Great Portland Estates plc (“GPE”) announces that it has raised $200 million through a US private placement bond issue.
The placement was originally launched at $75 million and was more than five times oversubscribed, with GPE subsequently deciding to increase the issue to $200 million. The medium term unsecured US dollar notes have been fully hedged into sterling, providing GPE with £128 million of debt financing at a sterling weighted average fixed interest rate of 4.59%. This issue follows GPE’s successful inaugural £160 million private placement issue announced in May 2011 at a sterling weighted average fixed interest rate of 5.32%.
The issue consists of two tranches: $160 million 4.20% Senior Notes due 2019 and $40 million 4.82% Senior Notes due 2022. The notes were placed with a select group of institutional investors, more than half being new investors in GPE.
The issue was priced on 15 March, signed on 9 May and will close with funds drawn on 30 May 2012. RBS and Lloyds Bank acted as joint agents.