29th Jun 2020 09:36
(Alliance News) - Grainger PLC on Monday said it continues to trade "strongly" and has extended its debt maturity profile through the issuance of a GBP350 million bond.
The Newcastle-based residential property business has issued a GBP350 million in sterling-denominated senior secured bonds at a coupon of 3.0% for 10 years. The bond is rated BBB- by S&P.
Proceeds from the bond issue will be used to support Grainger's plans to grow its private rented sector pipeline and to repay a GBP200 million short-term bank facility.
Chief Financial Officer Vanessa Simms said: "Today's transaction is an important milestone in extending our maturity profile and provides long-term interest rate certainty at an attractive coupon. This will enhance our funding capacity to expand our PRS pipeline further."
The FTSE 250-listed company said it has continued to perform strongly since its interim results on May 14, with 96% of rent collected on-time during May versus 95% in March and 94% in April. Residential rent arrears remained stable at 1.6% by the end of May.
Like-for-like rental growth remained robust, and occupancy levels were maintained over 97% in May.
"Momentum in our sales pipeline has continued to build with pricing ahead of valuations," Grainger said.
Barclays Bank PLC, HSBC Bank PLC and NatWest Markets PLC acted as joint bookrunners for the bond issue. Rothschild & Co acted as financial adviser.
Shares in Grainger were down 0.6% at 276.50 pence each in London on Monday morning.
By Tapan Panchal; [email protected]
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