The Bank of New York Mellon, London branch, provided a new £45 million ($58 million) revolving credit facility to support Keystone Investment Trust’s financial restructuring.
The company intends to redeem all of its outstanding 7.75% debenture stock 2020 and all of the outstanding 6.5% bonds 2023, both on 13 March 2020.
“We are pleased to be able to refinance the company’s debt, which introduces more flexible and lower cost borrowings in place of the legacy instruments. This is a further initiative towards enhancing Keystone’s proposition, following the move to quarterly dividends, the proposed share split, and the Share Buyback announced in December,” said Karen Brade, chairman._x000D_
Under the credit facility covenants, Keystone will ensure that total financial indebtedness will not exceed 20% of its net assets and that its total assets will at all times exceed £150 million.
The company’s existing overdraft facility has been cancelled.
Keystone Investments provide shareholders with long-term growth of capital, mainly from UK investments.
