Premier Miton Global Renewables Trust Plc - Result of ZDP Issue and Company Update
PR Newswire
London, November 30
30 November 2020
Premier Miton Global Renewables Trust plc (the "Company")
Result of ZDP Issue and Company Update
On 3 November 2020, PGIT Securities 2020 plc ("PGIT Securities 2020"), a wholly owned subsidiary of the Company, published a circular containing details of a scheme of reconstruction of PGIT Securities 2020 and proposals to offer the holders of Existing ZDP Shares in PGIT Securities 2020 the opportunity to elect to roll their investment into New ZDP Shares in PMGR Securities 2025 plc.
On 23 November the Board of PGIT Securities 2020 announced that valid Elections to participate in the Rollover Option were received in respect of 8,648,877 Existing ZDP Shares. The Rollover Option was accompanied by a placing of New ZDP Shares, and in combination resulted in the issue of £14.22 million of New ZDP Shares. This is below the size of the maturing ZDP Share issue of £30.25 million, the difference being funded by a sale of assets from the portfolio.
The smaller ZDP issue size will result in a lower level of gearing and will therefore, all else being equal, result in lower volatility of the Ordinary Shares' net asset value. Also, as there will be a reduction in the size of the Company's portfolio, its revenue earnings per share and dividend are expected to be lower.
However, the cost of financing being charged to the Ordinary Shares through capital will be reduced. In 2019, the last full financial year in which the Existing ZDP Shares were in issue, the finance cost from the Existing ZDP shares was £1.31 million, equivalent to 7.3 pence per Ordinary Share. By comparison, pro forma finance costs for the 2021 financial year (based on the size of the New ZDP Share issue and its 5.0% annual accrual rate, which compares to the accrual rate of the previous issue of 4.75%) are expected to fall to £0.71 million, or 3.9 pence per Ordinary Share. The smaller size of the ZDP issue will result in an increased level of cover for the ZDP Shares, improving the risk profile for both classes of shares.
In conjunction with the Company's manager, Premier Fund Managers Limited, the directors will carry out a review of the likely revised level of income expected to be generated from the portfolio, and intend to make a further announcement with regards to future dividends early in the new year.
Contact:
Premier Fund Managers Limited
01483 306090
Claire Long (claire.long@premiermiton.com)
James Smith (james.smith@premiermiton.com)
N+1 Singer
020 7496 3000
James Maxwell (james.maxwell@n1singer.com)
Iqra Amin (iqra.amin@n1singer.com)
