Debt issuance – Replacement
LONDON, June 23, 2022–(BUSINESS WIRE)–
The Issuer advises that the following replaces the Segro plc share issue announcement published at [10:00] TSB today.
The release has been updated with the correct title: Issue of Debt.
All other details remain unchanged.
The full patched version is shown below.
€225M DEBT ISSUE BY PRIVATE PLACEMENT IN THE UNITED STATES
SEGRO plc (“SEGRO” or “the Company”) has arranged a US private placement of €225 million of 15 and 20 year senior unsecured bonds (the “Bonds”) to a group of institutional investors.
The issue consists of two tranches, both drawn in September 2022:
€50 million at a fixed coupon of 3.87% maturing in 2037 (based on a euro mid-swap rate of 2.54% and a spread of 133 basis points); and
€175 million at a fixed coupon of 4.14% maturing in 2042 (based on a euro mid-swap rate of 2.44% and a spread of 170 basis points).
This translates into a weighted average coupon of 4.08% and a weighted average maturity of 18.9 years.
Pro forma for the position as of May 31, 2022, taking into account associated hedges and assuming debt is fully drawn down, SEGRO’s average debt maturity (on a transparent basis) is 8.6 years (March 31, 2022 : 7.8 years) and the average cost of gross debt is 1.7% (including equity joint ventures, excluding commitment fees and amortized costs) (March 31, 2022: 1.6%). The percentage of fixed-rate debt is 76% (March 31, 2022: 66%), or 93% including interest rate caps (March 31, 2022: 84%).
The net proceeds from the new issue of the US private placement will be used for general corporate purposes and the notes will rank pari passu with SEGRO’s existing unsecured bank indebtedness and US private placement.
Soumen Das, CFO of SEGRO, commented:
“The support we have received from our existing investors for our fourth US private placement debt issue is further endorsement of the strategy we are pursuing at SEGRO, which is reflected in particular in the long duration of the new bonds. will have a marginal impact on the average cost of debt, while increasing the percentage of debt that is fixed rate in times of interest rate volatility”.
For more information, please contact:
Soumen Das (CFO)
Tel: +44 (0) 20 7451 9110 / [email protected]
Harry Stokes (Commercial Finance Manager)
Tel: +44 (0) 20 7451 9124 / [email protected]
Gary Gaskarth (External Communications Manager)
Tel: +44 (0) 20 7451 9069 / [email protected]
Richard Sunderland / Ellie Sweeney / Eve Kirmatzis (FTI Consulting)
Tel: +44 (0) 20 3727 1000
SEGRO is a UK Real Estate Investment Trust (REIT), listed on the London Stock Exchange and Euronext Paris, and is a leading owner, manager and developer of modern warehouses and industrial properties. It owns or manages 9.6 million square meters of space (103 million square feet) worth £21.3 billion and serves clients from a wide range of industry sectors. Its properties are located in and around major cities and major transport hubs in the UK and seven other European countries.
For over 100 years, SEGRO has created the space that allows extraordinary things to happen. From modern, large-area warehouses, used primarily for regional, national and international distribution centers, to urban warehouses located near major population centers and business districts, it provides high-quality assets that enable its customers to thrive.
A commitment to be a force for societal and environmental good is integral to SEGRO’s purpose and strategy. Its responsible SEGRO framework focuses on three long-term priorities where the company believes it can have the greatest impact: championing low-carbon growth, investing in local communities and environments, and cultivating talent.
See www.SEGRO.com for more information.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220623005493/en/