30th Aug 2006 10:09
British Land Co PLC30 August 2006 30 August 2006 £1 BILLION DEBENTURE RESTRUCTURING COMPLETED The British Land Company PLC ("British Land") has completed a market leading,multi-tranche £1 billion restructuring of its debentures. All tranches benefit from being issued by The British Land Company PLC and therestructuring creates the largest individual UK debenture security pool valuedat £1.8 billion. The deal is expected to improve the liquidity of thedebentures, given the overall enlarged size, improved common covenants andenhanced transparency. The new debentures are as follows: £€98 million 6.75% First Mortgage Debenture Bonds due 2011 £€200 million 6.75% First Mortgage Debenture Bonds due 2020 £€310 million 5.357% First Mortgage Debenture Bonds due 2028 £€25 million 9.375% First Mortgage Debenture Bonds due 2028 £€330 million 5.264% First Mortgage Debenture Bonds due 2035 £€42 million 8.875% First Mortgage Debenture Bonds due 2035 British Land will make a pre-tax exceptional charge of £228 million (1), mainlydue to the difference between the redemption value and book/nominal value of there-couponed debentures. EPRA adjusted NAV will be reduced by 30 pence per share;there will be virtually no effect on NNNAV. British Land's annual interest costswill be reduced by approximately £10 million and its weighted average cost ofdebt will be reduced from 5.69% to 5.41%. Shareholders will benefit from re-couponing to give a lower average interestcost on the new debentures and as such British Land will enjoy increaseddividend cover and distribution flexibility. In addition, British Land benefitsfrom the creation of a simplified, uniform secured debt structure for thenon-securitised part of the group. This announcement follows a prior regulatory announcement issued on 21 July 2006that provides more detail on the transaction and the initial proposal tobondholders. Contacts The British Land Company PLCLaura De Vere Tel.: +44 20 7467 2920 FinsburyFaeth Birch Tel.: +44 20 7521 3801 (1) The financial effects of the Proposed Transaction on British Land are stated on a pro forma basis as though the Proposed Transaction were completed on 30 June 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
British Land