Business
Announcement re: Convertible Bond Offering
Announcement re: Convertible Bond Offering.
About this update from Derwent London Plc
[{"type":"text","content":"\n \nRNS Number : 4746J Derwent London PLC 17 July 2013 \n \n\n\n17 July 2013 \n \nNOT FOR DISTRIBUTION IN OR TO THE U.S., CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW \n \nDerwent London plc Convertible Bond Offering\n \nDerwent London plc (the \"Group\", the \"Company\" or \"Derwent London\") today announces the launch of an offering of £150m of Convertible Bonds due 2019 (the \"Bonds\"). \n \nThe Bond offering forms part of a wider financial strategy to lower debt costs, extend maturities and provide an appropriate mix of secured and unsecured debt for the Group taking advantage of current favourable market conditions. Derwent London's strategic aim is to move towards a target for unencumbered assets representing at least 50% of the total property portfolio over the next 12 months. The Company intends to use the net proceeds of the offering to refinance property acquisitions totalling approximately £93m made in the last 12 months, to help fund its significant development pipeline and to increase resources for future acquisition opportunities. \n \nDerwent London has a committed capital expenditure programme of around £400m and is currently on site at projects totalling in excess of 400,000 sq ft (37,200m2). Over the next 12 months the Group will start construction of a further 345,500 sq ft (32,050m2). Following the expected completion of the sale of 1-5 Grosvenor Place SW1, Derwent London will still have 2.5 million sq ft (232,000m2) of space that could potentially be delivered by 2020.\n \nThe Group intends to announce its interim results for the six month period ended 30 June 2013 on 15 August 2013. Our performance is anticipated to be in line with the Group's expectations.\n \nThe Bonds are expected to be issued by Derwent London Capital No. 2 (Jersey) Limited, a wholly-owned subsidiary of the Company incorporated in Jersey, and will be guaranteed by the Company. &...