F&C Global Smaller Companies, as disclosed in its annual results, is considering an issue of loan stock to replace its existing long-term debt. The terms of the proposed issue have been disclosed today – £40m worth of 3.5% convertible unsecured loan stock, the coupon payable semi-annually in January and July (first payment on 31 January 2015), convertible at a 15% premium to the net asset value on the date they are issued and to be repaid at par, if not converted, on 31 July 2019.