Unite Group PLC Convertible Bond Optional Redemption Notice (3406F)
17 May 2017 - 1:58AM
UK Regulatory
TIDMUTG
RNS Number : 3406F
Unite Group PLC
16 May 2017
THE UNITE GROUP PLC
("Unite Students", "Unite", the "Group", or the "Company")
UNITE STUDENTS CALLS GBP89.9M 2.50% CONVERTIBLE BONDS DUE
2018
Unite Students, the UK's leading manager and developer of
student accommodation, announces today that it has started a
process to redeem the convertible bonds due 2018 (the "Bonds")
issued by Unite Jersey Issuer Limited (the "Issuer"), a
wholly-owned subsidiary of Unite Students. The Bonds were issued in
2013 and are due to mature in 2018, but Unite has exercised its
right to redeem the Bonds early based on recent share price
performance. Prior to redemption, Bondholders may exercise their
right to convert the Bonds into ordinary shares of Unite Students.
The last day on which Bondholders may exercise this conversion
right is Wednesday 21 June 2017. If all investors take up their
right to convert their bonds into equity, the Group's LTV will fall
from 35% to 31% on a proforma basis. There will be no meaningful
impact on 2017 Net Asset Value or earnings per share.
The Issuer has sent a notice to redeem all of the outstanding
Bonds on Monday 3 July 2017 at their principal amount together with
any accrued but unpaid interest. As at the date of this notice,
GBP78.7m of the Bonds remain outstanding.
The Bonds were issued on 10 October 2013, paying a coupon of
2.5% per annum and with a final maturity date of 10 October 2018.
The initial conversion price of 509.73 pence per ordinary share
represented a premium of 35% above the volume weighted average
price of the Company's ordinary shares from launch to pricing and a
premium of 41% above the Group's reported NAV per share at the
time. As a result of adjustments during the life of the Bonds, the
conversion price currently in effect is 482.88 pence per ordinary
share. Unite's share price at the close of business on 15 May 2017
was 646.5 pence.
The Issuer is entitled to exercise this early redemption option
in accordance with the Terms and Conditions of the Bonds as a
result of the Parity Value having equalled or exceeded GBP130,000
on at least 20 of the 30 consecutive dealing days up to and
including 15 May 2017. If conversion rights are exercised in
respect of all outstanding Bonds, it would lead to the issue of up
to 16,298,045 ordinary shares.
-ENDS-
For further information, please contact:
Unite Students
Joe Lister, Chief Financial Officer Tel: +44 117
Paul Richmond, Corporate Affairs 302 7005
Director
Bell Pottinger
Victoria Geoghegan Tel: +44 203
Nick Lambert 772 2562
Elizabeth Snow
Notes to editors:
About Unite Students
Unite Students is the UK's largest and most established manager
and developer of purpose-built student accommodation. It provides a
home for around 50,000 students, in more than 140 properties,
across 28 leading university cities in England and Scotland. Unite
works in partnership with more than 60 Higher Education
institutions and also lets rooms directly to students.
Unite's purpose is to provide a home to its culturally-diverse
customers, offering them a strong foundation for academic and
personal success. The accommodation is high quality, safe and close
to university campuses, transport links and local amenities.
Students live in ensuite study bedrooms with rents covering all
bills, insurance, 24-hour security, fortnightly cleaning of
communal kitchens and bathrooms and high speed Wi-Fi.
Founded in 1991 in Bristol, The Unite Group plc is a FTSE250
company, listed on the London Stock Exchange, employing more than
1,250 people. It pursues a sustainable growth strategy, designed to
make the most of the resilient nature of the student accommodation
sector. Unite is focused on maintaining its position as the leading
provider of student accommodation in the UK, by having the best
brand, operating the highest quality portfolio and maintaining the
strongest capital structure in the sector. This is achieved with
consistent investment in, and improvement to, the operating
platform; highly selective development activity and asset
management initiatives.
Unite is invested in and operates a two specialist funds and
joint ventures with institutional investment partners, the GBP2
billion Unite UK Student Accommodation Fund (USAF) and the GBP1
billion London Student Accommodation Vehicle (LSAV).
Unite is the founder and major donor of the Unite Foundation.
Since 2012 this has provided free student accommodation and
financial support to 160 young people in the UK who lack family
support.
For more information you can visit Unite's corporate website
www.unite-group.co.uk, the student site www.unite-students.com or
the Unite Foundation www.unitefoundation.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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