Property company Picton has signed a provisional refinancing deal that should pave the way for a recovery in its shares. It has agreed to take £209m of debt from two insurance companies, Canada Life and Aviva. The contracts won't complete until next month, but on the basis of current gilts yields, the cost of the package will be just 4.4 per cent. They will mature in tranches in 10, 15 and even 20 years' time.
IC TIP:
Buy
at
49p
The news is a relief for shareholders. The expiry of the company's debt in 2013 had been a worry. Now only £30m of zero-dividend preference shares remain due. Sorting these out will be fund manager Michael Morris' next task.
