By Rebecca Melvin
New York, May 17 - Derwent London Capital (Jersey) Ltd., a subsidiary of Derwent London plc, priced £175 million of five-year convertible unsecured senior bonds on Tuesday at par to yield 2.75% with an initial conversion premium of 30%, according to a news release.
The Regulation S offering priced at the middle of talk for the coupon, which was 2.5% to 3%, and at the rich end of premium talk, which was 25% to 30% less £0.2025 to be paid to shareholders on the share register May 20.
The Regulation S securities were sold via joint bookrunners J.P. Morgan Cazenove, RBS Hoare Govett Ltd., HSBC Bank plc and UBS Ltd.
The bonds will be non-callable until July 2014 and then provisionally callable subject to shares being at least 130% of the conversion price for 20 out of 30 consecutive trading days.
Proceeds will be used to help fund development and diversify the company's medium-term financing sources.
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 June 2
London-based Derwent London is a real estate investment trust focused on central London properties.
| Issuer: | Derwent London Capital (Jersey) Ltd.
|
| Underlying entity: | Derwent London plc
|
| Issue: | Convertible senior unsecured bonds
|
| Amount: | £175 million
|
| Maturity: | July 15, 2016
|
| Bookrunners: | J.P. Morgan Cazenove, RBS Hoare Govett Ltd., HSBC Bank plc, UBS Ltd.
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 30%
|
| Conversion price: | £22.22
|
| Call option: | Non-callable until July 2014, then provisionally callable subject to 130% price hurdle
|
| Price talk: | 2.5%-3%, up 25%-30%
|
| Pricing date: | May 17
|
| Settlement date: | June 2
|
| Unit symbol: | London: DLN
|
| Unit price: | £17.25 at close May 17
|
| Distribution: | Regulation S
|
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