SEGRO has agreed a €650m private placement debt issue from 13 US institutional investors.
The proceeds will be used to refinance SEGRO’s 2018 sterling bonds and secured debt within the Airport Property Partnership, a joint venture with Aviva Investors. SEGRO bought Aviva’s 50% stake in the partnership in March following its £573m rights issue.
The issue, SEGRO’s first US private placement debt issue, has a weighted average coupon of 1.9% and a weighted average maturity of 11.2 years. It consists of three tranches:
·€400m at a fixed coupon of 1.77% due 2027;
·€150m at a fixed coupon of 2% due 2029; and
·€100m at a fixed coupon at 2.27% due 2032
Soumen Das, chief financial officer of SEGRO, said: “The support we have received from our investors for our inaugural, and well over-subsscribed, US private placement debt issue is a further endorsement of the strategy we are pursuing at SEGRO”
The facility increases the company’s weighted average debt maturity to eight years.
Lloyds Securities and Barclays Bank acted as joint placement agents.
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