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M&G Credit Income Investment Trust plc: Discount and Premium Management

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M&G Credit Income Investment Trust plc (MGCI)
30-Apr-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

M&G Credit Income Investment Trust plc

Discount and premium management

LEI: 549300E9W63X1E5A3N24

30 April 2021 

The Board of M&G Credit Income Investment Trust plc (the "Company") announces its intention to implement a "zero discount" policy (the "Policy") to seek to manage the discount or premium to net asset value ("NAV") at which the Company's ordinary shares (the "Ordinary Shares") trade.

The Board has been concerned by the Company's discount to NAV over the last eight months and, where there has been appropriate opportunity to do so, has undertaken a number of share buybacks in an effort to reduce the discount at which its Ordinary Shares have traded.  In addition, the Company's investment manager has held a number of meetings with both existing and potential investors. Pleasingly, these endeavours, coupled with a more positive market backdrop more generally, have led to a narrowing of the discount to NAV at which the Ordinary Shares trade. The Ordinary Share price as of close of business yesterday of 97.00 pence represented a discount of approximately 4.42% to the last published NAV per Ordinary Share of 101.49 pence.

The volatility in the price of the Ordinary Shares has not reflected the stability and low volatility of the underlying NAV. The Policy is being adopted because the Board believes that it is important for Shareholders to be able to benefit appropriately from the Company's investment objective which is to generate a regular and attractive level of income with low asset value volatility. The Company will therefore seek to ensure that the Ordinary Shares trade close to NAV in normal market conditions through a combination of Ordinary Share buybacks and the issue of new Ordinary Shares, or resale of Ordinary Shares held in treasury, where demand exceeds supply.

Further issuance would allow the Company to take advantage of opportunities in the private debt markets as they arise, as well as increase the size of the Company, which should reduce the ongoing charges figure and improve the liquidity of the Ordinary Shares.

The Board has therefore given instructions to Winterflood Securities Limited ("Winterflood") to implement the Policy on the Board's behalf. Any Ordinary Shares acquired shall be purchased pursuant to the general authority approved by the Company's shareholders at the Company's AGM on 25 June 2020 and any Ordinary Shares so purchased will be held in treasury.

These instructions are valid until cancelled, suspended or amended and have been put in place to ensure that Ordinary Share repurchases may continue, if required, even when the Company is in possession of inside information, including, for these purposes, during the short period prior to the announcement of the Company's NAV per Ordinary Share each month. The Board shall not cancel, suspend or amend these instructions at any time when it is in possession of inside information. Any purchases will be made in accordance with Chapter 12 of the Listing Rules and any repurchase decisions will be made by Winterflood independently of, and uninfluenced by, the Company. The Board has established, and will implement and maintain, adequate and effective internal arrangements and procedures to ensure that the Winterflood personnel carrying out the repurchases and any others persons who may have influence on those persons are not in possession of any inside information for the duration of the repurchase instructions.

 

 

For further information please contact:

All enquiries:
M&G Credit Income Investment Trust plc

 

Link Company Matters Limited,

Company Secretary

 

 

mandgcredit@linkgroup.co.uk

 


ISIN:

GB00BFYYL325, GB00BFYYT831

Category Code:

MSCH

TIDM:

MGCI

LEI Code:

549300E9W63X1E5A3N24

OAM Categories:

3.1. Additional regulated information required to be disclosed under the laws of a Member State

Sequence No.:

102172

EQS News ID:

1190850


 

End of Announcement

EQS News Service

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