(Alliance News) - Great Portland Estates PLC on Thursday said that it has raised GBP150 million via a new debt issue, increasing the company's capacity for growth.
The London-focused property company has issued GBP150 million worth of new unsecured US private placement notes. The notes cover 12-year and 15-year maturities and have a weighted average fixed-rate coupon of 2.77%.
Funds from the notes will be drawn on November 5. The notes were placed with six investors, including two new lenders to Great Portland Estates and have identical financial covenants to the company's other unsecured debt.
"The relatively long-dated nature of the notes will significantly extend the company's weighted average debt maturity to 7.5 years once drawn and increase available liquidity to more than GBP500 million," Great Portland said.
Martin Leighton, director of Corporate Finance at Great Portland Estates, said: "We are very pleased with this substantial new debt issue which locks in low cost, long-dated unsecured debt at a time of economic uncertainty and further enhances our significant financial capacity for growth should opportunities emerge."
Shares in FTSE 250-listed Great Portland were up 1.4% at 589.20 pence each on Thursday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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