Klépierre (rated BBB+ with stable outlook by Standard & Poors) has issued a 10-year bond due March 16, 2016, paying a coupon rate of 4.25%. The margin has been set at 70bps above the 10-year swap rate.
In response to significant oversubscription, Klépierre decided to raise the face value of the bond to €700 million (versus the originally contemplated sum of 500-600 million). All of the subscribers are buy and hold investors from 10 different countries, including France (for more than half), Germany, the United Kingdom and Switzerland. Insurance companies and asset managers were the main subscribers, with banks picking up less than 10%.
The transaction is being co-managed by BNP Paribas, HSBC and Royal Bank of Scotland. The bonds will be listed on the Luxembourg Stock Market.
Klépierre will use the proceeds to refinance bank loans falling due in 2006 and to meet the funding needs generated by its investment program.
With the completion of this transaction, the average maturity of Klépierres debt increases from 5.3 years to 6.1 years (including the back-up line).
We would like to sincerely thank the investors who have demonstrated their confidence in Klépierre by over-subscribing our third bond issue, commented Klépierre Chairman Michel Clair. This success offers further proof of Klépierres ability to attract long-term funding for the major investment program we have announced for the next five years.