GPE launches €178 mln bond issue

Great Portland Estates (GPE) plans to raise GBP 150 mln (€178 mln) through a new convertible bond issue, the company said on Tuesday.

The annual coupon for bondholders will be 1% and the bonds are due to mature in 2018.

The initial conversion price has been set at GBP 7.15 (€ 8.5) per share, representing a premium of 35% above the market average of the company’s shares.

Settlement of the issue is expected to take place on 10 September 2013.

GPE finance director Nick Sanderson said the low cost of the new debt testified to the company’s focus on prime London properties.

‘We are very pleased with the appetite investors have shown for this convertible bond which was significantly oversubscribed,' he said.

‘Our strong track record in accessing funding on competitive terms from a range of sources reflects our focused business strategy, prime central London property portfolio and conservative capital structure.’

JP Morgan Securities, Royal Bank of Scotland, Credit Suisse Securities and HSBC Bank are acting as joint bookrunners for the issue.

GPE was advised on the issue by Lazard.