Slaughter and May is advising Derwent London plc ('Derwent London') on the launch of an offering of £150 million of convertible bonds due 2019 ('the Bonds').

The Bond offering, which was announced on 17 July 2013, forms part of Derwent London's wider financial strategy to lower its debt costs, extend maturities and provide an appropriate mix of secured and unsecured debt for the Derwent London Group taking advantage of current favourable market conditions.

The Bonds are expected to be issued by Derwent London Capital No. 2 (Jersey) Limited, a wholly-owned subsidiary of Derwent London incorporated in Jersey, and will be guaranteed by Derwent London. The Bonds will be senior and unsecured obligations of the Derwent London Group and will be subject to a negative pledge. The Bonds will be issued at par and are expected to carry a coupon of between 1.25% and 1.75% per annum payable semi-annually in arrear and will, subject to certain conditions, be convertible into fully paid ordinary shares of Derwent London. It is intended that an application will be made for the Bonds to be listed on the Official List and admitted to trading on the Professional Securities Market of the London Stock Exchange prior to the first interest payment date (expected to be 24 January 2014).

Barclays Bank PLC and The Royal Bank of Scotland plc are acting as Joint Global Coordinators and Joint Bookrunners and HSBC Bank plc, J.P. Morgan Securities plc and UBS Limited are acting as Joint Bookrunners for the offering. Rothschild is acting as financial adviser to Derwent London for the offering.

CONTACTS
Financing: Matthew Tobin (partner), Andrew Chaplin (associate); Corporate and Commcerial: Nilufer von Bismarck (partner); Tax: William Watson (partner), Edward Milliner (associate)