Regional REIT has launched a retail bond with a view to pay down around £40m of debt.
No fixed amount has been set, although it is understood that the company is looking to raise funds to pay off zero-dividend preference shares due in January which will cost around £40m. These were acquired when the company bought a subsidiary of Conygar last year for £129m.
The six-year bond will provide a 4.5% fixed-rate yield. They will be eligible for investing in ISAs and SIPPs
The offer period will close at or before midday on 1 August.
Stephen Inglis, chief executive of London & Scottish Investments, the asset manager to Regional REIT, said: “We are delighted to now be able to offer another group of investors access to Regional REIT while also allowing us to diversify our funding arrangements. The launch of our debut bond marks an exciting stage in the continued development of the REIT.”
Peel Hunt is acting as manager of the issuance.
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