9th Dec 2005 12:28
Slough Estates PLC09 December 2005 Slough Estates plc Completes Various Debt Re-financing and ExtensionInitiatives. Slough Estates announces that it has completed a series of initiativesundertaken during 2005 to lengthen the Group's debt maturity profile and toreduce its average cost of debt. All these initiatives replace existingfacilities and the funds raised are for general corporate purposes including thefunding of some specific projects as previously announced and as noted againbelow. All of the funding transactions listed below have already been announcedto the market. Following completion of these transactions, the Group's weighted average cost ofdebt has fallen to circa 5.75% and the remaining weighted average life of debthas increased to 13.25 years. A £100 million fungible tap of the 5.75% 2035 bond was launched on 16thNovember. This was priced at 99.897% at a spread of 152 basis points over thebenchmark UK Gilt. Net proceeds including accrued interest are approximately£102 million. This has been signed today and is due to close on the 14thDecember 2005. The proceeds will be utilised to reduce bank lines drawn to fundbonds redeemed during the Debt Exchange Programme closed on 20th June 2005. A new £250 million 5.625% 2020 bond was closed on the 7th December 2005. Thiswas priced at 99.186% at a spread of 133 basis points over the UK Gilt. Netproceeds were approximately £246.7 million. Proceeds have been used to refinancebank lines drawn to fund the purchases of the two holding entities owningHeywood Distribution Park and Woodside, Dunstable completed in July 2005. Anystabilisation of the 2020 bonds and the 2035 bonds is in accordance with FSArules. A new 5 year US$550 million multi currency committed revolving credit facilitywas signed on 28th November 2005. The Company has the option to extend theoriginal duration by one year on each of the first two anniversaries of thesigning date. This is to replace a bank line due to expire in June 2006 that wasused to fund the purchases of the Shoreline and Seaport business parks in SanFrancisco and the land at Bressi Ranch in San Diego, completed in June 2005. Theinitial undrawn amount on signing remains available for general corporatepurposes. The existing 5 year EUR 150 million committed revolving credit facility signedon 31st July 2002 was extended with the same syndicate of banks on 23rdSeptember 2005 to mature on 31st July 2010 at an immediately effective reducedmargin. The existing 5 year £415 million multi currency committed revolving creditfacility signed on 16th December 2002 was extended with the same syndicate ofbanks on 10th June 2005 to mature on 4th January 2011 at an immediatelyeffective reduced margin. The above initiatives were in addition to the previously announced Debt ExchangeProgramme closed on 20th June 2005 whereby £322 million of bonds with a weightedaverage interest rate of 10.92% were exchanged into £100 million 5.75% 2035bonds, £200 million 5.50% 2018 bonds and circa £150 million of bank linedrawings for an exchange cost of £126 million. These transactions will save theGroup over £10 million per annum in interest charges going forward. Trevor Mant, Slough Estates' Group Treasurer, commented 'We have had a busyyear. However, I am pleased that the Group is now well positioned to go into2006 with no impending debt maturities and without the legacy of the historicalhigh coupon debt that was previously on the balance sheet.' Contact: Trevor MantGroup Treasurer - Slough Estates plcDirect Tel: 01753-213389 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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