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M&G Credit Income Investment Trust plc (MGCI)
M&G Credit Income Investment Trust plc: Publication of Prospectus
26-Sep-2018 / 14:08 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
26 September 2018
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY
OR INDIRECTLY, IN OR INTO, THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA,
NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION
WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT. PLEASE SEE THE
IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.
This announcement is an advertisement for the purposes of the Prospectus
Rules of the UK Financial Conduct Authority ("FCA") and not a prospectus.
This announcement does not constitute or form part of, and should not be
construed as, an offer for sale or subscription of, or solicitation of any
offer to subscribe for or to acquire, any ordinary shares in the Company in
any jurisdiction, including in or into the United States, Canada, Australia,
New Zealand, the Republic of South Africa or Japan. Investors should not
subscribe for or purchase any ordinary shares referred to in this
announcement except on the basis of information in the prospectus (the
"Prospectus") published by M&G Credit Income Investment Trust plc (the
"Company") in connection with the proposed admission of its ordinary shares
to the premium listing segment of the Official List of the FCA and to
trading on the main market for listed securities of London Stock Exchange
plc (the "London Stock Exchange"). A copy of the Prospectus will shortly be
available for inspection from the Company's registered office and on its
website (www.mandg.co.uk/CreditIncomeInvestmentTrust [1]).
LEI: 549300E9W63X1E5A3N24
M&G Credit Income Investment Trust plc
Publication of a prospectus and intention to IPO
M&G Credit Income Investment Trust plc (the "Company") announces the
publication of a prospectus (the "Prospectus") in connection with an initial
placing, offer for subscription and intermediaries offer (the "Initial
Issue") of ordinary shares of one penny each in the capital of the Company
(the "Ordinary Shares"). The Company is targeting an issue of in excess of
250 million Ordinary Shares at 100 pence per Ordinary Share (the "Issue
Price") to raise gross proceeds in excess of GBP250 million. The minimum size
of the Initial Issue in GBP100 million (before expenses).
The Company has appointed M&G Alternatives Investment Management Limited
(the "Investment Manager" or "M&G") to manage the Company's portfolio (the
"Portfolio") with effect from admission. The Investment Manager is one of
the longest established asset managers in Europe and has particular
expertise in fixed income, with c.GBP188 billion under management as at 30
June 2018.
The Company aims to provide regular and attractive income with low asset
value volatility by investing in a diversified Portfolio of public and
private credit opportunities. Over the longer term, it is expected that the
Company will be mainly invested in private debt instruments and that the
Portfolio will typically consist of 100+ holdings, with a minimum of 50
holdings. The Company will target an annualised dividend yield of LIBOR plus
2.5% (on the Issue Price) in respect of the Company's first financial period
to 31 December 2019 while the net proceeds of the Initial Issue are being
deployed. The Company will target an annualised dividend yield of LIBOR plus
4% (on the opening Net Asset Value per Ordinary Share) in respect of each
financial year thereafter.*
The Prudential Assurance Company Limited intends to subscribe for the lower
of (i) 80,000,000 Ordinary Shares and (ii) 25% of the Ordinary Shares to be
issued pursuant to the Initial Issue. The Directors believe that this
proposed investment strongly aligns the interests of the M&G with
shareholders.
William Nicoll, Co-Head of Alternative Credit, M&G Investments, says: "The
great financial crisis ten years ago has significantly changed Europe's
financing landscape. Due to regulatory and other pressures, banks are no
longer as dominant in some financing markets and new sources of private
capital are now available to British businesses. By lending to businesses,
projects and institutions, the Company has been designed with the aim of
generating a regular and attractive level of income to investors through a
diverse range of credit opportunities, most of which are sourced via our
extensive in-house private credit teams."
David Simpson, Chair of the Company, says: "M&G is one of the most
experienced and established managers in the private credit arena with a
history of investing in these markets for over 20 years. We are excited to
be able to offer exposure to this increasingly interesting and influential
asset class and to provide non-institutional investors with access to M&G's
expertise in private credit markets for the first time. The private credit
markets can provide investors with assets that have strong covenants, lower
volatility compared to corporate bonds and, in some cases, there is a
premium when investing in assets with reduced liquidity. Many of these
private credit assets are suited to the closed-ended structure."
Applications will be made to the UK Listing Authority and to the London
Stock Exchange for all of the Ordinary Shares issued pursuant to the Initial
Issue to be admitted to the premium segment of the Official List and to
trading on the premium segment of the London Stock Exchange's main market
("Admission"). It is expected that Admission will become effective, and that
dealings in the Ordinary Shares issued pursuant to the Initial Issue will
commence, at 8.00 a.m. on 14 November 2018.
The Prospectus also establishes a placing programme for the issue of up to
400 million Shares (which may be Ordinary Shares or C Shares) (the "Placing
Programme"). The Placing Programme is flexible and may have a number of
closing dates in order to provide the Company with the ability to issue
Shares over a period of time. The Placing Programme is intended to satisfy
market demand for Shares and to raise further money after the Initial Issue
to increase the size of the Company and invest in accordance with the
Company's investment policy. The Placing Programme will open on 15 November
and will close on 23 September 2019 (or any earlier date on which it is
fully subscribed, or otherwise at the discretion of the Directors).
The value of investments will fluctuate, which will cause share prices to
fall as well as rise and you may not get back the original amount you
invested. There is no guarantee that the Company's objectives will be
achieved. The Company may be exposed to the possibility that a debtor will
not meet their repayment obligations. Changes in interest rates may
adversely affect the market value of some of the Company's investments.
Loans may be prepaid by issuers at short notice, as a result it may be
difficult for the Company to locate and reinvest capital at an attractive
price or at all, which may affect the Company adversely. As Shares trade via
the secondary market, trading volumes may reduce, or Shares may trade at a
discount to their respective net asset value, due to a variety of factors,
such as market conditions, liquidity concerns or fund performance.
Shareholders may also be unable to realise their investment at quoted market
prices or at all. This is not an exhaustive list, and prospective investors
should ensure they understand the risk profile of the Shares.
The Prospectus is available to view at
www.mandg.co.uk/CreditIncomeInvestmentTrust [1] and the National Storage
Mechanism of the FCA at www.morningstar.co.uk/uk/nsm [2]. Copies of the
Prospectus will also be available from the Company's registered office at
Beaufort House, 51 New North Road, Exeter, EX4 4EP.
Winterflood Securities Limited is acting as sole sponsor, financial adviser,
bookrunner and Intermediaries Offer Adviser.
Expected Timetable
2018
Publication of Prospectus and 26 September
Initial Placing, Offer for
Subscription and Intermediaries
Offer open
Latest time and date for 1.00 p.m. on 7 November
applications under the Offer for
Subscription and from the
Intermediaries in respect of the
Intermediaries Offer
Latest time and date for receipt of 2.00 p.m. on 8 November
commitments under the Initial
Placing
Announcement of the results of the 8.00 a.m. on 9 November
Initial Issue
Initial Admission and dealings in 8.00 a.m. on 14 November
the Ordinary Shares issued pursuant
to the Initial Issue commence
Crediting of CREST stock accounts 14 November
in respect of the Ordinary Shares
issued pursuant to the Initial
Issue
Where applicable, definitive share week commencing 19 November
certificates despatched in respect 2018 (or as soon as
of the Ordinary Shares possible thereafter)
Terms used in this announcement shall, unless the context otherwise
requires, bear the meanings given to them in the Prospectus.
For further information please contact:
Winterflood Securities Limited 020 3100 0000
Darren Willis
(MORE TO FOLLOW) Dow Jones Newswires
September 26, 2018 08:14 ET (12:14 GMT)
