Grosvenor Limited (the 'Company') has raised £90 million (approx. 115 million) through an issue of long-term unsecured loan notes. This follows a successful issue of £125 million (approx. 159 million) in early 2011.
The bond issue further diversifies the Company's funding sources and will help finance forthcoming investment in its London Estate.
The issue was priced on Wednesday 18th July to yield 3.91%. Closing is expected in October 2012.
The Company, the Britain and Ireland business of Grosvenor, the international property group, placed the issue in the US private placement market to a select group of investors based both in London and the US.
Roger Blundell, Finance Director of Grosvenor Britain & Ireland, said:
"We monitor all funding sources available to us and look to access the best market for our needs at the right time. With interest rates remaining very competitive, we felt this was a good moment to follow-on from our successful issue last year with another private placement.
"The funds will be principally used to continue our program of investment and development in the London estate. We are delighted that investors have shown appetite for this issue; attracted by our conservative financing, low gearing and the strength of our covenant."
The financing, which was fully denominated in sterling, consists of £60 million (approx. 76 million) of 10-year notes maturing in 2022 with a coupon of 3.38% (Gilts + 190bps) and £30 million (approx. 38 million) of 25-year notes maturing in 2037 with a coupon of 4.97% (Gilts + 220bps).
RBS acted as sole book-runner on the deal.
Source: Grosvenor Limited