SSE has completed a private placement of senior notes with 19 US and UK based investors for a total consideration of £500 million (US$718.8 million) in 7, 10 and 11 year maturities.
SSE capitalised on investors' flexibility by selecting to take 66% of the transaction in GBP and 80% with a 6 month delayed drawdown. The transaction has a weighted average maturity of 9.6 years, and an all-in funding cost of 3.1% once the US$ tranche is swapped to GBP.
All agreements are subject to final documentation which is expected to be completed before the end of March. The net proceeds will be used to refinance maturing debt and fund SSE's capital programme.
In the last 12 months SSE has issued an 8 year €700 million (US$780.2 million) bond maturing September 2023 and refinanced £1.5 billion (US$2.16 billion) of Revolving Credit Facilities on improved terms, extending the maturity dates to 2020.
Gregor Alexander, Finance Director of SSE, said:
"In line with our proactive approach to funding, we are pleased that this attractively priced issue enables us to capitalise on current low interest rates and SSE's strong market rating to secure funding at a low cost, whilst at the same time maintaining a diverse source of debt investors. This is consistent with our commitment to maintaining a strong balance sheet and to progress our investment plans."