3rd Sep 2013 07:48
LONDON (Alliance News) - Great Portland Estates PLC Tuesday said it would offer GBP150 million of senior, unsecured convertible bonds due in 2018 to refinance the acquisition of Oxford House in West London and help fund its near-term development programme.
It is currently on site on four schemes which are 57% pre-let, but still has capital expenditure plans of GBP79.8 million for those sites. It has a further five schemes which could potentially start in the next two years with capital expenditure of GBP338 million. It's also busy in the London property investment market, buying GBP202 million and selling GBP217.2 million in the last year.
The bonds are expected to have a stated maturity date of September 10, 2018, and are expected to carry a coupon of between 1.0% and 1.5% a year payable semi-annually in arrears, the company said in a statement. The initial conversion price for the bonds is expected to be set at a premium of between 30% and 35% above the volume weighted average price of the shares between launch and pricing on September 3.
The shares underlying the bonds represent approximately 5.9% to 6.2% of the company's issued share capital immediately prior to the offering, it added.
Separately, Great Portland said The Great Wigmore Partnership, its joint venture with Scottish Widows Investment Partnership, had let the last floor of 95 Wigmore Street in London's West End district.
The shares were down 2.9% at 528.5 pence early Tuesday, the second-biggest decline on the FTSE250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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