Land Securities’ £100m debenture
Land Securities this week followed the lead of a number of smaller companies in the property sector with a £100m 10% first mortgage debenture.
The issue is being placed in either registered or bearer form, rather than registered, to avoid stamp duty. Duty was imposed in the Budget and is seen as a considerable problem to companies wishing to raise domestic long-term stocks.
Great Portland Estates also opted for the bearer form. Other substantial issues have been made into the Euromarkets rather than the domestic market.
The Land Securities stock is dated 2055 and represents a further tranche on the £100m of stock issued last November. That stock was issued in registered form but, like the latest issue, will have the option of bearer certificates.
The gross redemption yield was set at a fine 0.55% over 13.5% Treasury 2004/08. It was priced at £105.523 per cent to provide a gross redemption yield of 9.46%.
