UK-based shopping centre investor and developer Intu Properties is aiming to raise £350 million of capital through the issue of convertible bonds.
The bonds have a maturity date in November 2022 and are expected to carry a coupon of between 2.375 percent and 2.875 percent. The initial conversion price into ordinary shares will be set at a premium of between 30 percent and 35 percent above the volume weighted average price of the shares between launch and pricing, Intu said.
The firm noted an increase option which could take the convertible bond issue to £400 million.
Intu said that it will use the proceeds to refinance £101 million of debt drawn from the revolving credit facility it agreed in June for the £410 million acquisition of the remaining 50 percent stake in the Intu Merry Hill shopping centre near Birmingham (pictured).
The finance will also be used by Intu to complete its £212 million committed pipeline of developments over the next two years, including £152 million relating to the 400,000 square feet extension of Intu Watford. The firm added that the proceeds of the offering would enable it to pursue additional projects in the coming year.
Bank of America Merrill Lynch, Credit Suisse and HSBC are acting as joint global coordinators and joint book-runners. UBS Investment Bank is acting as co-book-runner and Lloyds is acting as co-manager. Rothschild is advising Intu.