Grainger PLC Grainger secures GBP350 million senior secured bond (2842R)
29 Junio 2020 - 1:00AM
UK Regulatory
TIDMGRI
RNS Number : 2842R
Grainger PLC
29 June 2020
LEI: 2138007CEIRKZMNI2979
THIS ANNOUNCEMENT IS NOT FOR PUBLICATION, DISTRIBUTION OR
RELEASE, DIRECTLY OR INDIRECTLY, IN THE UNITED
STATES (OR TO U.S. PERSONS), AUSTRALIA, CANADA, JAPAN, SOUTH
AFRICA OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD
BE PROHIBITED BY APPLICABLE LAW
This announcement is released by Grainger plc and contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) 596/2014 and has been announced in accordance
with Grainger plc's obligations under Article 17 of that
Regulation. For the purposes of MAR and Article 2 of Commission
Implementing Regulation (EU) 2016/1055, this announcement is made
by Adam McGhin, Company Secretary, at Grainger plc.
Grainger plc
Grainger plc secures GBP350 million senior secured bond in line
with its strategic growth plans
Continued strong trading performance
Grainger plc (the "Group"), the UK's largest listed residential
landlord, has issued a GBP350m sterling-denominated senior secured
bond at a coupon of 3.0% for 10 years. The bond is rated BBB- by
S&P.
The transaction follows the Company's successful equity raise in
February 2020, and forms part of the Company's overall financing
strategy to extend its debt maturity profile and align to our
long-term private rented sector (PRS) investment strategy.
Following the recent equity raise, the net proceeds from the
issue of the Bonds will be used to support Grainger's strategic
growth plans, enabling the business to continue to grow its PRS
pipeline, and the repayment of a GBP200m short-term bank
facility.
The transaction will extend the Company's weighted average debt
maturity profile to 6.8 years and will marginally increase the
Company's average cost of debt to 3.1% on a pro forma basis.
Strong performance has continued
Grainger has continued to perform strongly since its interim
results announcement on 14 May 2020. Rent collected on-time during
May was 96% (March 2020: 95% and April 2020: 94%) with residential
rent arrears stable at a low 1.6% by the end of the month.
Like-for-like rental growth remains robust, and occupancy levels
were maintained over 97%. Momentum in our sales pipeline has
continued to build with pricing ahead of valuations.
Vanessa Simms, Chief Financial Officer, said:
"We are delighted by the response to this bond issuance, which
forms part of our financing strategy. The success of today's
transaction reflects the strength of Grainger's business model and
balance sheet, which enables us to continue with our growth
strategy of providing high quality rental homes. Today's
transaction is an important milestone in extending our maturity
profile and provides long-term interest rate certainty at an
attractive coupon. This will enhance our funding capacity to expand
our PRS pipeline further."
Barclays Bank Plc, HSBC Bank Plc and NatWest Markets Plc acted
as joint bookrunners. Rothschild & Co acted as financial
adviser.
The manufacturer target market for the purpose of Directive
2014/65/EU ("MiFID II") product governance is eligible
counterparties and professional clients only (all distribution
channels). No PRIIPs key information document (KID) has been
prepared as the Bonds are not available to retail in EEA or in the
United Kingdom.
This announcement is not an offer of the Bonds in the United
States or any other jurisdiction. Securities may not be offered or
sold in the United States absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended (the
"Securities Act").
This communication does not constitute an offer of the Bonds to
the public in the United Kingdom. This communication is being
distributed to and is directed only at (i) persons who are outside
the United Kingdom or (ii) persons in the United Kingdom who are
(A) investment professionals within the meaning of Article 19(5) of
the Financial Services and Markets Act 2000 (Financial Promotion)
Order 2005 (the "Order") and (B) high net worth entities falling
within Article 49(2)(a) to (d) of the Order or (iii) persons to
whom an invitation or inducement to engage in investment activity
(within the meaning of Section 21 of the Financial Services and
Markets Act 2000 ("FSMA")) in connection with the issue or sale of
any Bond may otherwise lawfully be communicated or caused to be
communicated (all such persons together being referred to as
"Relevant Persons"). Any investment activity to which this
communication relates will only be available to and will only be
engaged with, Relevant Persons. Any person who is not a Relevant
Person should not act or rely on this document or any of its
contents.
A securities rating is not a recommendation to buy, sell or hold
securities and may be subject to revision or withdrawal at any
time.
This announcement is an advertisement and not a prospectus for
the purposes of Directive 2003/71/EC, as amended.
THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES OR TO OR FOR THE ACCOUNT
OF U.S. PERSONS (EACH AS DEFINED IN REGULATION S UNDER THE
SECURITIES ACT ("REGULATION S")). THE BONDS HAVE NOT BEEN AND WILL
NOT BE REGISTERED IN THE UNITED STATES UNDER THE SECURITIES ACT,
AND MAY NOT BE OFFERED, SOLD OR DELIVERED IN THE UNITED STATES (AS
SUCH TERM IS DEFINED IN REGULATION S) OR TO OR FOR THE ACCOUNT OF
U.S. PERSONS (AS SUCH TERM IS DEFINED IN REGULATION S) UNLESS THE
BONDS ARE REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IS
AVAILABLE.
FCA/ICMA stabilisation.
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
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contact rns@lseg.com or visit www.rns.com.
END
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