For immediate release on 14 November 2011
Utilico Investments Limited ("UIL")
Utilico Finance Limited ("UFL")
(together the "Group")
Zero Dividend Preference Shares
Further to the announcement of the Group's annual results on 23 September 2011, which contained a statement regarding proposals to offer the holders of 2012 ZDP shares the opportunity to elect to roll part of their investment into a new 2018 ZDP share issue and arrangements to enable the issue of additional 2014 ZDP shares, 2016 ZDP shares and 2018 ZDP shares, the Group announces a summary of terms of the proposals below. It is expected that the proposals will include:
- An opportunity for the 2012 ZDP holders to exchange up to 65 per cent. of their existing 2012 ZDP shares for new 2018 ZDP shares based on the accrued capital entitlement at the rollover date. Applications may be made for more than the 65 per cent. of each holder's entitlement but excess elections will only be satisfied to the extent that other 2012 ZDP shareholders have not made valid elections to take up their entitlement. The new 2018 ZDP shares will be issued at 100p and have a gross redemption yield of 7.25% with a maturity date of 31 October 2018. The ZDP cover of the new 2018 ZDP shares will be not less than 1.5x in relation to further issues of ZDP shares and repurchases of UIL ordinary shares.
- A placing of up to 10m new 2014 ZDP shares, up to 10m new 2016 ZDP shares and, in the event that the rollover offer is not taken up in full, new 2018 ZDP shares. The placing is flexible and will provide UFL with the ability to issue new ZDP shares over a 12 month period. The minimum price at which each new ZDP share will be issued pursuant to the placing will be not less than the accrued capital entitlement of the existing ZDP shares of the same class as the new ZDP shares which are being issued and the maximum placing price will be equal to the best offer price of the relevant class of ZDP shares, as quoted on the London Stock Exchange at the time that the proposed allotment is agreed.
The Group is currently preparing a prospectus in connection with these proposals which will be published in due course following approval of the UKLA.
For further information please contact:
ICM Analysis & Research Ltd
Charles Jillings 01372 271486
Westhouse Securities Limited
Hannah Young/Alastair Moreton 0207 601 6119
This information is provided by RNS