Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) has announced the issue of a debut £250 million senior unsecured bond with a 6-year term.
The bond carries a fixed coupon of 5.125% and was priced at a spread of 115 basis points above the benchmark. It will be listed on the International Securities Market of the London Stock Exchange.
Investor demand for the bond was strong, with the orderbook exceeding £985 million. The proceeds will be used for general corporate purposes, including the refinancing of existing debt facilities.
"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," said CFO Mike Perkins.
"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."
The company said the issuance will diversify its capital structure and support a shift to primarily unsecured financing. Pro forma loan-to-value will be 34% and the weighted average debt maturity will extend to 4.6 years.
Fitch is expected to assign a BBB+ rating to the bond, matching the company’s current rating.