016, the Board has made a number of enhancements to the Company, including the move to an unconstrained mandate and the limited use of options. The Board believes that this will enhance the total return potential for shareholders."

Enquiries:

Paul Evitt

Telephone - 0131 229 5252

This information is provided by RNS

The company news service from the London Stock Exchange

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September 22, 2016 11:02 ET (15:02 GMT)