3rd Nov 2014 08:30
3 NOVEMBER 2014
INTU PROPERTIES PLC
INTU ANNOUNCES A STERLING CORPORATE BOND INVESTOR UPDATE CALL, IN PREPARATION FOR A PROPOSED £350M BOND FOLLOWING THE PROPOSED ADDITION OF INTU DERBY AND INTU CHAPELFIELD INTO THE GROUP'S SECURED FUNDING STRUCTURE
Intu Properties plc ("Intu") today announces an investor call with Sterling Corporate Bond investors, in preparation for the launch of a proposed £350 million bond issue for Intu (SGS) Finance plc (subject to continued supportive bond market conditions), following the proposed transfer of the intu Derby and intu Chapelfield shopping centres into the secured group structure ("SGS") funding platform as provided for under the program documentation.
As at 13 October 2014 the two proposed assets to be transferred into the SGS were valued at £679 million (intu Derby £419 million and intu Chapelfield £260 million). As at 13 October 2014 the four existing assets in the SGS were valued at £2,467 million (intu Lakeside £1,248 million, intu Braehead £580 million(1), intu Watford £335 million and intu Victoria Centre £304 million). When completed the six assets held in the SGS will have a combined value of £3,146 million and, following the issuance of the new £350 million bond, will have total outstanding debt of £1,502 million representing an LTV of c.48%.
The proceeds of the proposed new issue will be used to repay the existing debt facilities secured on intu Derby and intu Chapelfield.
The SGS structure was established in March 2013 as a central source of funding for Intu. At that time four centres with a value of £2,300m being intu Lakeside, intu Watford, intu Victoria Centre and intu Braehead were contributed into the structure and £1,152 million was raised in the form of secured bonds and term loans. The proposed transaction will be the first additional assets transferred in to the structure and new debt raised since its creation. This underlines the SGS as Intu's funding vehicle of choice.
The existing bonds and the new bond are expected to be rated A(sf) by Standard & Poor's. UBS and Lloyds Bank will be acting as joint bookrunners and the bond is expected to be listed on the Irish Stock Exchange.
Note (1) - The SGS assets exclude ancillary land and the King George V dock, valued at £19.3m as part of the 30 June 2014 intu Braehead reported valuation
Enquiries:
Intu Properties plc | ||
Matthew Roberts | Chief Financial Officer | +44 (0)20 7960 1353 |
Adrian Croft | Head of Investor Relations | +44 (0)20 7960 1212 |
Public relations | ||
UK: | Michael Sandler/Wendy Baker, Hudson Sandler | +44 (0)20 7796 4133 |
SA: | Frédéric Cornet, Instinctif Partners | +27 (0)11 447 3030 |
NOTES FOR EDITORS
Intu owns and operates many of the very best shopping centres, in many of the strongest locations right across the country, including nine of the UK's top 20. You can find the UK's top retailers in our shopping centres, alongside some of the world's most iconic global brands.
With over 21 million sq ft of retail space, our centres attract over 400 million customer visits a year and more than half of the UK population visit one of our centres each year.
At the forefront of UK shopping centre evolution since the 1970s, our focus is on creating compelling destinations for customers with added theatre.
Our nationwide consumer facing shopping centre brand - intu - is transforming our customer experience and digital proposition, including a transactional website with a view to providing the UK's leading shopping centre experience both on and off-line at 15 centres
We have an investment plan of £1.2 billion over the next ten years with projects at most of our centres.
Almost 100,000 people are employed at our centres across the UK and we are fully committed to supporting our local communities and the wider environment through meaningful and hands-on initiatives.
For further information see www.intugroup.co.uk
This announcement contains "forward-looking statements" regarding the belief or current expectations of Intu Properties plc, its Directors and other members of its senior management about Intu Properties plc's businesses, financial performance and results of operations.
These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Intu Properties plc and are difficult to predict, that may cause actual results, performance or developments to differ materially from any future results, performance or developments expressed or implied by the forward-looking statements. These forward-looking statements speak only as at the date of this announcement. Except as required by applicable law, Intu Properties plc makes no representation or warranty in relation to them and expressly disclaims any obligation to update or revise any forward-looking statements contained herein to reflect any change in Intu Properties plc's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Any information contained in this announcement on the price at which shares or other securities in Intu Properties plc have been bought or sold in the past, or on the yield on such shares or other securities, should not be relied upon as a guide to future performance.
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