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)