REG-M&G Credit Income Investment Trust plc Publication of Circular

M&G Credit Income Investment TrustAnnouncement

Wed 07:02

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   M&G Credit Income Investment Trust plc (MGCI)
   Publication of Circular

   02-Jul-2025 / 07:00 GMT/BST

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   THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE,
   PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN  PART,
   IN, INTO OR FROM, THE UNITED STATES OF AMERICA (INCLUDING ITS  TERRITORIES
   AND POSSESSIONS,  ANY STATE  OF  THE UNITED  STATES  AND THE  DISTRICT  OF
   COLUMBIA), AUSTRALIA, CANADA,  JAPAN, NEW ZEALAND,  THE REPUBLIC OF  SOUTH
   AFRICA, IN ANY MEMBER  STATE OF THE  EEA OR IN  ANY OTHER JURISDICTION  IN
   WHICH THE SAME WOULD BE UNLAWFUL.

   This announcement is not an offer to  sell, or a solicitation of an  offer
   to acquire, securities in the United  States or in any other  jurisdiction
   in which the  same would be  unlawful. Neither this  announcement nor  any
   part of it shall form the basis of  or be relied on in connection with  or
   act as an inducement to enter into any contract or commitment whatsoever.

   Legal Entity Identifier: 549300E9W63X1E5A3N24

    

    

    

   2 July 2025

    

    

    

                     M&G Credit Income Investment Trust plc

                                        

     Proposed grant of authority to allot Ordinary Shares under a proposed
           Share Issuance Programme and any future WRAP Retail Offer

                                        

                            Publication of Circular

    

   The Board of  M&G Credit  Income Investment  Trust plc  (the “Company”  or
   “MGCI”) has today published a circular (the “Circular”) to provide details
   of  proposals  to  issue   up  to  150  million   Ordinary  Shares  on   a
   non-pre-emptive basis  by  way  of  a Share  Issuance  Programme  under  a
   prospectus (the “Prospectus”),  which is  expected to be  published on  29
   July 2025, and  any future  WRAP Retail  Offer (the  “Proposals”), and  to
   convene a general meeting of the  Company (the “General Meeting”) to  seek
   Shareholder authority to  issue such  Ordinary Shares and  to do  so on  a
   non-pre-emptive basis.

    

   The Circular  will shortly  be available  for inspection  at the  National
   Storage        Mechanism        which         is        located         at
    1 https://data.fca.org.uk/#/nsm/nationalstoragemechanism   and   on   the
   Company's website at  2 http://www.mandg.com/creditincomeinvestmenttrust.

    

   Background to, and reasons for, the Proposals

    

   Zero Discount Policy

   The Company announced a  Zero Discount Policy on  30 April 2021, which  is
   intended to manage the share price discount or premium to NAV per Ordinary
   Share to seek to  ensure that the Company's  Ordinary Shares should  trade
   close to NAV per Ordinary Share in normal market conditions. Following the
   adoption of the  Zero Discount Policy,  the Company initially  repurchased
   Ordinary Shares  in  light of  the  then prevailing  discount,  with  such
   Ordinary Shares being held  in treasury. By the  end of October 2023,  and
   after taking account of approximately 2.8 million Ordinary Shares that had
   been resold from treasury when the Ordinary Shares traded at a premium for
   part of  2022,  the  Company  held approximately  4.1  million  shares  in
   treasury.

    

   Since then,  the Company’s  Ordinary  Shares have  generally traded  at  a
   premium to NAV per Ordinary Share for an extended period of time, with  an
   average premium of  1.4 per  cent. in the  12-month period  to the  Latest
   Practicable Date  of 30  June 2025.  This high  and sustained  demand  for
   Ordinary Shares from  a wide  range of investors  has led  to the  Company
   selling all remaining  Ordinary Shares  held in treasury  and issuing  new
   Ordinary Shares at a premium to NAV  per Ordinary Share. As at the  Latest
   Practicable Date of 30 June 2025, a total of approximately 36 million  new
   Ordinary Shares had been issued in the previous 12 months.

    

   Requirement for the Prospectus

   The Company may, over a 12-month rolling period, issue new Ordinary Shares
   representing up to 20 per cent. of its issued share capital and apply  for
   those Shares to be  admitted to the  Official List and  to trading on  the
   Main Market without publishing a prospectus.  As a result of the  issuance
   noted above, the Company has only limited further capacity to continue  to
   issue new Ordinary  Shares and your  Board has resolved  that the  Company
   should publish the Prospectus in order for the Share issuance to  continue
   over the  12  months following  the  General Meeting.  The  Prospectus  is
   expected to be published on 29 July 2025.

   The General Meeting is being held to seek authority from Shareholders  for
   the issuance of up  to 150 million Ordinary  Shares pursuant to the  Share
   Issuance Programme under the Prospectus and any future WRAP Retail  Offer.
   If passed, the Resolutions  would grant authority  for the Share  Issuance
   Programme and any  future WRAP  Retail Offer in  addition to,  and not  in
   place of, the General Allotment Authority granted to the Directors at  the
   2025 AGM.  That General  Allotment Authority  additionally authorises  the
   Directors to allot Ordinary Shares, or sell Ordinary Shares from treasury,
   without  regard  to  the  pre-emption  rights  contained  in  the  Act  or
   otherwise, up to an aggregate nominal amount of £342,187.48, equivalent to
   34,218,748 Ordinary Shares.

    

   Benefits of the Proposals

   The Board believes that  the Proposals, together  with the Share  Issuance
   Programme and  any  future WRAP  Retail  Offer, will  have  the  following
   benefits for Shareholders:

     • the ability to continue  to manage the premium  to the prevailing  Net
       Asset Value per Ordinary Share at which the Ordinary Shares may  trade
       through the issue  of new  Ordinary Shares,  thus enabling  compliance
       with the Company's Zero Discount Policy;
     • improved secondary  market  liquidity  for  Shareholders,  making  the
       Ordinary Shares more attractive to a wider range of investors;
     • the  enlargement  of  the  Company's  net  assets,  resulting  in  the
       spreading of  fixed costs  over a  larger capital  base, which  should
       marginally reduce the level of ongoing charges per Ordinary Share; and
     • greater scale, which  should continue  to enhance the  profile of  the
       Company and broaden the Shareholder base.

   The Board is satisfied that the Investment Manager will be able to  deploy
   any additional capital raised pursuant to the Share Issuance Programme  in
   accordance with the Company's Investment Policy.

    

   Share Issuance Programme

   All Ordinary Shares issued pursuant  to the Share Issuance Programme  will
   be issued  at  a minimum  issue  price equal  to  the prevailing  NAV  per
   Ordinary Share  at the  time of  the relevant  allotment together  with  a
   premium intended to cover the costs  of that issuance and also  contribute
   to the costs of publishing the  Prospectus in order to initiate the  Share
   Issuance Programme.

   Further details on the Share Issuance  Programme will be contained in  the
   Prospectus once published.

    

   General Meeting

   The  Proposals  are   conditional  on  the   approval  of  the   Company's
   Shareholders. The Notice of the General Meeting, which will be held at the
   offices of M&G  Alternatives Investment Management  Limited, 10  Fenchurch
   Avenue, London, United Kingdom, EC3M  5AG, is set out  in Part III of  the
   Circular. The Notice  of General  Meeting includes  the full  text of  the
   Resolutions.

    

   Expected Timetable

    

   Posting of Circular for the General Meeting                    2 July 2025
   Latest time and date for receipt of hard copy or      1.00 p.m. on 24 July
   electronic proxy appointments for the General Meeting                 2025
   General Meeting                                       1.00 p.m. on 28 July
                                                                         2025
   Announcement of the results of the General Meeting            28 July 2025
   Expected date of publication of the Prospectus and            29 July 2025
   commencement of the Share Issuance Programme

    

   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.

    

   Capitalised terms used but not defined in this announcement will have  the
   same meaning as set out in the Circular.

    

   For further information please contact:

    

   M&G Credit Income Investment Trust plc
                                                         +44 333 300 1932
   MUFG Corporate Governance Limited (Company Secretary)
                                                          
   Winterflood Securities Limited                        +44 (0)20 3100 0000
   Neil Morgan
                                                                            
   Darren Willis

    

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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.:   394578
   EQS News ID:    2163658


    
   End of Announcement EQS News Service

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