UK student housing specialist Unite Group announces the launch and pricing of £380 mln (€447 mln) of bonds.
UK student housing specialist Unite Group announces the launch and pricing of £380 mln (€447 mln) of bonds.
The bonds are being issued under the new debt funding platform for the Unite UK Student Accommodation Fund (Usaf).
Usaf is the largest specialist student accommodation fund in the UK. Its portfolio comprises 63 properties, providing over 21,000 bed spaces, in 20 markets across the UK. The portfolio is valued at over £1.3 bn.
Unite is the largest investor in Usaf with a holding of 16%.
The £380 mln of bonds will have a 10-year maturity (due 2023) and a fixed coupon of 3.4%, representing a spread of 150 basis points over the reference gilt yield. The bonds comprise part of a larger £405 mln refinancing, which incorporates a £25 mln five-year revolving credit facility, corresponding to an overall loan to value of around 50%. The existing USAF bonds being redeemed by this refinancing will be repaid on its next payment date on 28 June 2013. The new bonds are expected to be rated A (sf) by both Standard & Poor’s and Fitch.
