London - Leading global law firm Mayer Brown has advised property and development company Helical Bar plc, on its offering of £100 million Guaranteed Convertible Bonds due 2019.
The Convertible Bonds were issued by a "cash box" company, Helical Bar (Jersey) Limited (the "Issuer"), and are convertible, during certain defined conversion periods, into preference shares of the Issuer which are automatically and mandatorily exchangeable for fully paid ordinary shares of Helical Bar. The terms of the Bonds provide Helical Bar, at its discretion, with the right to meet its exchange obligations to Bondholders by delivering ordinary shares, a cash amount equal to the value of the ordinary shares or a combination of both. Helical Bar is acting as guarantor of the Convertible Bonds.
Helical Bar recently published strong operational and financial results for the financial year ended 31 March 2014 including record profits before tax of £101.7 million and a Total Property Return of 22.4 percent. The proceeds will be used to refinance existing revolving credit facilities initially, then to invest in Helical Bar's development programme and fund a pipeline of investments.
It is intended that an application will be made for the Bonds to be listed on a recognised stock exchange prior to its first interest payment date.
Kate Ball-Dodd, Capital Markets partner at Mayer Brown, commented: "We are very pleased to have assisted Helical Bar in this successful transaction, following on from the £80 million retail bond offering undertaken by it last year."
Mayer Brown Capital Markets partner James Taylor, added: "The success of this offering demonstrates that the convertible bond asset class remains an attractive proposition to investors in the current low-interest environment, and we are delighted that the client was able to access the equity-linked capital markets at this time to diversify its means of financing."
The Capital Markets team at Mayer Brown was led by partners Kate Ball-Dodd and James Taylor. They were assisted by senior associate Michelle Wyatt.