24th Jul 2020 10:02
(Alliance News) - London-based Segro PLC on Friday announced a private placement of 12, 15 and 20 year senior unsecured notes with a group of institutional investors as well as the redemption of outstanding amounts for bonds due in 2021 and 2022.
The placement consists of EUR450 million in three tranches, the first being EUR150 million at a fixed coupon of 1.4% due in 2023, the second being EUR50 million at a fixed coupon of 1.5% due in 2035, and finally EUR250 million at a fixed coupon of 1.8% due 2040.
Chief Financial Officer Soumen Das said: "The support we have received from our existing and new investors for our third US private placement debt issue is a further endorsement of the strategy we are pursuing at Segro, reflected particularly in the long duration and low coupons of the new notes."
The property investment and development company said it intends to redeem the full outstanding amounts of the 6.8% sterling bonds due 2021 as well as the 7.0% sterling bonds due in 2022. The value of the bonds was GBP118 million and will be redeemed for GBP131 million in August and September.
Of the original GBP300 million for the bonds due in 2021, GBP79.3 million is still outstanding. The notes will be redeemed at 108.5% together with accrued interest.
Of the original GBP150 million for the bonds due in 2022, GBP39.1 million remains outstanding. These notes will be redeemed at the adjusted redemption price of 110.6% together with accrued interest.
Pro forma for the position as at June 30, the transactions will extend Segro's average debt maturity to 11 years and reduce the average cost of gross debt to 1.6%.
The proceeds of the private placement will be used for general corporate purposes, the company said.
Segro shares were down 1.6% at 927.20 pence each on Friday morning in London.
By Greg Roxburgh; [email protected]
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