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SAINTS goes marching into US PP market

Scotland
By Silas Brown
15 Apr 2019

The Scottish American Investment Co (SAINTS), an investment trust managed by Baillie Gifford, has raised £80m of debt in private placements.

Centrus advised SAINTS and arranged the deal, which had two £40m tranches — one expiring in April 2045 and the other in April 2049. The Pension Insurance Corp bought the notes.

Each maturity has a fixed coupon of 3.12%, and there is a deferred drawdown up to April 2022. The  debt will be used to redeem £80m of SAINTS' debenture stock, which is due in April 2022.  

"Our current borrowing arrangements date from a time when the prevailing interest rates were much higher than today, and the existing debenture bears a coupon of 8%," said SAINTS's chairman, Peter Moon. 

"The existing debenture cannot be repaid early without significant penalty. However, I am pleased to say that we have been able to take advantage of current market conditions to agree replacement long term borrowing at a fixed rate of just over 3% per annum." 

SAINTS was formed by William Menzies in 1873, making it one of the oldest investment trust companies still in operation. Baillie Gifford began managing the trust in January 2004. 

By Silas Brown
15 Apr 2019