Sanctuary secures £120m capital markets funding through bond tap
Sanctuary HG has tapped its 2039 bond for £120 million at a margin of 100 basis points over the gilt.
This continues recent months' downward trend in capital market issuance margins.
The issue has a term length of 29 years and was rated AA- by Standard & Poor's, and Aa2 by Moody's.
Barclays was the sole arranger and book-runner.
Covenants were 1.05 income cover and 1.05 asset cover, on an EUV-SH valuation basis.
Of the total, £80 million was hedged with a gilt lock at 4.855 per cent, while £40 million was priced without a gilt lock at 4.867 per cent.
The issuer was Sanctuary Capital PLC and the funds' recipient was Sanctuary Treasury Ltd.
Sanctuary's funding adviser was Pricewaterhouse Coopers, and its legal adviser was Wragge & Co.
The funders' legal adviser was Allen & Overy.
Valuations were carried out by King Sturge, Countrywide, Mazars and Savills, and the security trustee was Prudential.
