Derwent London is pleased to announce the pricing of a sterling denominated senior unsecured bond (the "Bonds") for an aggregate principal amount of £250m and a term of 7 years. The Bonds will be quoted on the Official List of the UK Listing Authority and admitted to trading on the Main Market of the London Stock Exchange. They will bear interest at a rate of 5.25%, reflecting a credit spread of 105bp, and are expected to be rated A- by Fitch Ratings Ltd.
The net proceeds of the Bonds will initially be used to repay amounts drawn under the Group's revolving credit facilities and to refinance near-term debt maturities. Proceeds will also be deployed into our extensive development pipeline. Our next major project at Holden House W1 is expected to commence later this year, with forecast capital expenditure of £150m.
Damian Wisniewski, Chief Financial Officer of Derwent London, said:
“We are delighted by the strong support for our bond which has seen Derwent London obtain £250m of 7-year unsecured debt at an attractive credit spread. This transaction will extend our weighted average debt maturity on a proforma basis to approximately 5 years.”
Barclays, HSBC and NatWest Markets acted as Joint Active Bookrunners and Wells Fargo Securities as Passive Bookrunner. Rothschild & Co advised on the transaction.