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Capco raises £150m in US private placement

Notes issued at 3.63% and 3.68%

Capco has raised £150m through a US private placement for its Covent Garden estate in London’s West End.

Five US institutional investors have bought the 10 and 12-year senior unsecured notes raised by the holding company that owns the estate. The placement is the first time Capco has tapped the US market.

The issue shows listed companies continued ability and desire to raise cheap finance through the capital markets despite the widely improved banking market.

It consists of two equal tranches: £75m, 3.63% senior notes due 2024 and £75m 3.68% senior notes due 2026. Closing and funding of the transaction will occur in December. The proceeds will be used to repay bank debt and for general corporate purposes.

Soumen Das, finance director said: “The transaction enhances the unsecured platform at Covent Garden which was established earlier this year, extending the debt maturity profile and the already strong liquidity position through a new source of long-term funding at attractive, fixed-rate coupons.”

The Royal Bank of Scotland acted as sole placement agent for the transaction.

 

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