European secondary office specialist CLS Holdings is to close the offer period for its £50m retail bonds early after high demand from investors.
The offer period for the bonds, which started on 22 August, was scheduled to remain open for almost two weeks until 4 September, but will now close tomorrow (30 August).
The seven-year bond is priced at a fixed interest rate of 5.5% and is part of the listed firm’s strategy to diversify its funding sources.
It is the second company to launch a retail bond in recent months. In July, Harry Hyman’s healthcare REIT Primary Healthcare Properties raised £75m from a sale of seven-year bonds.
CLS’s bonds are expected to be issued on September 11, and are redeemable in December 2019.
The firm’s share price has risen around 10% in the past week, leading to the announcement on Friday that it was changing the terms of its share buy-back offer announced with its half-year results to the end of June.
The company had planned to buy back one for 71 shares at a price of 750p – which is equivalent to 10.5p a share – but the board has amended the tender offer to a buy-back of one in every 76 shares at a price of 805p a share.
CLS has a £942m portfolio in London, France, Germany and Sweden. It reported a 5.6% increase in net asset value to 869.1p a share in the first half of the year, thanks to high retained earnings and a revaluation surplus on Spring Mews in Vauxhall SE11, where planning was secured in May for a large mixed-use scheme.
Canaccord Genuity advised CLS.
Intermediate Capital Group announced on the London Stock Exchange this morning that it is discussing a possible retail bond issue with retail stockbrokers and wealth managers, and has appointed Canaccord Genuity to arrange meetings.
sophia.furber@estatesgazette.com
