Derwent agrees £250m private placement
Derwent London has agreed a private placement of £250m of new senior unsecured notes with eight institutional investors which it plans to use for “general corporate purposes and to refinance existing group indebtedness”.
The issue consists of four tranches, to be drawn on 31 January 2019, with maturities ranging between seven and 15 years.
The four tranches are: £55m at 2.68% due 2026; £93m at 2.87% due 2029; £50m at 2.97% due 2031; and £52m at 3.09% due 2034.
Derwent London has agreed a private placement of £250m of new senior unsecured notes with eight institutional investors which it plans to use for “general corporate purposes and to refinance existing group indebtedness”.
The issue consists of four tranches, to be drawn on 31 January 2019, with maturities ranging between seven and 15 years.
The four tranches are: £55m at 2.68% due 2026; £93m at 2.87% due 2029; £50m at 2.97% due 2031; and £52m at 3.09% due 2034.
The weighted average coupon of the fixed-rate notes equates to 2.89%, with a weighted average maturity of 10.8 years.
Damian Wisniewski, finance director of Derwent London, said: “With our recent credit rating upgrade, a September 2018 loan-to-value ratio of 16.3% and strong interest cover, the group is well placed to fund its pipeline of value-enhancing projects and to continue growing earnings.
“When drawn in January 2019, the issue will increase our available facilities and extend our weighted average debt maturity.”
Barclays, HSBC, NatWest Markets and Wells Fargo acted as joint placement agents.
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