2nd Jun 2015 06:12
LONDON (Alliance News) - British Land Co PLC Tuesday said it has launched a GBP350 million offering of senior, unsecured convertible bonds due 2020, money it will use to fund the recently announced GBP210 million acquisition of One Sheldon Square, Paddington Central and the GBP135 million acquisition of Surrey Quays Leisure Park, Canada Water, as well as committed development spending.
"More generally, the company believes that the offering contributes to the company's existing strong financial position while also taking advantage of the current favourable market conditions to diversify its medium term sources of finance and keep its cost of debt low," it said in a statement.
The bonds are expected to be issued by British Land (White) 2015 Ltd, a wholly-owned subsidiary of the company incorporated in Jersey, and will be guaranteed by the company.
They will have an expected maturity date of June 9, 2020, will be issued at par and are expected to carry a coupon of between 0.00% and 0.50% a year payable semi-annually in arrears. The initial conversion price is expected to be set at a premium of between 20.0% and 27.5% above the volume weighted average price of the shares between launch and pricing.
The shares underlying the bonds represent approximately 3.08% to 3.28% of the company's issued share capital immediately prior to the offering, British Land said.
Goldman Sachs, Morgan Stanley, and UBS are acting as global coordinators and Goldman Sachs, Morgan Stanley, The Royal Bank of Scotland Group PLC and UBS are acting as joint bookrunners. Morgan Stanley and UBS are acting as corporate brokers and advisers to British Land.
By Steve McGrath; [email protected]; @stevemcgrath1
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