LondonMetric Property pays down bank debt with £130m bond sale

FTSE 250-listed investment group LondonMetric Property has raised £130m through an institutional placing of senior debt to pay down its bank debt and allow it to increase investment in the long-let logistics market.

Three tranches of senior bonds of different maturities will pay a group of four UK and US institutional investors an average 2.7% coupon rate and have a weighted average maturity of 8.3 years.

The first tranche of £65m at 2.62% senior notes is due in 2023, the second £40m at 2.72% is due in 2024 and the last £25m at 2.88% due in 2028.

The funds raised will be used to pay down the company's existing unsecured credit facility, which will extend its weighted average debt maturity at the end of September to just under six years.

Finance director Martin McGann, said: "We are very pleased to have established new lending relationships with four strong institutional investors. The private placement provides further diversification of funding sources at attractive rates and allows us further capacity to increase our investments within the long let logistics market."