SGRO Segro Plc

TIDMSGRO

RNS Number : 9433T

SEGRO PLC

24 July 2020

24 July 2020

EUR450 MILLION US PRIVATE PLACEMENT DEBT ISSUE

SEGRO plc ("SEGRO" or "the Company") has arranged a private placement of EUR450 million 12, 15 and 20 year senior unsecured notes (the "Notes") with a group of institutional investors.

The issue consists of three tranches: EUR150 million at a fixed coupon of 1.35 per cent due 2032, EUR50 million at a fixed coupon of 1.45 per cent due 2035 and EUR250 million at a fixed coupon of 1.83 per cent due 2040. This translates to a weighted average coupon of 1.63 per cent and a weighted average maturity of 16.8 years.

In addition, SEGRO has today given notice to holders of the 6.75 per cent Sterling bonds due 2021 and the 7.0 per cent Sterling bonds due 2022 (the "Bonds") that it intends to redeem in full the outstanding amounts. The combined nominal value of the Bonds was GBP118 million, and they will be redeemed for GBP131 million during August and September.

Pro forma for the position as at 30 June 2020, and taking into account associated hedging, the impact of these transactions is to extend SEGRO's average debt maturity (on a look through basis) to 10.7 years and reduce the average cost of gross debt to 1.6 per cent (including joint ventures at share, excluding commitment fees and amortised costs).

The net proceeds from the new US Private Placement issue, after redeeming the Bonds, will be used for general corporate purposes and the Notes will rank pari passu with SEGRO's existing unsecured bank, bond and US Private Placement debt.

Soumen Das, Chief Financial Officer of SEGRO, commented:

"The support we have received from our existing and new investors for our third US private placement debt issue is a further endorsement of the strategy we are pursuing at SEGRO, reflected particularly in the long duration and low coupons of the new notes. It will increase SEGRO's weighted average debt maturity and further improve the natural currency hedge for our euro-denominated assets."

ENDS

For further information, please contact:

Soumen Das (Chief Financial Officer)

Tel: +44 (0) 20 7451 9110 / soumen.das@segro.com

Harry Stokes (Commercial Finance Director)

Tel: +44 (0) 20 7451 9124 / harry.stokes@segro.com

Lizzie Humphreys (External Communications Manager)

Tel: +44 (0) 20 7451 9129 / lizzie.humphreys@segro.com

Richard Sunderland / Claire Turvey / Eve Kirmatzis (FTI Consulting)

Tel: +44 (0) 20 3727 1000

Notes to Editors:

ABOUT SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT) and listed on the London Stock Exchange in the FTSE 100 index. It is a leading owner, manager and developer of modern warehouses and light industrial property with a portfolio comprising 7.8 million square metres of space (84 million square feet), valued at GBP12.2 billion as at 31 December 2019. Its assets are positioned strategically at locations in the UK across London and the South-East and Midlands regions, while in Continental Europe it has developments in France, Germany, Italy, Poland, Spain, The Netherlands and the Czech Republic.

For 100 years SEGRO has been creating the space that enables extraordinary things to happen. From modern big box warehouses, used primarily for regional, national and international distribution hubs, to urban warehousing located close to major population centres and business districts, it provides high-quality assets that allow its customers to thrive.

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END

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