Pershing Square announces $400m private bond placement
Pershing Square Holdings Ltd NPV
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16:40 03/05/24
Pershing Square Holdings announced a fully-committed private placement of $400m of bonds on Monday, with a coupon of 4.95%, maturing on 15 July 2039.
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The FTSE 250 company said the bonds would be unsecured, and would rank equally in right of payment with the issuer’s $1bn 5.5% senior notes due in 2022.
It said the bonds would be issued to institutional accounts managed by Guggenheim Partners Investment Management.
Closing of the issuance and sale of the bonds was expected to be on or around 25 July, and would be subject to customary closing conditions.
“The bonds contain substantially the same covenants as those governing the initial notes,” the Pershing Square board said in its statement.
“The key man covenant for the initial notes and the bonds provides for an offer to purchase at 101% of the principal amount, plus accrued interest, in the event the covenant is triggered prior to 15 July 2022.
“In the event the covenant is triggered after 15 July 2022, the specified total indebtedness to total capital ratio in the debt covenant would change from 1.0 to 3.0 to 1.0 to 4.0.”
Pershing Square said the proceeds from the bonds’ issuance would be used to make investments in accordance with its investment policy, and for general corporate purposes.