Capital Shopping Centres has announced the launch of an offering of £300 mln (EUR 375 mln) of senior, unsecured convertible bonds due 2018 with an option to increase the offering by an additional £50 mln.
Capital Shopping Centres has announced the launch of an offering of £300 mln (EUR 375 mln) of senior, unsecured convertible bonds due 2018 with an option to increase the offering by an additional £50 mln.
In a statement on Thursday, the company said it intends to use the net proceeds of the offering to improve its financing flexibility by diversifying its funding sources; refinancing short-term borrowings; as well as positioning CSC to advance its development pipeline and make further acquisitions.
The bonds, which will have an expected maturity date of 4 October 2018, will be issued at par and are expected to carry a coupon of between 1.75% and 2.25% per annum payable semi-annually in arrear. They will be convertible into ordinary shares of the company, with the initial conversion price expected to be set at a premium of between 30% and 35% above the volume-weighted average price of the shares between launch and pricing.
UBS is acting as Sole Global Coordinator and BofA Merrill Lynch, Credit Suisse and UBS are acting as Joint Bookrunners. HSBC Bank is acting as Lead Manager. UBS and BofA Merrill Lynch are acting as corporate brokers and advisers to the company. Rothschild is acting as adviser.
