REG - Panther Securities - Movement in Swap position

Panther SecuritiesAnnouncement

04/10/2022 07:00

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RNS Number : 6300B  Panther Securities PLC  04 October 2022

4 October 2022

Panther Securities PLC

(the "Company")

Movement in Swap position

 

Panther Securities PLC announces that the Company has seen a material non-cash
movement in its swap position since 31 August 2022.  As at 30 June 2022, the
unaudited combined swap liability position was £3.9 million and as announced
on 2 September 2022 the unaudited combined liability as at 31 August 2022 had
fallen to £0.4 million. As at 30 September 2022, the unaudited combined swap
position moved to become an asset of £7.4 million.

As previously announced, the Company has two financial derivatives which
comprise the current swap liability.  The first is at a fixed rate of 2.01%
on £25 million with circa nine years to run.  The second is at a fixed rate
of 5.06% (dropping to 3.4% on 1 September 2023 for the remainder of its term)
on £35 million with circa 16 years to run.

The combined asset under the financial derivatives, which is a non-cash asset,
has fluctuated significantly since they were first entered into (mainly due to
their long dated nature and large swings in interest rate expectations) and
the Directors believe that this will continue to be the case until their
maturity dates. However, given the current market expectation for rising
rates, which has changed significantly in a short period, the value of these
instruments is benefiting from this market outlook.

The two swap financial instruments protect the Company from the cost of rising
interest rates on £60 million of bank loans (being the original purpose they
were entered into).  Accordingly, the Company will not be affected in any way
by any interest rate rises for at least the next nine years (apart from any
potential changes to the banks margin requirement) on its current drawn
facility.

 

For further information:

Panther Securities
plc:
Tel: 01707 667 300

Andrew Perloff / Simon Peters

Allenby Capital Limited (Nomad and Joint
Broker)                                 Tel:
020 3328 5656

David Worlidge/ Alex Brearley

 

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