The £60m Chelverton Small Companies Dividend trust has announced plans to issue new shares with the goal of more than doubling its assets under management.
The trust, which was launched in 1999, hopes to raise as much as £75m in new ordinary shares, and to issue some £30m of new zero dividend preference (ZDP) shares on a term of 7.3 years and with a gross redemption yield of 4%. With the vehicle's ZDP shares due for final repayment on 8 January, the board of the trust had been considering options for a refinancing of the company. "It is an appropriate time to increase the size of the company and to raise additional capital," the board said. It is proposing an issue of C-shares through a placing, as well as an issue and placing of new ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
