Exeter Enhanced Income pays down gearing

Exeter Enhanced Income Fund has repaid a £6.67m RPI-linked loan for a total cost of £7.59m to move back within its banking covenants. Its covenants require that total borrowings must not exceed 150% of adjusted NAV. Following the repayment, total borrowings now equal 142%. Credit Lyonnais Securities said the trust is experiencing dividend reductions and suspensions on its investment trust portfolio, and as a result the board intends to review its dividend policy when the half-yearly results are known. The directors said it is likely ordinary shareholders will be paid a lower level of divide...