Debentures
General Information
The Company has five tranches of debenture outstanding:
- £98 million 6.75% First Mortgage Debenture Bonds due 2011
- £200 million 6.75% First Mortgage Debenture Bonds due 2020
- £310 million 5.357% First Mortgage Debenture Bonds due 2028
- £330 million 5.264% First Mortgage Debenture Bonds due 2035
- £110 million 5.005% First Mortgage Amortising Debenture Bonds due 2035
At 30 September 2007 debentures totalling £1.046 billion were outstanding benefiting from a combined security pool valued at £1.94 billion and common covenants.
The Company is required to deliver to the trustee, each year, a valuation of, and a report by the auditors on the net annual income from, the charged properties. If such valuation shows the aggregate value of the charged properties is more than one and two-thirds times the nominal value of Bonds outstanding and that the net annual income is not less than the gross annual interest on the Bonds, then the Company may withdraw mortgaged properties provided that these tests continue to be met. If such valuation shows that the aggregate value of the charged properties is less than one and one-half times the nominal value of Bonds outstanding or that the net annual income is less than the gross annual interest on the Bonds, the Company is obliged to provide additional security so that these tests are met. The company has the right to substitute properties of equal value and income in the security pool. The debentures benefit from a combined collateral pool which was valued by the Company’s valuers Knight Frank at £1,919,949,000 at 31 March 2007 with a net annual income, certified by the auditors, of £73,597,315. At 31 March 2007 the asset cover ratio is 1.835 times and income cover ratio 1.236 times.
Information on collateral pool
The debentures benefit from a combined collateral pool valued at £1,944,420,000 at 30th September 2007 with a net annual income of £82,782,136. The assets cover ratio at 30 September 2007 is 1.859 times and income cover ratio 1.391 times. The pool has 33 properties and 220 tenants. The geographic and sector diversity of the collateral pool by market value and net annual income is shown below:
Market Value Diversity by Sector
Market Value Diversity by Geography
Rent Diversity by Sector
Rent Diversity by Geography
The top 10 tenants contribute 49.50% to the pool’s income (by gross annual income) as follows:
1 Abbey National Plc 10.02%
2 Sec State for Environment 9.94%
3 Homebase Limited 9.24%
4 JP Morgan Chase Bank, NA 5.75%
5 Asda Stores Limited 3.73%
6 DSG Retail Limited 2.64%
7 HKUK ( Euston Road) Limited 2.23%
8 The General Medical Council 2.09%
9 NBC Apparel 2.82%
10 JJB Sports PLC 1.90%
The following properties are charged at the debenture pool at 30 September 2007.
Eastgate Centre, Basildon
Weston Lock Retail Park, Bath
Tollgate Centre, Colchester
St. James Retail Park, Dumbarton
Cuckoo Bridge Retail Park, Dumfries
Meadowbank Retail Park, Edinburgh
Eldon House, 2-3 Eldon Street, London
Euston Tower, Euston Road, London
1, 4 and 7 Triton Square, Euston Road, London
Portcullis House, Glasgow
Primark, Kingston upon Hull
Westside Retail Park, Leeds
Junction Road, Leek
Two Moorfields, Liverpool
Castlegate, Malton
St. James Retail Park, Northampton
33/35 Fargate, Sheffield
Teesside Retail Park, Stockton
Westgate Retail Park, Wakefield
Homebase, Wrexham
Teesside Park Phase 2, Stockton
Orbital Shopping Park, Swindon
The Beehive Centre, Cambridge
Homebase, Luton
Homebase, Ipswich
Homebase, Harrow Weald
Homebase, Walton on Thames
Springfield Retail Park, Elgin
Homebase, Richmond
338 Euston Road, London
Homebase, Camberley
350 Euston Road, London
2 and 3 Triton Square, Euston Road, London
On 18 March 2008 the Homebase Luton and Homebase Ipswich properties were released from the debenture pool.
On 11 April 2008 the Homebase Wrexham property was released from the debenture pool.