Unite Students has launched a £125m bond issue as part of an existing debt programme.
The bonds will be issued at a 3.921 coupon due in June 2025 with an implied yield of 2.744%.
Issued at a premium, the company will use the £137m raised to repay secured debt due in the coming year and fund future growth in the platform.
The bonds are A-rated by S&P Global and Asf by Fitch and in line with a 2013 issue giving an LTV of 47%. In total, the debt from the bond issue will represent 4% of the company’s total debt.
The debt maturity in Unite following the issue will extend to eight years from seven and reduce debt costs to 3.4% from 3.5%.
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