5th Mar 2015 17:09
LONDON (Alliance News) - New City High Yield Fund Ltd Thursday proposed to change its name to CQS New City High Yield Fund Ltd, providing it with a closer association to its investment manager, while also proposing a placing of up to 158.3 million new shares.
The company is seeking shareholder approval to issue up to 158.3 million shares, equivalent to 50% of the company's current issued share capital, which if approved will be used in an initial placing and offer for subscription and the subsequent implementation of a new placing programme.
The company said that the issue of new shares, at a premium to net asset value, will lead to a modest uplift in net asset value for the shares it already has in issue, and will increase the size of the company, making it more attractive to a broader range of investors.
Although it did not detail a price for the initial placing, New City High Yield Fund said that it is expected to be at a price equivalent to a premium of 3.0% to the estimated net asset value per share at the latest practicable date prior to the relevant issue.
The trust has appointed Cantor Fitzgerald as the sole bookrunner for the initial placing and the placing programme.
The extraordinary general meeting to pass the proposals is set for March 30.
The trust closed up 0.4% Thursday at 61.50 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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Related Shares:
Cqs New C.h.y.f