Alliance Trust : ATST

Alliance Trust (headed by Katherine Garrett-Cox pictured) has secured £100m of fixed rate financing through an unsecured private placement note.  The notes have a 15 year life (31 July 2014 to 31 July 2029) and pay a coupon of 4.28%. The cash raised is to be used to retire £100m of the ATST’s existing debt (currently £380m – all provided through short term financing arrangements) so that ATST’s current level of borrowing will remain unchanged.  The weighted average interest rate, payable on all of ATST’s facilities, will increase from 1.61% to 2.26% from 31 July 2014 when the funding comes into place. The notes have been issued to obtain long dated Sterling denominated financing at a pricing level ATST considers to be attractive.

Leave a Reply

Your email address will not be published. Required fields are marked *