Workspace Group PLC Private Placement of £200m (3648M)

TIDMWKP

RNS Number : 3648M

Workspace Group PLC

28 July 2017

28 July 2017

Workspace GROUP PLC

PRIVATE PLACEMENT OF GBP200M

Workspace Group PLC ('Workspace' or the 'Group') announces that it has priced a GBP200m private placement comprised of GBP80m eight-year notes and GBP120m 10-year notes. This Sterling denominated unsecured debt has a weighted average maturity of 9.2 years and a blended fixed rate coupon of 3.14%.

The new notes will be placed with eight UK and US institutional investors, including four new lenders to Workspace, and have the same financial covenants as the Group's other debt facilities. All agreements are subject to final documentation with the transaction expected to complete on 16 August 2017. The proceeds will be used to fund the Group's investment plans.

The private placement together with the additional GBP100m five-year revolver facility provided by our bank lending syndicate in June 2017 will increase the Group's debt facilities to GBP665m. The 364-day revolver facility also provided by our bank lending syndicate in June 2017 will be cancelled when the private placement transaction completes.

On a proforma basis, based on the drawn debt at 30 June 2017, the Group's weighted average interest rate following completion of the private placement would be approximately 4.3% (Year to 31 March 2017: 5.2%), with GBP229m of cash and undrawn facilities at a marginal interest rate of 1.8%.

NatWest Markets, Santander and HSBC acted as joint active agents on the new issue.

Graham Clemett, Chief Financial Officer of Workspace commented:

"We are delighted with investor appetite for this private placement issue, a strong endorsement of the Group's business strategy and investment plans. The new notes will enable us to capitalise on current low interest rates, secure longer term funding for the Group at a low cost, and put us in a strong liquidity position."

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For further information, please contact:

Workspace Group PLC 020 7138 3300

Graham Clemett, Chief Financial Officer

Clare Dundas, Head of Corporate Communications

Edelman 020 3047 2546

John Kiely

Mav Wynn

Rob Yates

Notes to Editors

About Workspace Group PLC:

Workspace (WKP) is a FTSE 250 listed Real Estate Investment Trust and a member of the European Public Real Estate Association.

Established in 1987, and listed on the London Stock Exchange since 1993, Workspace owns and manages more than 3.7 million sq. ft. of business space across 69 London properties. We are home to some 4,000 businesses including some of London's fastest growing and established brands across a wide range of sectors.

Workspace is geared towards helping businesses perform at their very best. The Workspace Advantage is our unique customer offer and is open to all - we provide inspiring, flexible work spaces with super-fast technology in dynamic London locations.

The way businesses work is changing. That's why we continually invest in providing the technology infrastructure that enables our customers to think and move fast, and alongside their working environment, is tailored to each individual business.

For more information on Workspace, please visit www.workspace.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

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July 28, 2017 02:00 ET (06:00 GMT)