26th Feb 2014 11:54
LONDON (Alliance News) - St Modwen Properties PLC Wednesday said it plans to raise GBP100 million through the offering of guaranteed convertible bonds due 2019, which it will use to refinance existing bank debt.
The raising forms part of the property developer's strategy to diversify debt funding sources, lower debts cost and extend maturities, taking advantage of current favourable market conditions.
St Modwen said the bonds will be issued by its subsidiary St Modwen Properties Securities, a company incorporated in Jersey and will be guaranteed by the overall group.
A coupon of between of 2.6% and 3.1% a year is expected to be payable semi-annually in arrears.
The initial conversion price is expected to be set at a premium of between 27.5% and 35% above the volume weighted average price of the shares from market open to close of trading Wednesday.
The joint bookrunners for the offering are JP Morgan Cazenove and Royal Bank of Scotland Group PLC.
The stock was trading at 390.50 pence Wednesday morning, down 18.00 pence or 4.4%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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