UK industrial REIT Segro has agreed new bank facilities totalling €460 mln with a banking syndicate including Barclays, Bank of China, BNP Paribas, HSBC, Lloyds, KBC, Santander and Bank of America Merrill Lynch.
UK industrial REIT Segro has agreed new bank facilities totalling €460 mln with a banking syndicate including Barclays, Bank of China, BNP Paribas, HSBC, Lloyds, KBC, Santander and Bank of America Merrill Lynch.
The agreement includes a new €225 mln revolving multi-currency, five year syndicated bank facility, replacing existing facilities totalling €395 mln; and an existing revolving multi-currency syndicated bank facility which has been amended and extended to reduce the margin and the size as well as extending the maturity by 18 months to May 2018.
The initial margin payable under both the above facilities is 125 basis points. This is 25 basis points lower than the average bank margin payable by the group prior to this refinancing.
The Royal Bank of Scotland and JPMorgan Chase were involved in the amended facility together with six of the other banks.
With the new bank facility in place, Segro has cancelled in full a €240 mln syndicated facility which was due to mature in December 2015, a €100 mln bilateral facility which was to mature in July 2014 and a €55 mln bilateral facility maturing in November 2016.
Commenting on these transactions, Justin Read, Segro’s Group Finance director, said: 'This refinancing makes our committed bank facilities more cost effective, whilst improving the debt maturity profile of the group. The restructured facilities will also provide an appropriate level of unsecured bank funding to support the ongoing delivery of our strategy, whilst ensuring that Segro continues to maintain a strong liquidity position.'