Corporate Bond raising EUR 350 million
Sirius raises EUR 350 million senior unsecured bond maturing 2032 at 4% coupon, rated BBB.
- Bond amount EUR 350 million
- Coupon 4%
- Maturity 2032
- Expected rating BBB (Fitch)
- Weighted average debt maturity 4.2 years (prior 3.5 years at 30 September 2024)
- Total average cost of debt 2.6% (prior 2.1% at 30 September 2024)
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LSE (GBP) Share Code: SRE
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius", the "Company" or the "Group")
Sirius Real Estate issues Corporate Bond raising EUR 350 million
Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K., is pleased to announce that it has raised €350 million in a senior unsecured corporate bond issuance (the "Bond").
The Bond, which matures in 2032, carries a coupon of 4% and is expected to be rated BBB by Fitch. Following on from successful bond and equity financings during 2024, the €350 million bond issuance was approximately five times oversubscribed, underlining clear support from investors for the Company and its strategy.
The new bond will increase Sirius' weighted average debt maturity to 4.2 years from 3.5 years at 30 September 2024 with the Company's total average cost of debt rising accordingly to 2.6% (2.1% at 30 September 2024).
The proceeds of the issue will be principally used to refinance existing indebtedness, including in due course and in part the EUR 400 million June 2026 bond, as well as for general corporate purposes, including a significant pipeline of potential acquisitions in Germany and the U.K.
The Bond is governed by German law and will be listed on the Euro MTF Market of the Luxembourg Stock Exchange.
Deutsche Bank, HSBC and Morgan Stanley acted as joint bookrunners on the transaction, with Lazard acting as financial adviser.
Chris Bowman, Chief Financial Officer of Sirius, commented: "We appreciate the strong support that we have received from institutional investors for this €350 million bond issue which provides valuable, long-duration liquidity to enable us to continue executing our value-add growth plan. We remain well within our net LTV guidance of 40% or below. The strength of Sirius' investment case and capital markets access demonstrates investor confidence in our ability to generate strong income returns and our longer-term growth strategy."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.