FINANCE: Student housing provider UPP has raised £149.7m after tapping the bond market.
The proceeds of the new tranche of debt will be used to refinance the operational assets of UPP (Exeter), which operates 2,569 beds for the University of Exeter.
Macquarie Capital advised on the deal, which will see UPP (Exeter) join the six other asset companies that composed its debut issuance in Q1 2013.
The new finance will increase the quantum of notes issued under the bonds programme to date to £531.8m.
The notes were allocated to Allianz Global Investors (£119.7m) and Pension Insurance Corporation (£30m).
Sean O’Shea, chief executive of UPP, said: “In completing this transaction UPP will have deployed £1bn to fund UK university infrastructure over the last three years. Attracting Allianz Global Investors and Pension Insurance Corporation to this tranche demonstrates the considerable appetite in the market for secure investment grade rated infrastructure assets.”
Barclays and RBS were arrangers on the bond.
