£275 million senior unsecured bond – 09 October 2018

The Unite Group Plc (the “Company”) is pleased to announce the pricing of a debut, sterling-denominated senior unsecured bond (the “Bond”) in an aggregate principal amount of £275 million and for a term of 10 years. The Bond will bear interest at a rate of 3.5 per cent per annum.

S&P and Moody’s are expected to assign the Bond an investment grade rating of BBB and Baa2 respectively.

Following the issuance of the Bond, the Company’s weighted average debt maturity will increase from 4.6 years to 5.8 years. Pro forma all in cost of debt on a fully drawn basis will reduce to 3.6%.

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 of the proposed Bond issuance will be used for general corporate purposes and to fund the Company’s development pipeline.

HSBC Bank plc and Natwest Markets acted as joint active bookrunners. The Company was advised on the bond and credit rating by Rothschild & Co.

Joe Lister, Chief Financial Officer, commented:

“We are delighted to announce the launch and pricing of our new unsecured 10-year bonds. 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.”

For further information, please contact:
Joe Lister, Chief Financial Officer
Tel: +44 117 302 7005
Candice Macdonald, Head of Corporate Communications
Tel: +44 7525 592521

Powerscourt, PR adviser to Unite
Justin Griffiths, Alison Watson or Mazar Masud
Tel: +44 207 250 1446
unite@powerscourt-group.com