Derwent’s £150m deal shows that CBs are still hot property

By Andrew Griffin
18 Jul 2013

Equity-linked products are popular with real-estate issuers looking to diversify their funding methods. The latest to do so, this week, was Derwent London, a £2.5bn market capitalisation UK real-estate investment trust that focuses on offices, which raised £150m on Wednesday through a six-year convertible bond, that priced at the best terms for the issuer even after cutting its coupon range amid strong demand.

The deal was launched at the market open on Wednesday, with a 1.25%-1.75% coupon range and a conversion premium of 30%-35%. The coupon range was cut two hours into bookbuilding to 1.125%-1.250% on the back of strong demand. 

Tighter ranges than the one used at launch had been suggested ...

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