(Alliance News) - Capital & Counties Properties PLC on Thursday said it has launched an offering of GBP250 million of secured exchangeable bonds due 2026, exchangeable for shares of Shaftesbury PLC, the real estate investment trust.
The London-based property investment and development company said the bonds will be issued at par and will carry a coupon of 2.0% per annum, payable semi-annually in arrears in equal instalments.
The company said it has a shareholding of 25% in Shaftesbury, as a result of committing to acquire 80.7 million shares for 540 pence per share in May and a further 16.3 million shares for 400 pence per share in October.
Capital & Counties said it continues to actively manage its portfolio of assets with a focus on creating long-term value for shareholders as well as maintaining a strong balance sheet and significant liquidity to manage the business through current market uncertainty and to position it for long-term growth.
This offering will provide additional financial flexibility and liquidity to the company, it said.
Following the issue of the bonds, Capital & Counties will have access to GBP890 million of cash and undrawn facilities.
The shares to be pledged in connection with the bonds are expected to represent approximately one-third of the company's shareholding.
Capital & Counties shares were trading 3.7% lower in London on Thursday at 139.80 pence each, while in Johannesburg, the stock closed 2.0% lower at ZAR28.78 a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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