GPE agrees debt refi and W1 letting deal
Great Portland Estates has agreed to issue £100m in US private placement notes to a selection of institutional investors, in order to fund its recent buy back of a debenture note issued in 1999.
It offered to buy £142.9m of a 5.63% secured debenture that matures in January 2029 and received 85% take-up at a cash cost of £159.5m. It used cash from recent sales, but it will supplement this with the newly issued note.
Martin Leighton, director of corporate finance at GPE, said: “This refinancing replaces relatively expensive, secured debt with low-cost, unsecured debt from seven existing GPE lenders following the heavily oversubscribed USPP issue.”
Great Portland Estates has agreed to issue £100m in US private placement notes to a selection of institutional investors, in order to fund its recent buy back of a debenture note issued in 1999.
It offered to buy £142.9m of a 5.63% secured debenture that matures in January 2029 and received 85% take-up at a cash cost of £159.5m. It used cash from recent sales, but it will supplement this with the newly issued note.
Martin Leighton, director of corporate finance at GPE, said: “This refinancing replaces relatively expensive, secured debt with low-cost, unsecured debt from seven existing GPE lenders following the heavily oversubscribed USPP issue.”
The notes will be issued over 10-year, 12-year and 15-year maturities with an average fixed-rate coupon of 2.8%.
GPE has also let 23,700 sq ft in two lettings at its 37,400 sq ft development at 55 Wells Street, W1.
The new tenants will occupy the first and third to sixth floors and will pay rent of £2.1m. The scheme still has 5,100 sq ft of offices available on the second floor, alongside 4,200 sq ft of community space in the lower ground floor.
For the debt refinance, Lloyds Bank and Banco Santander acted as dealer managers for the tender offer. Lloyds Bank and NatWest Markets acted as joint active agents on the new issue.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette
