Business
Convertible Bond Offering
Convertible Bond Offering.
About this update from Derwent London Plc
[{"type":"text","content":"\n \nRNS Number : 7022G Derwent London PLC 17 May 2011 \n \n\n\n17 May 2011 \n \nNOT FOR DISTRIBUTION IN OR TO THE U.S., CANADA, AUSTRALIA OR JAPAN, 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 £175 million of Convertible Bonds due 2016 (the \"Bonds\") with an option to increase the offering to up to £200 million.\n \nThe Company intends to use the net proceeds of the offering to help fund its development pipeline and increase resources for future acquisition opportunities whilst also taking advantage of current favourable market conditions to diversify its medium-term sources of finance.\n \nThe Bonds are expected to be issued by Derwent London Capital (Jersey) Limited, a wholly-owned subsidiary of the Company incorporated in Jersey, and will be guaranteed by the Company. The Bonds will be senior and unsecured obligations of the Group and will be subject to a negative pledge.\n \nThe Bonds will be issued at par and are expected to carry a coupon of between 2.50% and 3.00% per annum payable semi-annually in arrear and will be convertible into fully paid Ordinary Shares of the Company (the \"Shares\") . The initial conversion price is expected to be set at a premium of between 25% and 30% above the volume weighted average price of the Shares from launch to pricing less £0.2025 to be paid to shareholders on the share register on 20 May 2011.\n \nSettlement is expected to take place on or about 2 June 2011 (the \"Settlement Date\"). If not previously converted or redeemed, the Bonds will be redeemed at par on 15 July 2016. The Company will have the option to call all outstanding Bonds on or after the date falling 15 days after the Interest Payment Date falling in July 2014 at par plus accrued interest if the value of the Ordinary Shares underlying a...