Grainger has issued a 10-year £350m senior bond at a coupon of 3.375% to cut the cost of its debt.
Proceeds from the issue will be used to redeem the existing £275m corporate bond, which has a coupon of about 5% and matures in 2020.
Grainger said the refinancing will result in an annual interest saving of about £3m, reducing the cost of debt from 3.5% to 3.1%. The weighted average debt maturity will extend from 4.7 to 6.5 years if the bond’s extension options are exercised.
Vanessa Simms, chief financial officer, said: “The investor demand is a testament to the successful implementation of our strategy and our growing private rented sector portfolio, which strengthens our income return.
“The refinancing is an important milestone in extending our maturity profile and provides long-term interest rate certainty at an attractive coupon, reducing our annual interest costs by £3m.”
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