BFS Equity Income & Bond is not going to offer short-dated zero holders a rollover option when the s...
BFS Equity Income & Bond is not going to offer short-dated zero holders a rollover option when the share class expires on 14 January.
The split-capital trust also has a class of longer-dated zeros which wind up in 2006.
The shorter-dated zeros were taken into the capital structure of the trust after the takeover of the Environmental Investment Company, an offshore split capital trust, in November 1998.
These zeros are run by a subsidiary of the trust, BFS Equity Income & Bond Trust (Jersey) Limited (BEIB Jersey). Its directors are now required to convene an EGM to be held on 14 January 2002 at which a special resolution is to be proposed to wind it up.
BEIB Jersey has 12 million zero shares in issue and if it is wound up some £19.2m will be paid out to shareholders, out of a total £105.3m of assets as at 14 December 2001.
Nigel Sidebottom, director at BFS, said: 'This is not the right climate to refinance a zero and, as things stand, the zero will just redeem on the said date. At the moment, the trust is well placed to move forward and there are adequate assets to make redeeming the zero not a problem.'
Similarly, on 14 January, a long-term loan facility of £9.2m is due to be repaid and the directors have resolved that this facility will be repaid on that date.
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