TIDMSHB
RNS Number : 0255M
Shaftesbury PLC
07 October 2016
Confirmation of issue of GBP285,000,000 2.487%
Guaranteed First Mortgage Bonds due 2031
Redemption of GBP61,048,148 8.5% First Mortgage
Debenture Stock due 2024
Shaftesbury PLC (the "Company") confirms that Shaftesbury
Carnaby PLC, a wholly-owned subsidiary of the Company, has today
issued GBP285 million of Guaranteed First Mortgage Bonds with a
coupon of 2.487% and maturity in September 2031 (the "Bonds"). The
Bonds are secured on properties held by Shaftesbury Carnaby PLC and
benefit from an unsecured guarantee from the Company.
The Bonds are expected to be admitted to listing on the Official
List of the Financial Conduct Authority and to trading on the Main
Market of the London Stock Exchange on 10 October 2016. Further
details of the Bonds are contained in a prospectus dated 5 October
2016 which is available for inspection at the UK Listing
Authority's Document Viewing Facility, via the National Storage
Mechanism.
On issue of the Bonds, the Company's existing GBP61,048,148 8.5%
First Mortgage Debenture Stock due 2024 (the "Stock") was redeemed
in full, being satisfied by existing holders of the Stock
exchanging their Stock for Bonds, or taking cash. The premium for
redeeming the Stock was approximately GBP31.1 million, equating to
a reduction in the Company's EPRA NAV of 11 pence per share. The
net proceeds of the issue of the Bonds, after deducting the
redemption cost and expenses, amounted to approximately GBP189.4
million.
The issue significantly increases our financial resources for
further investment in our portfolio, whilst lengthening our
weighted average debt maturity to 10.8 years.
Initially, the net proceeds have reduced drawings under our
revolving credit facilities, which are available to be re-drawn.
The current marginal cost of these facilities is approximately 1.5%
p.a. The initial reduction in our blended cost of drawn debt is 25
basis points, but as the new funds are deployed, drawings against
our revolving credit facilities will reduce the blended cost
further. If all contracted facilities were fully drawn, the blended
cost of debt would fall by a further 65 basis points.
As previously announced, we anticipate utilising some of the
proceeds, over time, to cancel interest rate swaps with a notional
principal of up to GBP55 million, which will further reduce our
blended cost of debt. The associated cost will depend upon timing
and the amount of the swaps cancelled, and will be advised in due
course.
Chris Ward, Finance Director, said, "We are pleased to have
completed this refinancing of our existing debenture stock.
Long-term finance is a natural fit with our long-term business
model and portfolio of good quality assets in London's West End,
which produce a resilient, and growing, income stream.
At a historically low coupon, the issue has reduced our cost of
debt. As well as raising significant resources for further
investment in our portfolio, it has diversified our sources of
funding and extended our weighted average debt maturity. "
Invesco Asset Management Limited as agent for and on behalf of
its discretionary managed clients has acquired GBP27,407,500 of new
first mortgage bonds. This transaction is disclosed in accordance
with LR11.1.10R.
IDCM Limited and Lloyds Bank plc acted as managers in respect of
the issue of the Bonds.
7 October 2016
For further information:
Shaftesbury PLC Capital Access Group
0207 333 8118 0203 763 3400
Brian Bickell, Chief Executive Simon Courtenay
Chris Ward, Finance Director
About Shaftesbury
Shaftesbury PLC is a Real Estate Investment Trust, which owns a
unique real estate portfolio extending to 14 acres in the heart of
London's West End - a highly popular, sought-after and prosperous
destination for visitors and businesses. Our holdings are
concentrated in Carnaby, Covent Garden, Chinatown, Soho and
Charlotte Street.
Our objective is to deliver long-term growth in rental income,
capital values and shareholder returns.
We focus on retail, restaurants and leisure in the liveliest
parts of the West End. Our portfolio comprises nearly 600 shops,
restaurants, cafés and pubs, extending to 1 million sq. ft., and
accounting for 70% of our current income. In our locations these
uses have a long record of occupier demand exceeding their
availability. The portfolio also includes circa. 400,000 sq. ft. of
offices and 542 apartments for rent, which provide 17% and 13%,
respectively, of our current income.
In addition, we have a 50% interest in the Longmartin joint
venture with The Mercers' Company, which has a long leasehold
interest in St Martin's Courtyard in Covent Garden. Extending to
1.9 acres, it includes 21 shops, ten restaurants and cafés, 102,000
sq. ft. of offices and 75 apartments.
Our proven management strategy is to create and foster
distinctive, attractive and prosperous locations. Its
implementation is supported by an experienced management team with
an innovative approach to long-term, sustainable income and value
creation, and a focus on shareholder returns. We have a strong
balance sheet with modest leverage.
Forward-looking statements
This document may contain certain 'forward-looking' statements.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Actual outcomes and results may differ materially from any outcomes
or results expressed or implied by such forward-looking
statements.
Any forward-looking statements made by, or on behalf of,
Shaftesbury PLC speak only as of the date they are made and no
representation or warranty is given in relation to them, including
as to their completeness or accuracy or the basis on which they
were prepared. Shaftesbury PLC does not undertake to update
forward-looking statements to reflect any changes in its
expectations with regard thereto or any changes in events,
conditions or circumstances on which any such statement is
based.
Information contained in this document relating to Shaftesbury
PLC or its share price, or the yield on its shares, should not be
relied upon as an indicator of future performance.
THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO BUY OR THE
SOLICITATION OF AN OFFER TO SELL THE STOCK OR BONDS DESCRIBED
HEREIN.
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END
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