Slaughter and May is advising SEGRO European Logistics Partnership on its debut issue of €500m Guaranteed Notes due 2023 and associated refinancing exercise

Slaughter and May is advising SEGRO European Logistics Partnership (“SELP”) on its debut issue (the “Issue”) of €500m 1.25 per cent. Guaranteed Notes due 2023 (the “Notes”).  The Notes will be issued by SELP Finance S.à r.l. and guaranteed by SEGRO European Logistics Partnership S.à r.l., and are intended to be listed on the Main Market of the Irish Stock Exchange.  The net proceeds of the Issue will primarily be used to prepay the majority of SELP’s secured bank facilities.  BNP Paribas, Morgan Stanley and The Royal Bank of Scotland are acting as Joint Lead Managers in relation to the Issue.

As part of the Issue, SEGRO European Logistics Partnership S.à r.l. obtained a long-term issuer rating of Baa2 (stable outlook) by Moody’s Investor Service Ltd (“Moody’s”) and a long-term issuer default rating of BBB+(EXP)(stable outlook) by Fitch Ratings (“Fitch”).  The Notes are expected to be rated Baa2 by Moody’s and BBB+ by Fitch.

The Issue forms part of a wider refinancing exercise pursuant to which SELP intends to move from predominantly secured funding to a position of primarily utilising unsecured funding. 

As part of the refinancing exercise, Slaughter and May is also advising SELP in relation to its entry into a €200 million revolving credit facility to be provided by BNP Paribas and The Royal Bank of Scotland, and the repayment of certain of SELP’s existing secured bank facilities and associated releases of security.

Arthur Cox are advising on Irish law (including in their capacity as Listing Agent in respect of the Notes) and Elvinger Hoss Prussen are advising on Luxembourg law.

SELP was established in October 2013 as a joint venture between SEGRO plc (“SEGRO”) and a Canadian pension fund.  SELP is a leading continental European logistics owner and developer which owns over €2 billion of big box warehouses and development land across eight countries in continental Europe.  SEGRO owns a 50 per cent. interest in, and acts as venture advisor to, and property and development manager for, SELP.

SEGRO is a UK Real Estate Investment Trust, and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages over six million square metres of space valued at £7.4 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in nine other European countries.

Matthew Tobin Partner
Harry Bacon Partner