The British Land Company PLC announces the launch of an offering of £350 mln (approx. €485 mln) of senior, unsecured Convertible Bonds due in 2020.
The Company intends to use the net proceeds of the offering to fund the £210 mln (approx. €291 mln) acquisition of One Sheldon Square, Paddington Central in April 2015, the £135 mln (approx. €187 mln) acquisition of Surrey Quays Leisure Park, Canada Water in March 2015, and to fund committed development spending.
The £210 mln (approx. €291 mln) acquisition of One Sheldon Square was a strategic acquisition to increase British Land’s ownership interest at its Paddington Central office-led campus. One Sheldon Square is fully let on a total annual contracted rent of £9 mln (approx. €12 mln). Positioned at the entrance to the campus, it gives the Company control over a key point of access to Paddington Central.
The Surrey Quays Leisure Park acquisition completes a 46 acre site at Canada Water, assembled in four transactions over five years. This is one of the most important regeneration projects in London which could comprise up to 650,321 m² (gross floor area) of office, retail, residential, leisure and community space alongside significant public realm.
The Bonds will, subject to the satisfaction of certain conditions, be convertible into ordinary shares of the Company. The initial conversion price is expected to be set at a premium of between 20% and 27.5% above the volume weighted average price of the Shares between launch and pricing.
The Shares underlying the Bonds represent approximately 3.08% - 3.28% of the Company's issued share capital immediately prior to the offering. Under the terms of the Bonds the Company will have the right to elect to settle any conversion entirely in shares, cash or a combination of shares and cash.
If not previously converted, redeemed or purchased and cancelled, the Bonds will be redeemed at par on 9 June 2020. The Company will have the right to elect to settle redemption of the Bonds on the maturity date entirely in cash, shares or with a combination of cash and shares. The Issuer will have the option to call all outstanding Bonds at par plus accrued interest at any time on or after 30 June 2018 if the aggregate value of the underlying Shares per Bond trade for a specified period of time at 130% or more of the principal amount of the Bonds. The final terms of the Bonds are expected to be announced today and settlement is expected to take place on or about 9 June 2015.
Source: British Land