UK retail REIT Intu Properties has unveiled plans to carry out a £350 mln (€448 mln) bond issue following the transfer of the Intu Derby and Intu Chapelfield shopping centres into the Secured Group Structure (SGS) funding platform.
UK retail REIT Intu Properties has unveiled plans to carry out a £350 mln (€448 mln) bond issue following the transfer of the Intu Derby and Intu Chapelfield shopping centres into the Secured Group Structure (SGS) funding platform.
The SGS structure was established in March 2013 as a central source of funding for Intu. At that time four centres - Intu Lakeside, Intu Watford, Intu Victoria Centre and Intu Braehead - with a combined value of £2.3 bn were placed in the vehicle and £1.1 bn was raised in the form of secured bonds and term loans.
Once the other two assets are transferred, SGS will have a combined value of £3.15 bn and, following the issuance of the new £350 mln bond, will have total outstanding debt of £1.5 bn representing an LTV of 48%.
The proceeds of the proposed new issue will be used to repay the existing debt facilities secured on Intu Derby and Intu Chapelfield, the company said.
UBS and Lloyds Bank will be acting as joint bookrunners and the bond is expected to be listed on the Irish Stock Exchange.