St Modwen Properties has launched 6.25 per cent Sterling Bonds due 2019, the company’s first ever bonds to be made available to retail investors.
St Modwen has a UK property portfolio which is valued at GBP1.1bn, comprises 5,800 acres and is split into income-producing investments, residential land and commercial land and development. St Modwen has a 25 year track record of adding value to its landbank by managing schemes through the planning process, remediating contaminated land and active asset management.
Bill Oliver, chief executive, St. Modwen Properties, says: "We are delighted to announce the launch of St. Modwen’s first retail bond. With significant headroom on our existing debt facilities, the retail bond will provide St Modwen with more diversity in its funding sources, without increasing our gearing."
The bonds will pay a fixed rate of interest of 6.25 per cent per annum, payable twice yearly on 7 May and 7 November of each year with the first coupon payment being made on 7 May 2013 and the bonds maturing on 7 November 2019. At any time during the life of the bond, investors are permitted to sell the bonds (within market hours and in normal market conditions) on the open market through their stockbroker.
Investec Bank and Numis Securities will act as joint lead managers on this issue.
The bonds have a minimum initial subscription amount of GBP2,000 and in multiples of GBP100 thereafter. The offer period will open on 17 October 2012 and is expected to close at noon on 31 October 2012. St Modwen retains the right to close the offer early, in conjunction with the joint lead managers.
The bonds are expected to be listed on the UK Listing Authority’s Official List and admitted to trading on the London Stock Exchange’s regulated market and through the electronic order book for retail bonds.