Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
LONDON - Derwent London (LON:DLN) plc has successfully priced a £250 million bond issue, with a seven-year term and a fixed interest rate of 5.25%. The bonds will be listed on the UK Listing Authority’s Official List and will be traded on the London Stock Exchange (LON:LSEG)’s Main Market.
The issuance, which reflects a credit spread of 105 basis points, is expected to receive an A- rating from Fitch Ratings Ltd. The proceeds from the bond sale will be primarily used to repay the Group’s revolving credit facilities and refinance upcoming debt maturities.
Additionally, funds from the bond will be allocated to Derwent London’s development pipeline, including the forthcoming Holden House W1 project, which is anticipated to start later this year with an estimated capital expenditure of £150 million.
Damian Wisniewski, Chief Financial Officer of Derwent London, commented on the bond issuance, stating the company’s pleasure in the strong support received, which allows them to secure long-term unsecured debt at an attractive credit spread. He noted that the transaction would extend the Group’s weighted average debt maturity to around five years.
The transaction was facilitated by Barclays (LON:BARC), HSBC, and NatWest Markets as Joint Active Bookrunners, with Wells Fargo (NYSE:WFC) Securities serving as Passive Bookrunner. Rothschild & Co provided advisory services for the deal.
This financial move by Derwent London underscores the company’s strategy to strengthen its balance sheet and support its development projects. It is based on a press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.