Derwent London Plc (LON:DLN) today announced that it has signed an agreement with eight institutional investors for a private placement of £250 million new senior unsecured notes. The issue consists of four tranches with maturities ranging between 7 and 15 years. The weighted average coupon of the fixed rate notes equates to 2.89% with a weighted average maturity of 10.8 years.
The four tranches, to be drawn on 31 January 2019, are: £55 million at 2.68% due 2026, £93 million at 2.87% due 2029, £50 million at 2.97% due 2031 and £52 million at 3.09% due 2034.
The issue was priced on 31 October 2018 and the note purchase agreement signed on 21 November 2018. The funds will be used for general corporate purposes and to refinance existing Group indebtedness.
Barclays, HSBC, NatWest Markets and Wells Fargo acted as joint placement agents.
Damian Wisniewski, Finance Director of Derwent London, commented:
“We are very pleased with the support that this issue received both from existing and new investors. 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.”
