Great Portland Estates PLC GPE refinances in the US Private Placement market (8055A)
March 29 2017 - 1:00AM
UK Regulatory
TIDMGPOR
RNS Number : 8055A
Great Portland Estates PLC
29 March 2017
29 March 2017
GPE refinances in the US Private Placement market
Great Portland Estates plc ("GPE") announces that it has raised
GBP175 million through the issue of new seven year US private
placement notes. The Sterling denominated unsecured debt has a
fixed rate coupon of 2.15% (representing a margin of 125bp over the
relevant Gilt).
The new issue priced on 22 February, signed on 28 March and will
close with funds drawn on 22 May. The new notes were placed with
eight institutional investors, including three new lenders to GPE,
and have identical financial covenants to the Group's other
unsecured debt.
The new notes will refinance GBP159.7 million (principal amount)
of existing private placement notes which were prepaid last week at
a total cash cost of GBP176.1 million. These notes had a blended
fixed rate coupon of 5.3% and were due to mature in 2018 and
2021.
Looking ahead, GPE also intends to prepay the remaining GBP127.7
million of existing private placement notes (maturing in 2019 and
2022 with a blended fixed rate coupon of 4.6%) following receipt of
the majority of the Rathbone Square, W1 freehold sale proceeds,
which is expected to occur next month.
These refinancing activities will extend the Group's weighted
average debt maturity to 6.4 years (4.7 years at 31 December 2016)
and reduce the Group's weighted average interest rate to
approximately 2.7% (3.7% at 31 December 2016).
NatWest Markets and Santander acted as joint active agents on
the new issue. JC Rathbone Associates are acting as hedging
advisers in respect of the prepayments.
Nick Sanderson, Finance Director of GPE commented, "We are very
pleased with the considerable investor appetite shown for this
issue, with an order book of more than GBP800 million testament to
our focused business strategy and conservative capital structure.
This financing locks in low cost debt funding for the next cycle
and we believe the coupon is the lowest Sterling rate ever achieved
by a REIT in the US private placement market."
Contacts:
Great Portland Estates plc
Nick Sanderson, Finance Director +44 (0) 20 7647 3034
Martin Leighton, Head of Corporate Finance +44 (0) 20 7647 3056
Finsbury Group
Gordon Simpson +44 (0) 20 7251 3801
James Murgatroyd +44 (0) 20 7251 3801
This information is provided by RNS
The company news service from the London Stock Exchange
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