Grainger PLC Grainger plc bond pricing (5190L)
April 19 2018 - 10:57AM
UK Regulatory
TIDMGRI
RNS Number : 5190L
Grainger PLC
19 April 2018
LEI: 2138007CEIRKZMNI2979
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014
THIS ANNOUNCEMENT IS NOT FOR PUBLICATION, DISTRIBUTION OR
RELEASE, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (OR TO U.S.
PERSONS), AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR IN ANY OTHER
JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY
APPLICABLE LAW
19 April 2018
Grainger plc
Grainger plc reduces debt cost and extends maturity profile with
GBP350 million senior secured bond
Grainger plc (the "Group"), the UK's largest listed residential
landlord, has priced a GBP350m sterling-denominated senior secured
bond at a coupon of 3.375% for 10 years. The bond was rated BBB- by
S&P.
The net proceeds from the issue of the Notes will be used to
redeem the existing corporate bond (GBP275m at a coupon of c.5%)
that matures in 2020, and for general corporate purposes.
In line with the Group's financing strategy, the refinancing
achieves both a reduction in cost of debt and an extension of its
maturity profile. The pro forma impact of this refinancing on the
Group's financial metrics is as follows:
-- An annual interest saving of c.GBP3m, reducing the cost of
debt from 3.5% to 3.1%.
-- Weighted average debt maturity is extended from 4.7 years to
6.5 years, assuming extension options are exercised. Excluding
extension options 5.8 years.
-- The estimated prepayment cost net of tax for the existing
corporate bond is GBP21m which would result in EPRA NAV reducing by
5 pence per share. The impact on EPRA NNNAV is expected to be
negligible.
Vanessa Simms, Chief Financial Officer, said:
"We are delighted by the response to this bond issuance. The
investor demand is a testament to the successful implementation of
our strategy and our growing Private Rented Sector (PRS) portfolio
which strengthens our income return.
The refinancing is an important milestone in extending our
maturity profile and provides long-term interest rate certainty at
an attractive coupon, reducing our annual interest costs by
GBP3m."
Barclays Bank plc, HSBC Bank plc and The Royal Bank of Scotland
plc (trading as NatWest Markets) acted as joint active
bookrunners.
The manufacturer target market for the purpose of MIFID II
product governance is eligible counterparties and professional
clients only (all distribution channels). No PRIIPs key information
document (KID) has been prepared as the Bonds are not available to
retail in EEA.
This announcement is not an offer of the Bonds in the United
States or any other jurisdiction. Securities may not be offered or
sold in the United States absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended (the
"Securities Act").
This communication does not constitute an offer of the Bonds to
the public in the United Kingdom. This communication is being
distributed to and is directed only at (i) persons who are outside
the United Kingdom or (ii) persons who are investment professionals
within the meaning of Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") and
(iii) high net worth entities, and other persons to whom it may
lawfully be communicated, falling within Article 49(2)(a) to (d) of
the Order (all such persons together being referred to as "Relevant
Persons"). Any investment activity to which this communication
relates will only be available to and will only be engaged with,
Relevant Persons. Any person who is not a Relevant Person should
not act or rely on this document or any of its contents.
A securities rating is not a recommendation to buy, sell or hold
securities and may be subject to revision or withdrawal at any
time.
This announcement is an advertisement and not a prospectus for
the purposes of Directive 2003/71/EC, as amended.
THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES OR TO OR FOR THE ACCOUNT
OF U.S. PERSONS (EACH AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT ("REGULATION S")). THE BONDS HAVE NOT BEEN AND WILL
NOT BE REGISTERED IN THE UNITED STATES UNDER THE SECURITIES ACT,
AND MAY NOT BE OFFERED, SOLD OR DELIVERED IN THE UNITED STATES (AS
SUCH TERM IS DEFINED IN REGULATION S) OR TO OR FOR THE ACCOUNT OF
U.S. PERSONS (AS SUCH TERM IS DEFINED IN REGULATION S) UNLESS THE
BONDS ARE REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IS
AVAILABLE.
FCA/ICMA stabilisation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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