Italian REIT Beni Stabili has refinanced its €1.7 bn Telecom Italia portfolio with €550 mln worth of new credit facilities from a pool of Italian and international banks

Italian REIT Beni Stabili has refinanced its €1.7 bn Telecom Italia portfolio with €550 mln worth of new credit facilities from a pool of Italian and international banks

The Milan-based Group is forking out €653 mln to repay the existing loan on the assets, and has obtained €550 mln of new debt to finance the portfolio.

The facilities consist of a €300 mln six-year mortgage loan; a €200 mln two-year corporate loan; and a €150 mln bridge corporate loan in anticipation of the planned share capital increase, which is planned for later this year and is backed by majority shareholder Foncière des Régions.

Lenders Banca IMI, BNP Paribas, Mediobanca – Banca Di Credito Finanziario and UniCredit Corporate & Investment Banking have also committed to take on any unsubscribed share at the end of the offering.

'Thanks to the more favourable terms the company wil be able to exceed its objective of a reduction in the recurring cash financial expenses by more than €30 mln on an annual basis and will improve the average cost of long-term debt by more than 90 bps,' the company said in a statement.