DJ Publication of a Circular and Notice of General Meeting
M&G Credit Income Investment Trust plc (MGCI)
Publication of a Circular and Notice of General Meeting
04-Feb-2025 / 07:00 GMT/BST
=----------------------------------------------------------------------------------------------------------------------
4 February 2025
LEI: 549300E9W63X1E5A3N24
M&G Credit Income Investment Trust plc
Publication of a Circular and Notice of General Meeting
The Board of M&G Credit Income Investment Trust plc (the "Company") announces that it has today published a circular
(the "Circular") to convene a general meeting (the "General Meeting") to allow Shareholders to consider and, if thought
fit, approve the allotment of up to a further 31,002,226 Ordinary Shares (representing in total 20 per cent. of the
issued Ordinary Share capital of the Company on the basis that the authorities granted at the 2024 AGM are fully
exhausted), with statutory pre-emption rights disapplied (the "Proposals").
Background to the Proposals
At the 2024 AGM, Shareholders approved the allotment of up to 14,091,900 Ordinary Shares (representing approximately 10
per cent. of the then issued share capital) on a non-pre-emptive basis, such authority to expire at the conclusion of
the 2025 AGM. Since the 2024 AGM, the Ordinary Shares have traded at an average premium to the prevailing NAV per
Ordinary Share of 1.0 per cent. and the Company has issued over 9.6 million Ordinary Shares, comprising issuance from
treasury and new issuance, raising over GBP9.3 million of capital.
There has been high and sustained demand for Ordinary Shares from a wide range of investors, including an increasing
number of retail investors. As a result, as at the Latest Practicable Date, the Directors have authority to allot up to
4,415,368 additional Ordinary Shares on a non-pre-emptive basis which represents 2.9 per cent. of the issued share
capital of the Company. If the current rate of issuance were to continue, the 2024 AGM Allotment Authority would be
expected to be fully utilised some time in advance of the 2025 AGM, where the renewal of such authority would typically
be sought.
The Resolutions are being put forward for the primary purpose of ensuring that the Company can continue to meet ongoing
demand for Ordinary Shares from investors pursuant to the operation of its "zero discount" policy. This policy is
designed 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.
General Allotment Authorities
The Board is seeking approval from the Shareholders:
-- to allot up to a further 15,501,113 Ordinary Shares, in addition to those already authorised by the 2024
AGM Allotment Authority (representing approximately 10 per cent. of the issued share capital of the Company
calculated on the basis that the 2024 AGM Allotment Authority has been fully utilised), for the period up until the
end of the 2025 AGM, with statutory pre-emption rights disapplied; and
-- to allot up to a further 15,501,113 Ordinary Shares, in addition to those already authorised by the 2024
AGM Allotment Authority and the authority described above (representing approximately 10 per cent. of the issued
share capital of the Company calculated on the basis that the 2024 AGM Allotment Authority has been fully
utilised), for the period up until the end of the 2025 AGM, with statutory pre-emption rights disapplied.
Any Ordinary Shares would be issued at a price of not less than the prevailing NAV per Ordinary Share together with a
premium intended to cover the costs and expenses of the issue of Ordinary Shares.
Given the nature of the Company's strategy, the Board believes that the Investment Manager will be able to deploy any
additional capital raised pursuant to the General Allotment Authorities within a period that would not result in any
material dilution in returns for existing Shareholders.
As at the date of the Circular, the Company does not hold any shares in treasury.
Benefits of the Proposals
The Board believes that the Proposals, once implemented, have the following benefits for Shareholders:
-- they will enable the Board to manage actively its existing Ordinary Share price premium to NAV, thus
enabling compliance with the Company's "zero discount" policy;
-- continued issuance will increase the NAV, therefore spreading the Company's fixed costs over a larger
capital base and reducing its ongoing charges ratio; and
-- they may enable increased liquidity in the Ordinary Shares in the secondary market.
General Meeting
The formal notice convening the General Meeting, to be held at the offices of M&G Alternatives Investment Management
Limited, 10 Fenchurch Avenue, London EC3M 5AG at 9:30 a.m. on 27 February 2025, is set out at Part III of the Circular.
The Notice of General Meeting includes the full text of the Resolutions.
Expected Timetable
Latest time and date for receipt of hard copy forms of proxy or electronic proxy appointments
for the General Meeting 9.30 a.m. on 25
February 2025
General Meeting 9.30 a.m. on 27
February 2025
Publication of the results of the General Meeting
27 February 2025
All times are UK times. Each of the times and dates in this expected timetable (other than in relation to the General Meeting) may be extended or brought forward. Any changes to the expected timetable will be notified to the market by the Company via an RIS announcement.
Terms used and not defined in this announcement shall have the meanings given to them in the Circular.
A copy of the Circular has been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The Circular will also be available on the Company's website: http://www.mandg.co.uk/creditincomeinvestmenttrust.
Neither the NSM website nor the Company's website nor the content of any website accessible from hyperlinks on those websites (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.
Enquiries:
M&G Credit Income Investment Trust plc 0203 757 1912 MUFG Corporate Governance Limited, Company Secretary Winterflood Investment Trusts 0203 100 0000 Neil Morgan
----------------------------------------------------------------------------------------------------------------------- Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
ISIN: GB00BFYYL325, GB00BFYYT831 Category Code: NOG 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.: 374453 EQS News ID: 2080259 End of Announcement EQS News Service =------------------------------------------------------------------------------------
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=2080259&application_name=news&site_id=dow_jones%7e%7e%7ef1066a31-ca00-4e1a-b0a4-374bd7d0face
(END) Dow Jones Newswires
February 04, 2025 02:00 ET (07:00 GMT)
