By Marisa Wong
Los Angeles, June 23 – Segro plc has arranged a U.S. private placement of €225 million 15- and 20-year senior notes with a group of institutional investors, according to a press release.
The issue consists of two tranches, both of which will be drawn down in September:
• €50 million of 3.87% notes due 2037, priced based on the euro mid-swap rate of 2.54% and a spread of 133 basis points; and
• €175 million of 4.14% notes due 2042, priced based on the euro mid-swap rate of 2.44% and a spread of 170 bps.
This translates to a weighted average coupon of 4.08% and a weighted average maturity of 18.9 years, according to the release.
Pro forma for the position as of May 31, taking into account associated hedging and assuming that the debt is fully drawn, Segro’s average debt maturity is 8.6 years, and the average cost of gross debt is 1.7%. The percentage of fixed-rate debt is 76%, or 93% including interest rate caps.
Proceeds from the private placement will be used for general corporate purposes, and the notes will rank pari passu with Segro’s existing unsecured bank, bond and U.S. private placement debt.
Segro is a London-based real estate investment trust.
| Issuer: | Segro plc
|
| Amount: | €225 million
|
| Issue: | Senior notes
|
| Announcement date: | June 23
|
| Distribution: | Private placement
|
|
|
| 15-year tranche
|
| Amount: | €50 million
|
| Maturity: | 2037
|
| Coupon: | 3.87%
|
| Spread: | Euro mid-swaps plus 133 bps
|
|
|
| 20-year tranche
|
| Amount: | €175 million
|
| Maturity: | 2042
|
| Coupon: | 4.14%
|
| Spread: | Euro mid-swaps plus 170 bps
|
|
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