REG - Scot.Mort Inv Tst - Scottish Mortgage PLC raises US$400m of borrowings
20/01/2022 08:05
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RNS Number : 0196Z Scottish Mortgage Inv Tst PLC 20 January 2022
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
Legal Entity Identifier: 213800G37DCS3Q9IJM38
Scottish Mortgage Investment Trust PLC raises further US$ 400 million of
long-term borrowings
Scottish Mortgage Investment Trust PLC announces that it has raised a further
US$ 400 million (c£294 million) in long-term, fixed rate, senior, unsecured
private placement notes, denominated in US Dollars. This transaction has
provided the Company with further long-term financing at very attractive
rates.
As Scottish Mortgage's assets have grown, the Board has increased the absolute
level of the borrowings for the Company in order to maintain what it believes
to be the appropriate level of gearing of the portfolio. In line with the
gearing policy and guidance provided in the Company's Annual Report, the Board
remains committed to the strategic use of borrowings for the Company in this
way, with the aim of enhancing returns to shareholders over time, in line with
Scottish Mortgage's distinctive investment philosophy and disciplined
long-term approach.
The new private placement agreement provides for total additional borrowings
of US$ 400 million, through the issuance of three notes: one 30-year note for
US$ 175 million with a fixed coupon of 2.99%, one 35-year note for US$ 110
million with a fixed coupon of 3.04% and a 40-year note for US$ 115 million
with a fixed coupon of 3.09%. All coupons will be payable semi annually. The
funding date for all three tranches was 19 January 2022.
Once again, Banco Santander S.A. London acted as the placement agent for the
transaction.
Fiona McBain, Chair of Scottish Mortgage, says:
"Once again the Company has issued long-term private placement debt at
attractive rates. This is reflective of the enduring strength of Scottish
Mortgage's proposition and should enhance shareholders' returns over the
coming decades. The Board wishes to thank Baillie Gifford, Santander and
others for their diligence and hard work on this."
Stewart Heggie, Investment Specialist for Scottish Mortgage, says:
"At present, competition for capital in the Scottish Mortgage portfolio is
intense. Raising fresh capital at this point will allow us to patiently back
more transformational growth companies, as well as increasing stakes in
companies who are making considerable progress operationally thus expanding
the scale of their opportunities. We possess no competitive advantage in
trying to predict short-term market gyrations. Therefore, no tactical
attempt was made to capture recent market swings."
For further information please contact:
Stewart Heggie, Investment Specialist for Scottish Mortgage Investment Trust 0131 474 5117
PLC
s (mailto:stewart.heggie@bailliegifford.com) tewart.heggie@bailliegifford.com
Baillie Gifford & Co Ltd (mailto:stewart.heggie@bailliegifford.com)
Tom Connor, Managing Director, 001 212 583 4659
U.S. Private Placements Thomas.connor@santander.us (mailto:Thomas.connor@santander.us)
Santander Investment Securities Inc.
Jon Atkins, Four Communications 020 3697 4200
BaillieGifford@fourcommunications.com
(mailto:BaillieGifford@fourcommunications.com)
Baillie Gifford & Co Limited
Company Secretaries
20 January 2022
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