St Modwen Properties has announced the launch of an offering of £100 mln (€120 mln) of guaranteed convertible bonds due in 2019.
St Modwen Properties has announced the launch of an offering of £100 mln (€120 mln) of guaranteed convertible bonds due in 2019.
The offering forms part of the company's wider financial strategy to diversify debt funding sources, lower debt costs and extend maturities, taking advantage of current favourable market conditions.
The proceeds will be used to refinance existing bank debt, the company added.
St Modwen, which recently reported a 56% increase in profit before tax, will issue the bond through St. Modwen Properties Securities, a wholly-owned subsidiary incorporated in Jersey.
The bonds will be issued at par and are expected to carry a coupon of between 2.625% and 3.125% per annum payable semi-annually in arrear. The initial conversion price is expected to be set at a premium of between 27.5% and 35% above the volume weighted average price of the shares from market open to close of trading on 26 February 2014.
JP Morgan Securities and The Royal Bank of Scotland are acting as joint bookrunners in relation to the offering.
