By Devika Patel
Knoxville, Tenn., Aug. 9 – Segro plc said it arranged a €300 million private placement of 10-year and 15-year senior unsecured notes. Santander Investment Securities Inc., Wells Fargo Securities LLC and Lloyds Securities Inc. are the agents.
The €100 million first-tranche note is due in 2028 and accrues interest at 1.82% per year.
The €200 million second-tranche note is due in 2033 and accrues interest at 2.37% per year.
The impact of these transactions is to extend Segro’s average debt maturity to 11.6 years and reduce the average cost of gross debt to 1.9%.
Proceeds will be used for general corporate purposes.
“The support we have received from our existing and new investors for our second U.S. private placement debt issue is a further endorsement of the strategy we are pursuing at Segro,” chief financial officer Soumen Das said in a press release. “It will increase Segro’s weighted average debt maturity and will further improve the natural currency hedge for our euro-denominated assets.”
Segro is a London-based real estate investment trust specializing in warehouses and light industrial properties.
| Issuer: | Segro plc
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| Issue: | Senior unsecured notes
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| Amount: | €300 million
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| Agent: | Santander Investment Securities Inc., Wells Fargo Securities LLC and Lloyds Securities Inc.
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| Pricing date: | Aug. 9
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| Distribution: | Private placement
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| First tranche
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| Amount: | €100 million
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| Maturity: | 2028
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| Coupon: | 1.82%
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| Second tranche
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| Amount: | €200 million
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| Maturity: | 2033
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| Coupon: | 2.37%
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