Supermarket Income REIT has issued a debut £250m sterling-denominated senior unsecured bond with a term of six years.
The bonds, which will be quoted on the International Securities Market of the London Stock Exchange, will bear a coupon of 5.125% and were priced at a spread of 115 basis points over the relevant benchmark.
Supermarket Income REIT said the bond issuance received strong demand from a broad range of institutional investors with the order book peaking at more than £985m.
The net proceeds of the bonds will be used for general corporate purposes including the refinancing of existing debt facilities. Following the issuance of the bonds, the company’s LTV will be 34% on a pro-forma basis and the weighted average debt maturity will be 4.6 years.
Mike Perkins, CFO of Supermarket Income REIT, said: “As previously indicated, it has been a long-held ambition of ours to issue a bond and we are pleased that it has received such a strong level of investor interest. Our first bond issuance represents a significant milestone for the company, enhancing our financial flexibility and supporting our long-term growth strategy.
“Securing this longer dated financing at an attractive fixed rate lowers SUPR’s medium-term borrowing costs and enhances the potential earnings accretion of our attractive acquisition pipeline as we continue to scale the business.”
Barclays, Goldman Sachs and HSBC acted as joint active bookrunners on the transaction. Wells Fargo and NatWest acted as passive bookrunners. SUPR was advised on the bond by Rothschild & Co.
