13th May 2016 06:27
LONDON (Alliance News) - Student accommodation developer Unite Group PLC Friday said the Unite UK Student Accommodation Fund, in which it has a 23% stake, has launched and priced GBP125.0 million of new bonds.
Unite UK Student is a specialist student accommodation fund in the UK, currently holding a portfolio of 78 properties valued at over GBP2.10 billion.
Unite Group said the GBP125.0 million is a further issuance under Unite UK Student's existing 3.921% bond due June 2025.
The new issue is being raised at a premium and will bring total proceeds of GBP137.0 million, reflecting an implied yield of 2.744%, Unite Group said. The funds will be used to repay secured debt that is due to mature in the next year ad swell as fund further growth, Unite Group added.
The group said that the funds raised extend Unite UK Student's financing platform, increasing its weighted average debt maturity from seven years at the start of the 2016 to eight years.
Unite Group's share of the new debt represents approximately 4.0% of the its total net debt, on a see-through basis, as at December 31, the company added.
"The launch and pricing of the new bond builds on Unite UK Student's robust financing platform at attractive pricing levels. Maintaining a strong investment grade rating provides continued benefits in giving access to longer term finance, at competitive rates from a range of capital sources," said Unite Group Chief Executive Joe Lister.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Unite