Last checked at 7 Oct 2015 07:00
7 October 2015
Grainger plc
Update on Capital Structure
· S&P RAISES GRAINGER'S CORPORATE BOND RATING TO INVESTMENT GRADE, BBB-
· PORTFOLIO FINANCING RENEWAL SIGNED
Grainger plc ("Grainger", the "Company" or the "Group"), the UK's largest listed residential property owner and manager, is pleased to confirm that yesterday Standard & Poor's Ratings Services announced it had raised its issue rating on the Company's existing £275 million senior secured notes, due 2020, to investment grade, 'BBB-' from 'BB+'.
S&P's re-rating is based on their "improved valuation of the group's assets".
The Company also announces that it has signed a refinancing of its Grainger Invest property portfolio bank facility, as planned, with the existing lenders, HSBC and Santander, reducing its cost and extending its maturity.
The Grainger Invest property portfolio comprises c. 1,200 units split over eight high quality residential blocks predominantly in central London.
The new £150m facility replaces the existing £120m facility and will represent 11% of total group facilities (£1,367m). The facility will mature in September 2020 (previously March 2016) and leaves the Company with no further significant facility maturities until 2020. The margin on the facility has been reduced by 85bps to 170bps and the structure enables further pricing benefits to be gained at future lower levels of loan to value. Covenants remain unchanged.
Further information will be provided when the Group announces its full year results on 19 November.
-ENDS-
For further information:
Grainger plc
Andrew Cunningham / Mark Greenwood / Kurt Mueller
London Office Tel: +44 (0) 20 7940 9500
Newcastle Office Tel: +44 (0) 191 261 1819
FTI Consulting
Dido Laurimore/ Tom Gough/ Ellie Sweeney
Tel: +44 (0) 20 3727 1000