May 11, 2000
Slough Estates USA Inc, a fully owned subsidiary of Slough Estates plc, yesterday completed a private placement of the following unsecured loan notes with nine domestic US institutions:
| Maturity |
2008 |
2010 |
2012 |
2015 |
| Amount |
$15 million |
$91.5 million |
$43.5 million |
$10 million |
| Coupon |
7.84% |
7.94% |
8.00% |
8.09% |
The financing, which was oversubscribed, was arranged by RBC Dominion Securities and enjoys the guarantee of Slough Estates plc. Proceeds of the issue will be used to re-finance bank line drawings funding the Group’s Californian bio-science and high-tech developments which are currently fully let on long term leases.
The additional funding arising from the over-subscription will help to fund the pre-let development of a research and office campus for a subsidiary of a major US health-science company at Torrey Pines Science Center, San Diego.
Trevor Mant, Slough Estates’ Treasurer said:
“The outcome of this initiative is very satisfactory. We have matched the maturity profile of the debt pretty much to that of the leases on the property portfolio, and have locked in at interest rates which are substantially below the initial rental yields on cost.”