Fixed rate note borrowing: The Law Debenture Corporation p.l.c. has agreed to issue £75million fixed rate 30-year secured private placement notes at an annualised coupon of 3.77%....

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The Company's board believes that, in the current bond and interest rate environment, it is desirable to obtain fixed rate, long dated sterling denominated financing at a pricing level that is attractive and, over the longer term, should help to enhance shareholder value as equity returns are delivered that should exceed the carrying cost of the Notes.

The proceeds from the issue of the Notes will be used to repay short term borrowings (an uncommitted, drawn down facility of c.£30 million), for equity investment and general corporate purposes.

The funding date is today 25 September 2015 with interest payable semi-annually. The principal repayment date will be 25 September 2045. Total structural borrowing (which following completion of this transaction will comprise the Notes in addition to the £40 million 6.125% guaranteed secured bonds due 2034 issued by Law Debenture Finance p.l.c. in 1999 and guaranteed by the Company), will increase from £40m to £115m, representing an effective gearing level (based on portfolio valuation as at 31 August 2015) of 13%.

The weighted average interest payable on the Company's structural borrowings will decrease from 6.125% to 4.589% as at the date of funding.

There has been no change in the Company's gearing policy, with effective gearing typically employed in a range of 10% net cash to 20% gearing.



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