FINANCE: Capital & Counties has raised £150m from a group of five US institutional investors in a private placement.
The issue is made up of two tranches, £75m of 3.63% senior notes due in 2024 and £75m of 3.68% senior notes due in 2026.
Closing and funding of the transaction, which is being made by Capco Covent Garden, the holding company for the company’s Covent Garden assets, will take place in December.
Royal Bank of Scotland acted as sole placement agent for the transaction.
Following the deal, the company has an LTV of 10% and a weighted average cost of debt of 3.7%. Capco has £74m of cash, according to this morning’s interim management statement.
The company has completed £144m of acquisitions in the year to date following its purchase of 10 Bedford Street, WC2, for £67m.
Capco has completed 23 new leases and lease renewals since 30 June, resulting in a rental uplift of £2.9m.
Chief executive Ian Hawksworth said that the Earls Court Masterplan, an £8bn redevelopment, was progressing well and that the first phase of construction at Lillie Square was due to begin shortly.
