Hercules Unit Trust has announced that Canada Pension Plan Investment Board, a major global investor, has made a £100 mln capital investment into the Trust.
Hercules Unit Trust has announced that Canada Pension Plan Investment Board, a major global investor, has made a £100 mln capital investment into the Trust.
CPPIB has invested in HUT through its subscription for £100 mln of subordinated Convertible Notes which are due in 2020 and carry a fixed coupon of 10%. Up to a further £100 mln is expected to be raised through the issue of Notes on the same terms to the Trust's existing investors. HUT said £50 mln of this has been underwritten by British Land.
HUT is a specialist retail warehouse fund advised by The British Land Company PLC and managed by Schroders.
In a statement, HUT said it was anticipated that the commitment of the additional capital, together with the Trust's existing cash resources, will be used to make an early repayment of part of HUT's REC Retail Park Limited debt facility. A commitment to pay down £300 mln of debt is part of a package of proposals currently being considered by noteholders that inter alia reduces the refinancing risk at maturity.
