Running for 10 years, the bond will bear interest at a rate of 3.5% per annum and is expected to receive an investment grade rating of BBB and Baa2 from ratings agencies S&P and Moody’s respectively.
The proposed bond issuance forms part of the company’s overall financing strategy to further diversify its sources of funding, extend its debt maturity profile and move more of its funding to an unsecured basis. The proceeds will be used for general corporate purposes and to fund Unite's development pipeline.
“The new financing will provide increased flexibility to support our portfolio strategy as well as lengthening the maturity and reducing our overall cost of debt,” said chief financial officer Joe Lister.
HSBC Bank and Natwest Markets acted as joint active bookrunners. Unite was advised on the bond and credit rating by Rothschild & Co.
Unite unveils £275m bond
Student accommodation provider Unite Group has announced the pricing of a debut, sterling-denominated senior unsecured bond of £275m.
