UK REIT Segro has agreed amended bank facilities totalling €780 mln from a consortium of 10 banks including Barclays Bank, Bank of China, BNP Paribas, Bank of America Merrill Lynch, HSBC Bank, Lloyds Bank, KBC Bank, the Royal Bank of Scotland, Santander and Wells Fargo.
The facilities comprise a €610 mln syndicated revolving credit facility and two bi-lateral revolving credit facilities of €100 mln and €70 mln each. Segro said that the net impact of the changes is a €110 mln increase in the unsecured committed bank facilities available to the group and an increase in their weighted average maturity from 25 months to 57 months (with an option to extend the €610 mln facility by a further 24 months).
Based on the group's forecast gearing level at June 30 2016, the margin payable under all three amended facilities will be 95 basis points. This is 27 basis points lower than the average bank margin payable immediately prior to this refinancing, the company added.
Commenting on these transactions, Justin Read, Segro’s Group finance director, said: 'This refinancing makes our committed bank facilities more cost effective, and smoothes and extends our debt maturity profile. The restructured facilities also provide an appropriate level of funding to support the ongoing delivery of our development strategy, whilst ensuring that SEGRO continues to maintain a strong liquidity position.'
