Savills (LSE:SVS) confirmed it has agreed to issue $350m of new unsecured fixed-rate US private placement notes, completing the refinancing of the bridge facility it used to fund its acquisition of Eastdil Secured.
The notes span three, five, seven and 10-year maturities and were placed with six institutional investors, including three new lenders to the London-listed property adviser, carrying the same financial covenants as the group's other unsecured debt. And, subject to contract, the funds will be drawn on 2 December to repay the remaining $350m outstanding under the $800m bridge facility Savills entered in March to finance the Eastdil Secured deal and related transaction costs.
"We are pleased with the considerable investor appetite shown for this issue, the second time Savills has accessed the US private placement market", said Nick Sanderson, group chief financial officer, adding that combined with the group's $450m three-year term bank loan, the bridge facility is now fully refinanced at all-in pricing of 5.7%, within its expected range of 5.5% to 6.0%.
Savills completed the acquisition of Eastdil Secured on 31 July, funding the deal through a mix of debt and 27.66m new shares issued to Eastdil's equity holders, representing approximately 16% of the enlarged group's share capital. The combined business was rebranded Eastdil Secured Savills from 1 August and is expected to contribute five months of results to the group's 2026 year-end figures.
Sanderson said Savills expects net debt to EBITDA to stand at approximately 1.0 times by the end of 2027.
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