Intu, the UK shopping centers company, sold its £350 million ($556 million) of 16-year, commercial mortgage bonds on Wednesday, according to Standard & Poor’s.

The bonds priced with a coupon rate of 4.25%, according to the the ratings agency, which cited pricing information from Informa.

The series 3 bond is rated ‘A’ by S&P and is the third issuance from the funding platform that Intu Properties PLC (Intu) established in 2013. To date the platform has issued £800 million via the series 1 and series 2 interest-only rated notes.  

Intu can issue up to £5 billion under its program. The latest transaction will consist of a single series of ‘A’ rated notes.

Intu owns some of the U.K.'s leading shopping centers. The latest transaction will be backed by the Derby and Chapelfield shopping centers — both are located in the U.K. and have a combined market value of £679 million. The issuance will increase the series' loan-to-value ratio to 47.70% from 46.70%.

Lloyds Bank and UBS managed the deal, according to the S&P presale report.

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