Premier Miton Global Result of ZDP Issue and Company Update
November 30 2020 - 7:11AM
UK Regulatory
TIDMPMGR TIDMPMGZ TIDMPGIZ
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 GBP14.22 million of New
ZDP Shares. This is below the size of the maturing ZDP Share issue of GBP30.25
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 GBP1.31 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 GBP0.71 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)
END
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