REG-M&G Credit Income Investment Trust plc Publication of a Circular and Notice of General Meeting

M&G Credit Income Investment TrustAnnouncement

04/02/2025 07:15

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   M&G Credit Income Investment Trust plc (MGCI)
   Publication of a Circular and Notice of General Meeting

   04-Feb-2025 / 07:00 GMT/BST

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   4 February 2025

   LEI: 549300E9W63X1E5A3N24

    

                     M&G Credit Income Investment Trust plc

                                        

            Publication of a Circular and Notice of General Meeting

                                        

   The Board  of  M&G Credit  Income  Investment Trust  plc  (the  “Company”)
   announces that  it has  today  published a  circular (the  “Circular”)  to
   convene a general meeting (the “General Meeting”) to allow Shareholders to
   consider and, if  thought fit, approve  the allotment of  up to a  further
   31,002,226 Ordinary  Shares (representing  in total  20 per  cent. of  the
   issued Ordinary  Share  capital of  the  Company  on the  basis  that  the
   authorities granted at the 2024  AGM are fully exhausted), with  statutory
   pre-emption rights disapplied (the “Proposals”).

    

   Background to the Proposals

    

   At the 2024 AGM, Shareholders approved  the allotment of up to  14,091,900
   Ordinary Shares  (representing  approximately 10  per  cent. of  the  then
   issued share capital) on a non-pre-emptive basis, such authority to expire
   at the conclusion of the 2025 AGM. Since the 2024 AGM, the Ordinary Shares
   have traded at an average premium to the prevailing NAV per Ordinary Share
   of 1.0 per  cent. and  the Company has  issued over  9.6 million  Ordinary
   Shares, comprising issuance from treasury  and new issuance, raising  over
   £9.3 million of capital.

    

   There has been high and sustained  demand for Ordinary Shares from a  wide
   range of investors, including an increasing number of retail investors. As
   a result, as at the Latest Practicable Date, the Directors have  authority
   to allot up to 4,415,368  additional Ordinary Shares on a  non-pre-emptive
   basis which represents 2.9  per cent. of the  issued share capital of  the
   Company. If the current  rate of issuance were  to continue, the 2024  AGM
   Allotment Authority would be  expected to be fully  utilised some time  in
   advance of  the  2025 AGM,  where  the  renewal of  such  authority  would
   typically be sought.

    

   The Resolutions are being put forward for the primary purpose of  ensuring
   that the Company can continue to  meet ongoing demand for Ordinary  Shares
   from investors pursuant to  the operation of  its "zero discount"  policy.
   This policy is designed to ensure that the Ordinary Shares trade close  to
   NAV in normal market  conditions through a  combination of Ordinary  Share
   buybacks and  the issue  of new  Ordinary Shares,  or resale  of  Ordinary
   Shares held in treasury, where demand exceeds supply.

    

   General Allotment Authorities

    

   The Board is seeking approval from the Shareholders:

     • to allot up to  a further 15,501,113 Ordinary  Shares, in addition  to
       those  already  authorised  by   the  2024  AGM  Allotment   Authority
       (representing approximately 10 per cent.  of the issued share  capital
       of the Company  calculated on the  basis that the  2024 AGM  Allotment
       Authority has been fully utilised), for the period up until the end of
       the 2025 AGM, with statutory pre-emption rights disapplied; and
     • to allot up to  a further 15,501,113 Ordinary  Shares, in addition  to
       those already authorised by the  2024 AGM Allotment Authority and  the
       authority described above (representing approximately 10 per cent.  of
       the issued share capital of the  Company calculated on the basis  that
       the 2024 AGM  Allotment Authority  has been fully  utilised), for  the
       period up until the  end of the 2025  AGM, with statutory  pre-emption
       rights disapplied.

    

   Any Ordinary  Shares would  be issued  at a  price of  not less  than  the
   prevailing NAV  per Ordinary  Share together  with a  premium intended  to
   cover the costs and expenses of the issue of Ordinary Shares.

    

   Given the nature of  the Company's strategy, the  Board believes that  the
   Investment Manager will be  able to deploy  any additional capital  raised
   pursuant to the General Allotment  Authorities within a period that  would
   not result in any material dilution in returns for existing Shareholders.

    

   As at the date of  the Circular, the Company does  not hold any shares  in
   treasury.

    

   Benefits of the Proposals

    

   The  Board  believes  that  the  Proposals,  once  implemented,  have  the
   following benefits for Shareholders:

     • they will enable the  Board to manage  actively its existing  Ordinary
       Share  price  premium  to  NAV,  thus  enabling  compliance  with  the
       Company's “zero discount” policy;
     • continued issuance  will increase  the  NAV, therefore  spreading  the
       Company’s fixed  costs over  a larger  capital base  and reducing  its
       ongoing charges ratio; and
     • they may  enable increased  liquidity in  the Ordinary  Shares in  the
       secondary market.

    

   General Meeting

    

   The formal notice convening the General Meeting, to be held at the offices
   of M&G Alternatives  Investment Management Limited,  10 Fenchurch  Avenue,
   London EC3M 5AG at 9:30 a.m. on 27  February 2025, is set out at Part  III
   of the Circular. The Notice of  General Meeting includes the full text  of
   the Resolutions. 

    

   Expected Timetable

    

   Latest time  and date  for receipt  of hard  copy
   forms of proxy  or electronic proxy  appointments 9.30 a.m. on 25 February
   for the General Meeting                                               2025

    
   General Meeting                                   9.30 a.m. on 27 February
                                                                         2025
    
   Publication of the results of the General Meeting
                                                             27 February 2025
    

   All times are  UK times.  Each of  the times  and dates  in this  expected
   timetable (other than in relation to the General Meeting) may be  extended
   or brought forward. Any changes to the expected timetable will be notified
   to the market by the Company via an RIS announcement.

    

   Terms used and not  defined in this announcement  shall have the  meanings
   given to them in the Circular.

    

   A copy  of  the  Circular  has been  submitted  to  the  National  Storage
   Mechanism   and   will   shortly   be   available   for   inspection   at:
    1 https://data.fca.org.uk/#/nsm/nationalstoragemechanism.  The   Circular
   will    also     be     available    on     the     Company's     website:
    2 http://www.mandg.co.uk/creditincomeinvestmenttrust.

    

   Neither the NSM website nor the  Company's website nor the content of  any
   website accessible  from  hyperlinks  on  those  websites  (or  any  other
   website) is (or is deemed to be) incorporated into, or forms (or is deemed
   to form) part of this announcement. 

    

   Enquiries:

    

   M&G Credit Income Investment Trust plc               0203 757 1912
   MUFG Corporate Governance Limited, Company Secretary

                                                         

    
   Winterflood Investment Trusts                        0203 100 0000
   Neil Morgan
                                                         
    

     

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00BFYYL325, GB00BFYYT831
   Category Code:  NOG
   TIDM:           MGCI
   LEI Code:       549300E9W63X1E5A3N24
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   374453
   EQS News ID:    2080259


    
   End of Announcement EQS News Service

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