Derwent London PLC £250 Million US Private Placement (1314I)
November 22 2018 - 2:00AM
UK Regulatory
TIDMDLN
RNS Number : 1314I
Derwent London PLC
22 November 2018
Derwent London plc ("Derwent London" / "the Group")
DERWENT LONDON GBP250 MILLION US PRIVATE PLACEMENT
Derwent London announces that it has signed an agreement with
eight institutional investors for a private placement of GBP250
million new senior unsecured notes. The issue consists of four
tranches with maturities ranging between 7 and 15 years. The
weighted average coupon of the fixed rate notes equates to 2.89%
with a weighted average maturity of 10.8 years.
The four tranches, to be drawn on 31 January 2019, are: GBP55
million at 2.68% due 2026, GBP93 million at 2.87% due 2029, GBP50
million at 2.97% due 2031 and GBP52 million at 3.09% due 2034.
The issue was priced on 31 October 2018 and the note purchase
agreement signed on 21 November 2018. The funds will be used for
general corporate purposes and to refinance existing Group
indebtedness.
Barclays, HSBC, NatWest Markets and Wells Fargo acted as joint
placement agents.
Damian Wisniewski, Finance Director of Derwent London,
commented:
"We are very pleased with the support that this issue received
both from existing and new investors. With our recent credit rating
upgrade, a September 2018 loan-to-value ratio of 16.3% and strong
interest cover, the Group is well placed to fund its pipeline of
value-enhancing projects and to continue growing earnings. When
drawn in January 2019, the issue will increase our available
facilities and extend our weighted average debt maturity."
For further information, please contact:
Derwent London Damian Wisniewski, Finance Director
Tel: +44 (0)20 7659 3000 Jay Joshi, Treasurer
Quentin Freeman, Head of Investor Relations
Brunswick Group Nina Coad
Tel: +44 (0)20 7404 5959 Emily Trapnell
Notes to editors
Derwent London plc
Derwent London plc owns 87 buildings in a commercial real estate
portfolio predominantly in central London valued at GBP5.0 billion
(including joint ventures) as at 30 June 2018, making it the
largest London-focused real estate investment trust (REIT).
Our experienced team has a long track record of creating value
throughout the property cycle by regenerating our buildings via
development or refurbishment, effective asset management and
capital recycling.
We typically acquire central London properties off-market with
low capital values and modest rents in improving locations, most of
which are either in the West End or the Tech Belt. We capitalise on
the unique qualities of each of our properties - taking a fresh
approach to the regeneration of every building with a focus on
anticipating tenant requirements and an emphasis on design.
Reflecting and supporting our long-term success, the business
has a strong balance sheet with modest leverage, a robust income
stream and flexible financing.
Landmark schemes in our 5.5 million sq ft portfolio include
White Collar Factory EC1, Angel Building EC1, The Buckley Building
EC1, 1-2 Stephen Street W1, Horseferry House SW1 and Tea Building
E1.
In 2018 to date the Group has won Property Week Property Company
of the Year and EG Offices Company of the Year, whilst White Collar
Factory scooped RIBA National and London awards, RICS National and
London awards, two BCO awards for Commercial Workplace and
Innovation, an EG Creative Places award and an NLA Wellbeing award.
25 Savile Row also won RIBA National and London awards and SKA Gold
for the fit-out. In 2017 the Group collected the Property Week
Developer of the Year award and EG Offices Company of the Year and
won further awards from RIBA, Civic Trust and BCO. In 2013 Derwent
London launched a voluntary Community Fund and has to date
supported 70 community projects in Fitzrovia and the Tech Belt.
The Company is a public limited company, which is listed on the
London Stock Exchange and incorporated and domiciled in the UK. The
address of its registered office is 25 Savile Row, London, W1S
2ER.
For further information see www.derwentlondon.com or follow us
on Twitter at @derwentlondon
Forward-looking statements
This document contains certain forward-looking statements about
the future outlook of Derwent London. By their nature, any
statements about future outlook involve risk and uncertainty
because they relate to events and depend on circumstances that may
or may not occur in the future. Actual results, performance or
outcomes may differ materially from any results, performance or
outcomes expressed or implied by such forward-looking
statements.
No representation or warranty is given in relation to any
forward-looking statements made by Derwent London, including as to
their completeness or accuracy. Derwent London does not undertake
to update any forward-looking statements whether as a result of new
information, future events or otherwise. Nothing in this
announcement should be construed as a profit forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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