SEGRO has completed the launch and pricing of £750m of bonds and bought back sterling bonds across four tranches equal to £550m at a cash cost of £677m.
SEGRO has also launched and priced a £350m bond with a maturity of 12 years paying a coupon of 2.375% and a £400m bond with a maturity of 20 years paying a coupon of 2.875%.
The weighted average maturity of debt increases by three years to 10.8 years and the firm will benefit from a £10m saving from reduced interest costs. The loan-to-value will increase by 1% to 30%.
Soumen Das, SEGRO’s chief financial officer, said: “We are delighted with the support we have received from our long-term sterling bond investors on both the tender and the highly over-subscribed new issue. The success of this transaction is a further endorsement of SEGRO’s strategy, and allows us to strengthen our balance sheet by extending our debt maturity and reducing our average cost of debt.”
Banco Santander, HSBC Bank and Lloyds Bank acted as dealer managers on the tender offer; The Royal Bank of Scotland acting as co-dealer manager.
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