| Wed 17 Sep 2003, 13:14 | | Liberty International Plc Launches Convertible Bon |
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Liberty International Plc Launches Convertible Bond
LIBERTY INTERNATIONAL PLC
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code: LBT
Issuer Code: LILI
NOT FOR RELEASE OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA
OR JAPAN
LIBERTY INTERNATIONAL PLC LAUNCHES CONVERTIBLE BOND
Liberty International PLC ("Liberty International") announces today the launch
of an offering of around GBP240 million of Convertible Bonds (the "Convertible
Bonds") convertible into fully paid ordinary shares of Liberty International.
The Convertible Bonds, which will have a stated maturity date of 30 September
2010, are expected to carry a coupon of between 3.65% and 3.95% per annum, and
the conversion price is expected to be set between 800p and 825p per share. The
Convertible Bonds will be issued at par and, if not converted, redeemed at par
on maturity. Investors have the right to repayment by Liberty International at
par on 30 September 2008. In addition, Liberty International has the right to
redeem all outstanding Convertible Bonds on or after 14 October 2008 if the
ordinary shares of Liberty International trade for a specified period of time at
120% or more of the conversion price. The Convertible Bonds are expected to
price today and closing is expected on or about 16 October 2003.
The Convertible Bonds will be convertible into fully paid ordinary shares of
Liberty International at any time after 26 November 2003. Application will be
made for the Bonds to be admitted to the Official List of the UK Listing
Authority and to the London Stock Exchange"s market for listed securities.
The net cash proceeds will be used to fund Liberty International"s capital
expenditure programme and for its general corporate purposes.
Donald Gordon, Chairman, said:
"Our committed development programme, including the major extension of
MetroCentre, Gateshead, and Chapelfield, Norwich, has some GBP400 million of
expenditure to completion. Moreover, the pipeline of potential regional
shopping centre developments over the next five years, including Cardiff, Oxford
and the major extension and enhancement of Eldon Square, Newcastle, could amount
to around a further GBP600 million.
The group has significant financial strength to support this development
programme, with high quality assets, robust income streams, shareholders" funds
of GBP2.7 billion and a debt to assets ratio of around 40 per cent at 30 June
2003.
The group"s continued expansion in recent years has largely been financed by
long term non-recourse bank facilities linked to our major regional shopping
centres. However, as Liberty International has, for nearly a year, been a
constituent of the FTSE 100 Index, our profile has been enhanced with the
consequential beneficial impact of expanding the range of financing options
available to the Liberty International group. We are now taking this
opportunity to access the convertible bond market on attractive terms and
thereby augment the group"s aggregate cash resources and committed undrawn
facilities to a level appropriate for the group"s capital expenditure plans."
Date: 17/09/2003 10:12:03 AM Produced by the JSE SENS Department
