Extra MSA Group has completed a £220m private bond issue on its Abraham Portfolio, which contains nine motorway service area properties.
Extra is majority owned by Evergreen, an investment partnership managed by London-based M3 Capital Partners, and owns a total of 18 motorway service areas.
The newly secured bond issue has a 10-year term with a fixed annual coupon of less than 3.7%.
The proceeds have been used by Extra to refinance existing bank funding, return funds to equity holders and support further growth of the business.
Through real estate investment manager Aalto Invest, the bonds have been placed with a consortium of long-term institutional investors comprising Rothesay Life, Dongbu Insurance and Dongbu Asset Management, along with one other UK institution. Aalto Invest will act as loan manager for the term of the bonds.
Extra MSA group chief executive Andrew Long said: “The calibre of the three global investors underlines both the quality of Extra’s property assets and its tenant base, as well as Extra’s ability to pro-actively manage a secure income stream in this specialist sector, with further ongoing long-term income growth potential.”
Stephen Eighteen, Aalto Invest’s head of origination, added: “This financial transaction allows the company to diversify sources of debt funding and extend the maturity of its overall debt profile.”
