British Land in convertible bonds offering
As anyone who has played the standard British version of the board game Monopoly knows, property in Mayfair is very expensive, which accounts for why British Land is tapping the bond market to pay for its recent acquisition of the Clarges Estate overlooking Green Park.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Twice daily
MoneyWeek
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Four times a week
Look After My Bills
Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!
As anyone who has played the standard British version of the board game Monopoly knows, property in Mayfair is very expensive, which accounts for why British Land is tapping the bond market to pay for its recent acquisition of the Clarges Estate overlooking Green Park.
The company is offering £300m of senior, unsecured convertible bonds due 2017, although depending on demand, the size of the offering may be increased by up to £100m.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The bonds will be issued at par and are expected to carry a coupon (interest rate) of between 1.375% and 1.875% per annum payable semi-annually in arrears. Subject to the satisfaction of certain conditions, the bonds will be convertible into ordinary shares of British Land, with the initial conversion price expected to be set at a premium of between 27.5% and 32.5% above the volume weighted average price of the Shares between the launch of the bond offering and the decision on pricing.
If fully converted, the bonds would represent somewhere between 5% and 7% of the company's issued share capital. Under the terms of the bond issue the company will have the right to elect to settle any conversion entirely in shares, cash or a combination of shares and cash.
The final terms of the bonds are expected to be announced on Tuesday, September 4th, and settlement is expected to take place on or about 10th September 2012.
JH
-
How a ‘great view’ from your home can boost its value by 35%A house that comes with a picturesque backdrop could add tens of thousands of pounds to its asking price – but how does each region compare?
-
What is a care fees annuity and how much does it cost?How we will be cared for in our later years – and how much we are willing to pay for it – are conversations best had as early as possible. One option to cover the cost is a care fees annuity. We look at the pros and cons.
