Prop. Securitised Bond Offer
PEEL HOLDINGS PLC
11 October 1999
Press Release
Peel Holdings p.l.c.
Proposed securitised bond offering
Peel Holdings p.l.c., advised by N M Rothschild & Sons Limited, announced
today that it intends to proceed with a ca.£600 million multi tranche
securitised bond offering to be secured against the future rental income from
its wholly owned subsidiary, The Trafford Centre. Peel will retain a 100 per
cent equity interest in the centre.
Deutsche Bank will act as lead manager and bookrunner for the securitisation.
The structure of the issue comprises several tranches of fixed and floating
rate medium and long terms notes. It is the intention to market the issue
over the coming weeks and to launch the transaction after an investor
roadshow.
The net proceeds after the expenses of the issue will be used to repay
approximately £340 million of existing debt (currently bearing interest at 9.3
per cent.), to pay certain costs associated with the early repayment of these
loans and to provide funds for the further development of the Peel group.
This will include continued investment in its airports and other capital and
investment projects. In accordance with the authorities given by
shareholders, Peel may also continue to buy-in shares for cancellation when
the Directors believe that to do so is in the best interests of shareholders
generally.
The Trafford Centre comprises 1.36 million sq. ft. of shops, restaurants and
leisure facilities including a 20 screen multiplex cinema, making it one of
the largest retail and leisure schemes in the country. Anchor tenants include
Selfridges, Debenhams, BHS, Boots and C&A. Opened in September 1998, the
Centre is approximately 4 miles west of Manchester City Centre adjacent to the
M60 motorway. It benefits from one of the largest and most densely populated
catchment areas and the highest design specifications of any shopping centre
in the UK. The Centre was independently valued on 31st March 1999 at £855
million.
Enquiries
Peel
Peter Scott, Managing Director, 0161 888 8208
N M Rothschild
Stephen Louis, Director, 0171 280 5711
Richard Bailey/Peter Bates, 0161 827 3800
Deutsche Bank
Lemy Gresh, Managing Director, 0171 547 3339
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