UAI.L Regulatory News (UAI)

21 Sep 2007 07:02

Development Securities PLC21 September 2007 20 year Unsecured Loan Note Issue Development Securities PLC, the leading property development and investmentcompany, announced today that is has raised Euro 47million through the issue of20 year Unsecured Subordinated Loan Notes. The Notes, listed on the ChannelIslands Stock Exchange, are redeemable anytime after 5 years at no additionalcost. The proceeds have been fully exchanged with HSH Nordbank through a 20-yearinterest and currency swap into a £32 million fixed rate debt obligation. Theheadline borrowing cost is 7.9% and the net effective borrowing cost, includingfees, is 8.3%. The annual borrowing costs are UK tax deductible. The Company currently intends to apply the net proceeds to the refinancing of anexisting £35million 8.3% headline fixed rate secured loan with 11 yearsunexpired term, thus releasing the property collateral for additional financingof an equivalent amount. For further information: Michael MarxDevelopment Securities PLC 020 7828 4777 Mallika BasuThe Communication Group PLC 020 7630 1411 This information is provided by RNS The company news service from the London Stock Exchange