Tesco Sells GBP958.45M Commercial Mortgage Bond At Gilts +1.65

30th Jun 2010 15:27

LONDON (Dow Jones)--Tesco Property Finance 3 PLC has sold a GBP958.45 million senior, secured, fixed rate bond backed by a commercial mortgage loan, via joint bookrunners Goldman Sachs Group Inc. and HSBC Holdings PLC, one of the banks said Wednesday. The collateral for the loan is the leasehold interest in 41 U.K. commercial properties. U.K. retailer Tesco PLC (TSCO.LN) is the rental guarantor, and all the properties are let to Tesco-related entities. Full terms of the issue are as follows. Amount: GBP958.45 million Maturity: April 13, 2040 Coupon: 5.744% Issue Price: 100 Expected Weighted Average Life: 22.4 years Payment Date: July 7, 2010 Spread: 165 basis points over gilts Debt Ratings: A3 (Moody's) A- (Standard & Poor's) A- (Fitch) Denominations: GBP50,000 and increments of GBP1,000 thereafter Listing: Irish Stock Exchange Interest: Quarterly -by Mark Brown, Dow Jones Newswires; + 44 (0)207 842 9485, [email protected] (END) Dow Jones Newswires June 30, 2010 10:27 ET (14:27 GMT)