Intu to Raise 1.15 Billion Pounds of Debt to Refinance Malls
Stock Chart for Intu Properties PLC (INTU)
Intu Properties Plc, the U.K.’s biggest mall owner, plans to raise about 1.15 billion pounds ($1.7 billion) to replace debt secured by four shopping centers.
Intu, formerly known as Capital Shopping Centres Group Plc, will refinance loans backed by the Lakeside mall in Essex, Glasgow’s Braehead site, Intu Watford and Nottingham’s Victoria Centre, according to a statement from the company today. The properties are valued at 2.3 billion pounds, Intu said.
The company hired Bank of America Corp., HSBC Holdings Plc and UBS AG to arrange meetings with bond investors beginning March 4, a person with knowledge of the matter said. The issuer of the bonds will be Intu (SGS) Finance Plc, a ring-fenced funding company, the person said. Intu arranged bank debt including a bridge loan to be replaced with bonds, the person said.
Loans secured by the Braehead and Watford properties are part of the Opera Finance CSC3 Plc commercial mortgage-backed security, according to data compiled by Bloomberg. Those loans, totaling 559 million pounds, are due to repay in April 2015, the data show. CSC also got a 525 million-pound seven-year loan in January 2010 to refinance CMBS debt secured against the Lakeside mall.
The financing announced today will replace more than half of Intu’s debt maturing in three to five years, it said.
The company also plans to sell shares to finance a 250.5 million-pound purchase of Midsummer Place Shopping Centre.
Intu dropped as much as 3.8 percent in London trading, the biggest decline since Sept. 20. The shares were down 1.7 percent at 337 pence at 12:15 p.m. in London. Before today, they had gained 4.3 percent in six months.
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