Segro PLC — Capital/Financing Update 2018

Aug 9, 2018

National Storage Mechanism | Additional information

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RNS Number : 2662X

SEGRO PLC

09 August 2018

9 August 2018

€300 MILLION US PRIVATE PLACEMENT DEBT ISSUE

SEGRO plc ("SEGRO" or "the Company") has signed an agreement with a group of institutional investors for a private placement of €300 million 10 year and 15 year senior unsecured notes.

The issue consists of two tranches: €100 million at a fixed coupon of 1.82 per cent due 2028 and €200 million at a fixed coupon of 2.37 per cent due 2033. This translates to a weighted average coupon of 2.19 per cent and a weighted average maturity of 13.3 years.

Pro forma for the position as at 30 June 2018, and adjusting for the recently announced redemption of the remaining £102 million SEGRO bonds due 2019, the impact of these transactions is to extend SEGRO's average debt maturity to 11.6 years and reduce the average cost of gross debt to 1.9% (including joint ventures at share, excluding commitment fees and amortised costs).

The proceeds will be used for general corporate purposes and the new issue will rank pari passu with SEGRO's existing unsecured bank and bond debt.

Soumen Das, Chief Financial Officer of SEGRO, commented: "The support we have received from our existing and new investors for our second US private placement debt issue is a further endorsement of the strategy we are pursuing at SEGRO. It will increase SEGRO's weighted average debt maturity and will further improve the natural currency hedge for our euro-denominated assets."

Santander Investment Securities Inc., Wells Fargo Securities, LLC and Lloyds Securities Inc. acted as Joint Placement Agents.

ENDS

For further information, please contact:

SEGRO plc

Soumen Das (Chief Financial Officer)

Tel: +44 (0) 20 7451 9110 / soumen.das@segro.com

Harry Stokes (Commercial Finance Director)

Tel: +44 (0) 20 7451 9124 / harry.stokes@segro.com

Lizzie Humphreys (External Communications Manager)

Tel: +44 (0) 20 7451 9129 / lizzie.humphreys@segro.com

Richard Sunderland / Claire Turvey / Eve Kirmatzis (FTI Consulting)

Tel: +44 (0) 20 3727 1000

Notes to Editors:

ABOUT SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 6.9 million square metres of space (74 million square feet) valued at over £10 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in nine other European countries.

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