EUR 650 MILLION US PRIVATE PLACEMENT DEBT ISSUE

RNS Number : 3649K

SEGRO PLC

06 July 2017

 

6 July 2017

€650 MILLION US PRIVATE PLACEMENT DEBT ISSUE

SEGRO plc ("SEGRO" or "the Company") has signed an agreement with 13 US institutional investors for a private placement of €650 million 10 year, 12 year and 15 year senior unsecured notes.

The issue consists of three tranches: €400 million at a fixed coupon of 1.77 per cent due 2027, €150 million at a fixed coupon of 2.00 per cent due 2029, and €100 million at a fixed coupon of 2.27 per cent due 2032. This translates to a weighted average coupon of 1.90 per cent and a weighted average maturity of 11.2 years.

The proceeds will be used to refinance the 2018 sterling bonds and secured debt within the Airport Property Partnership. Closing and funding of the transaction will occur in August 2017. The new issue will rank pari passu with SEGRO's existing unsecured bank and bond debt.

Soumen Das, Chief Financial Officer of SEGRO, commented: "The support we have received from our investors for our inaugural, and well over-subscribed, US private placement debt issue is a further endorsement of the strategy we are pursuing at SEGRO. It will increase SEGRO's weighted average debt maturity to 8 years and, once drawn, will improve the Company's overall cost of debt. In addition, it broadens the range of SEGRO's debt providers and creates a greater natural currency hedge for our euro-denominated assets."

Lloyds Securities Inc and Barclays Bank PLC acted as Joint Placement Agents.

ENDS

For further information, please contact:

SEGRO plc

Soumen Das (Chief Financial Officer)

Tel: [phone] / [e-mail]

Harry Stokes (Head of Investor Relations and Research)

Tel: [phone] / [e-mail]

Allyson Andrews (External Communications Manager)

Tel: [phone] / [e-mail]

Richard Sunderland / Claire Turvey (FTI Consulting)

Tel: [phone]

Notes to Editors:

ABOUT SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 6.4 million square metres (69 million square feet) of space valued at £8 billion, serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in nine other European countries. See www.SEGRO.com for further information.

 

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