Workspace Group PLC Private Placement of £200m (3648M)
28 July 2017 - 4:00PM
UK Regulatory
TIDMWKP
RNS Number : 3648M
Workspace Group PLC
28 July 2017
28 July 2017
Workspace GROUP PLC
PRIVATE PLACEMENT OF GBP200M
Workspace Group PLC ('Workspace' or the 'Group') announces that
it has priced a GBP200m private placement comprised of GBP80m
eight-year notes and GBP120m 10-year notes. This Sterling
denominated unsecured debt has a weighted average maturity of 9.2
years and a blended fixed rate coupon of 3.14%.
The new notes will be placed with eight UK and US institutional
investors, including four new lenders to Workspace, and have the
same financial covenants as the Group's other debt facilities. All
agreements are subject to final documentation with the transaction
expected to complete on 16 August 2017. The proceeds will be used
to fund the Group's investment plans.
The private placement together with the additional GBP100m
five-year revolver facility provided by our bank lending syndicate
in June 2017 will increase the Group's debt facilities to GBP665m.
The 364-day revolver facility also provided by our bank lending
syndicate in June 2017 will be cancelled when the private placement
transaction completes.
On a proforma basis, based on the drawn debt at 30 June 2017,
the Group's weighted average interest rate following completion of
the private placement would be approximately 4.3% (Year to 31 March
2017: 5.2%), with GBP229m of cash and undrawn facilities at a
marginal interest rate of 1.8%.
NatWest Markets, Santander and HSBC acted as joint active agents
on the new issue.
Graham Clemett, Chief Financial Officer of Workspace
commented:
"We are delighted with investor appetite for this private
placement issue, a strong endorsement of the Group's business
strategy and investment plans. The new notes will enable us to
capitalise on current low interest rates, secure longer term
funding for the Group at a low cost, and put us in a strong
liquidity position."
- Ends -
For further information, please contact:
Workspace Group PLC 020 7138 3300
Graham Clemett, Chief Financial Officer
Clare Dundas, Head of Corporate Communications
Edelman 020 3047 2546
John Kiely
Mav Wynn
Rob Yates
Notes to Editors
About Workspace Group PLC:
Workspace (WKP) is a FTSE 250 listed Real Estate Investment
Trust and a member of the European Public Real Estate
Association.
Established in 1987, and listed on the London Stock Exchange
since 1993, Workspace owns and manages more than 3.7 million sq.
ft. of business space across 69 London properties. We are home to
some 4,000 businesses including some of London's fastest growing
and established brands across a wide range of sectors.
Workspace is geared towards helping businesses perform at their
very best. The Workspace Advantage is our unique customer offer and
is open to all - we provide inspiring, flexible work spaces with
super-fast technology in dynamic London locations.
The way businesses work is changing. That's why we continually
invest in providing the technology infrastructure that enables our
customers to think and move fast, and alongside their working
environment, is tailored to each individual business.
For more information on Workspace, please visit
www.workspace.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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