Capital Shopping tops up its war-chest
Capital Shopping Centres (CSC) is to tap the bond market to refinance its short-term borrowings and top up its war-chest.
Capital Shopping Centres (CSC) is to tap the bond market to refinance its short-term borrowings and top up its war-chest.
The group is offering £300m of senior unsecured convertible bonds due 2018, although, depending on demand, the size of the issue may increase to £350m.
The bonds are expected to carry a coupon (interest rate) of between 1.75% and 2.25% per annum. The initial price at which the bonds would convert into Capital Shopping Centres shares is expected to be set at a premium of between 30% and 35% above the volume weighted average price of the shares between the launch of the issue and pricing of same.
Subscribe to 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
If not converted, redeemed or purchased and cancelled, the bonds will be redeemed at on October 4th, 2018.
In addition to the proposed convertible bond financing, CSC continues to review further options for financing the long-term growth plans of the business. Among the options being considered is the introduction of equity partners into major assets. CSC noted that around three-quarters of its portfolio is made up of properties where it is the sole owner.
Since releasing its interim results on July 26th, occupancy and footfall at its portfolio of stores have remained stable, the property company said.
JH
-
Rightmove: property asking prices hit record high
News Rising demand for top of the ladder home is boosting asking prices, Rightmove research shows. Is now a good time to sell a property?
By Marc Shoffman Published
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published