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Article: BlackRock trust looks to convertibles.
- Article from:
- Fund Strategy
- Article date:
- August 3, 2009
CopyrightCOPYRIGHT 2009 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The board of the BlackRock Latin American Investment Trust is seeking shareholder approval to issue up to $75m (#46m) of convertible bonds to gear the fund.
Jonathan Ruck-Keene, the head of investment companies at BlackRock, says despite a considerable uncertainty, the board takes a long-term view on Latin American markets and aims to introduce medium-term gearing.
The trust currently has a short-term overdraft facility of less than one year. However, Ruck-Keene says longer-term gearing is expensive, if obtainable at all. The company therefore hopes to achieve this through a convertible bond issue on significantly better terms than via the banks
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