SEGRO completes bond tender and new issue

By Paul Norman - Thursday, October 05, 2017 10:06

SEGRO has completed the launch and pricing of £750m of bonds and bought back Sterling bonds across four tranches equal to £550m at a cash cost of £677m.

SEGRO launched and priced a £350m bond with a maturity of 12 years paying a coupon of 2.375% and a £400m bond with a maturity of 20 years paying a coupon of 2.875%.

SEGRO also confirms that is has accepted for purchase in cash an aggregate principal amount of existing Sterling bonds across four tranches equal to £550m at a cash cost of £677m.  

The pro-forma impact of the tender offer and new issuance on the Group's financial metrics is:

· The weighted average maturity of debt increases by 3.0 years to 10.8 years

· The annual interest saving is circa £10m equating to a 0.5% reduction in the cost of debt

· The loan-to-value increases by 1% to 30%

· EPRA net assets will be circa £127m lower

Soumen Das, SEGRO's Chief Financial Officer, said: "We are delighted with the support we have received from our long-term sterling bond investors on both the tender and the highly over-subscribed new issue. The success of this transaction is a further endorsement of SEGRO's strategy, and allows us to strengthen our balance sheet by extending our debt maturity and reducing our average cost of debt."

Banco Santander, S.A., HSBC Bank plc and Lloyds Bank plc acted as Dealer Managers on the Tender Offer, with The Royal Bank of Scotland plc (trading as NatWest Markets) acting as Co-Dealer Manager. Banco Santander, S.A., HSBC Bank plc, Lloyds Bank plc and The Royal Bank of Scotland plc (trading as NatWest Markets) acted as joint bookrunners on the New Issues, with Wells Fargo Securities International Limited acting as Senior Co Manager and Bank of China Limited, London Branch and KBC Bank NV acting as Co Managers.

pnorman@costar.co.uk

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