Regional REIT successfully raises £50 million in bond issue
The company has announced that it has successful raised £50 million and that the bonds have been admitted to trading on London Stock Exchange today (7th August 2018)
The new capital will be used by Regional REIT to repay it’s most expensive and earliest maturing debt, the 6.5% zero dividend preference shares (ZDPs) which were acquired as part of the Conygar portfolio acquisition on 24 March 2017. Click here to read more on that story. The ZDPs, which are traded on the London Stock Exchange, are due to be redeemed on 9 January 2019. At the time of maturity, it is expected that the ZDPs will have a liability of £39.9m.
The remaining capital will be used towards further reducing the cost of Regional REIT’s borrowings.
Comment from Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the Asset Manager to Regional REIT:
“We are very pleased with the response to the bond issue, which will allow us to significantly reduce the cost of our debt and extend the average maturity. This capital will cover not only the liabilities associated with the ZDP shares, but also enable us to reduce additional higher cost debt facilities.”
“Regional REIT has had an active 18 months and these developments further build on the momentum and position the REIT well for the next stage of its growth.”
“We continue to see good opportunities in the regional property market and look forward to further progressing the REIT and delivering value to our investors.”
RGL : Regional REIT successfully raises £50 million in bond issue