Chelverton Small Companies Dividend trust unveils plans to double AUM

£75m in new Ordinary shares

The £60m Chelverton Small Companies Dividend trust has announced plans to issue new shares with the goal of more than doubling its assets under management.

The trust, which was launched in 1999, hopes to raise as much as £75m in new ordinary shares, and to issue some £30m of new zero dividend preference (ZDP) shares on a term of 7.3 years and with a gross redemption yield of 4%. With the vehicle's ZDP shares due for final repayment on 8 January, the board of the trust had been considering options for a refinancing of the company. "It is an appropriate time to increase the size of the company and to raise additional capital," the board said. It is proposing an issue of C-shares through a placing, as well as an issue and placing of new ...