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(Alliance News) - Healthcare properties firm Primary Health Properties PLC on Tuesday priced its convertible bonds due 2025 at GBP150 million.
The bonds will be issued by PHP Finance, a wholly-owned subsidiary of the company incorporated in Jersey.
Primary Health said the net proceeds will be used to repay the company's GBP75 million 5.375% senior unsecured bonds due 2019, and for "general corporate purposes".
The new bonds will carry a coupon of 2.875% per annum payable semi-annually.
The bonds will be converted into shares, with an exchange price set at 153.25 pence, a premium of 15% over the company's volume weighted average price on Tuesday of 133.26p.
Shares in Primary Health Properties closed 3.9% lower in London on Tuesday at 133.59p each.
"We are delighted to be returning to the convertible bond market following the completion of our transformative merger with MedicX Fund Ltd. The coupon of 2.875% reflects the confidence with which the enlarged group is viewed by the capital markets and will reduce the enlarged group's average cost of finance to 3.8% following repayment of the 5.375% senior unsecured bond at the end of July 2019," said PHP Managing Director Harry Hyman.
"The proceeds will further strengthen our position for the continued acquisition of high quality, income generating assets as we expand our portfolio of modern primary care centres in the UK and Ireland," Hyman added.
Stifel Nicolaus Europe Ltd is acting as global coordinator and joint bookrunner. Barclays Bank and HSBC Bank are acting as joint bookrunners. IDCM Ltd and Peel Hunt LLP are acting as co-managers for the offering.
