By Rebecca Melvin
New York, July 17 - Derwent London Capital No. 2 (Jersey) Ltd., a subsidiary of Derwent London plc, priced £150 million of six-year convertible senior bonds at par on Wednesday to yield 1.125% with an initial conversion premium of 35%, according to a company release.
Final terms came richer than the 1.25% to 1.75% talk for the coupon and at the rich end of the 30% to 35% talk for the premium.
Barclays Bank plc, Royal Bank of Scotland plc, HSBC Bank plc, J.P. Morgan Securities plc and UBS Ltd. were joint bookrunners for the Regulation S securities.
The bonds are non-callable for three years until July 2016 and then provisionally callable subject to the company's shares being at least 130% of the conversion price for 20 out of 30 consecutive trading days.
Proceeds will be used to refinance property acquisitions totaling about £93 million made in the last 12 months, to help fund development, and to increase resources for future acquisitions.
Application will be made for the bonds to be listed on the Official List and admitted to trading on the Professional Securities Market of the London Stock Exchange.
Settlement is expected on July 24.
Derwent London is a London-based real estate investment trust.
| Issuer: | Derwent London Capital No. 2 (Jersey) Ltd.
|
| Parent company: Derwent London plc
|
| Issue: | Convertible senior bonds
|
| Amount: | £150 million
|
| Maturity: | July 24, 2019
|
| Bookrunners: | Barclays Bank plc, Royal Bank of Scotland plc, HSBC Bank plc, J.P. Morgan Securities plc and UBS Ltd.
|
| Coupon: | 1.125%
|
| Price: | Par
|
| Yield: | 1.125%
|
| Conversion premium: 35%
|
| Conversion price: | £33.35
|
| Call option: | Non-callable until July 2016, then provisionally callable subject to 130% price hurdle
|
| Price talk: | 1.25%-1.75%, up 30%-35%
|
| Pricing date: | July 17
|
| Settlement date: | July 24
|
| Ratings: | Standard & Poor's: BBB
|
| Stock symbol: | London: DLN
|
| Stock price: | £24.60 at close July 17
|
| Distribution: | Regulation S
|
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