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Cardiff University today announces that it has priced a ‘tap’ issue of a further £100m in nominal amount of its existing £300m 3% bonds due 2055.
The new bonds will be issued at a premium to their nominal value, reflecting the fact that interest rates have fallen since the original issue in 2016. As a consequence, the proceeds of the issue will be approximately £130m.
The new bonds are expected to be assigned a rating of A1 (stable outlook) by Moody’s, the same as the current rating on the existing bonds.
The University will use the net proceeds from the bond for general corporate purposes, including investment in research and teaching facilities, as well as other University assets.
Vice-Chancellor Professor Colin Riordan said: “We are delighted with the success of this issue and the strong support shown by investors.
“Proceeds of the sale will help finance our strategic goals.
“Through our Estates Master Plan we aim to provide new research, teaching and student facilities that are among the best in the world.’
Barclays Bank and Lloyds Bank Corporate Markets acted as Joint Bookrunners. Rothschild & Co provided independent debt advice to the University and Mills & Reeve provided legal advice.
Any investment decision made in connection with the Bond issue must be based solely on the information contained in the final Prospectus relating to the Bonds.
In connection with the issue of the Bonds, Barclays Bank plc (the Stabilising Manager) (or persons acting on behalf of the Stabilising Manager) may over allot Bonds or effect transactions with a view to supporting the price of the Bonds at a level higher than that which might otherwise prevail. However, there is no assurance that the Stabilising Manager (or persons acting on behalf of the Stabilising Manager) will undertake stabilisation action. Any stabilisation action may begin on or after the date on which adequate public disclosure of the terms of the offer of the Bonds is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue date of the Bonds and 60 days after the date of the allotment of the Bonds. Any stabilisation action or over-allotment must be conducted by the Stabilising Manager (or persons acting on behalf of the Stabilising Manager) in accordance with all applicable laws and rules.