Private Placement

RNS Number : 6863F

Irish Residential Prop REIT PLC

11 March 2020

 

11 March 2020

I●RES REIT COMPLETES PRIVATE PLACEMENT OF c. €200 Million (Euro equivalent) NOTES OFFERING

Irish Residential Properties REIT plc ("I●RES" or the "Company") today announces that it has successfully closed the issue of Euro€130 million notes and IRES Residential Properties Limited, its subsidiary, has closed the issue of USD$75 million notes on a private placement basis (collectively, the "Notes"). The Notes will have a weighted average fixed interest rate of 1.92% inclusive of a USD Euro swap and an average maturity of 9.7 years.

The Notes have been placed in four tranches:

(a)  €90,000,000 in aggregate principal amount of its 1.83% Series A Senior Secured Notes due March 10, 2030;

(b)  €40,000,000 in aggregate principal amount of its 1.98% Series B Senior Secured Notes due March 10, 2032;

(c)  USD$50,000,000 in aggregate principal amount of its 3.44% Series A Senior Secured Notes due March 10, 2027; and

(d)  USD$25,000,000 in aggregate principal amount of its 3.63% Series B Senior Secured Notes due March 10, 2030

IRES Residential Properties Limited has entered into USD Euro cross currency, interest rate swaps for the US tranches of the Notes.

The net proceeds from the Notes issue will be used to partially repay the drawn amount under the Company's Revolving Credit Facility. The Notes are secured by a floating charge over the assets of the Company and IRES Residential Properties Limited and a fixed charge over the shares held by the Company in IRES Residential Properties Limited, and rank pari passu with the lenders under the Revolving Credit Facility.

The offer attracted strong interest from international institutional investors, including US life insurance and US institutional investors that were not part of the Company's existing investor base.

NatWest Markets plc and HSBC Securities (USA) Inc. acted as joint placement agents on this transaction.

Margaret Sweeney, I●RES Chief Executive Officer, commented:

"We are very pleased to have completed successfully our first Notes Private Placement which was heavily oversubscribed and reflects the strong support of investors for the Company. The closing of this transaction is part of our proactive financing strategy to reduce the cost and significantly extend the maturity of our debt facilities as well as diversifying the range of debt providers to the Company. This also gives the Company access to a broader range of funding options in the future to support the Company's growth strategy."

For further information please contact:

For Investor Relations:

Irish Residential Properties REIT plc

Margaret Sweeney, CEO

+ 353 (0) 1 557 0974

For Media Requests:

Q4PR

Gerry O'Sullivan

+ 353 87 2597644

About Irish Residential Properties REIT plc

Irish Residential Properties REIT plc, is a leading Irish Real Estate Investment Trust ("REIT") listed on Euronext Dublin. The Company is the first REIT established in Ireland primarily focused on residential rental accommodations. The Company will continue to seek to acquire, hold, manage and develop investments primarily focused on residential rental accommodations in Ireland.  The Company currently owns 3,692 residential units with an additional 193 units due for delivery between now and 2021 under pre-purchase contracts. The Company also has planning approval to develop an additional 627 residential units on its existing sites. Further information in respect of the Company can be obtained from the Company's website at www.iresreit.ie .

Note on forward-looking information

This note applies if and to the extent that there are forward-looking statements in this Announcement.

This Announcement may contain forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement.  The Company will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.

Disclaimer

The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.  This notice is for information only, does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

 

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