FRNI Framlington Inc

RNS Number:8585G
Framlington Income&Capital Tst PLC
30 January 2003


Framlington Income & Capital Trust PLC

30 January 2003

Revised Banking Arrangements


The Board of the Company announces that, in light of the continuing weakness in
equity markets, the Company has agreed with Bank of Scotland (the "Bank") a
number of adjustments to its existing banking arrangements.


The financial covenant in the loan agreement which requires the ratio of the
Company's portfolio of UK quoted securities (less any cash offset) to the amount
of its total borrowings to be not be less than 2.0 times has been reduced to 1.9
times. A new financial covenant has been agreed with the Bank whereby the
aggregate value of specified investments held by the Company shall not be less
than 1.25 times the amount of its total borrowings. Specified investments
comprise shares of companies with a market capitalisation of at least #500
million, UK government gilts and cash. The other existing financial covenants in
the loan agreement remain unchanged.


The Company has also agreed with the Bank that cash amounts deposited with the
Bank up to a maximum amount of #5 million may be offset against the aggregate
amount borrowed for the purpose of the financial covenants specified above. This
cash deposit offset arrangement has not been utilised, but will be available
until 31 July 2003, subject to review by the Bank thereafter.


The aggregate amount of the Bank loan is #30 million, comprising two tranches of
#20 million and #10 million. In connection with the new arrangements, the
interest rate payable to the Bank in respect of each tranche of the Bank loan
will increase by 10 basis points per annum to 8.455 per cent. per annum and
7.765 per cent. per annum respectively.


As at 28 January 2003, the Company had total assets of #64.7 million (excluding
current period revenue), including #5.7 million of cash. As at the same date,
the Company had asset cover of 2.01 times against the requirement of 1.9 times
under the adjusted financial covenant ratio referred to above and asset cover of
1.62 times against a requirement of 1.25 times under the new financial covenant
referred to above.



Enquiries:

Paul Branigan                                                    020 7374 4100
Framlington Investment Management Limited




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