Grocery store specialist Supermarket Income REIT has refinanced £170 mln (€201.6 mln) of debt through a combination of new financing sources.
The company issued €83 mln in senior unsecured notes to institutional investors with a seven-year term and a fixed interest rate of 4.44%. The proceeds from this placement will be used to refinance existing euro-denominated debt incurred during the recent acquisition of a 17-store portfolio from Carrefour.
Additionally, Supermarket Income REIT secured a new £100 mln (€118.6 mln) unsecured loan from ING Bank, replacing an existing debt facility. This facility comprises a £75 mln (€88.9 mln) term loan and a £25 mln (€29.6 mln) revolving credit facility. The new loan has a three-year term, with the option for two one-year extensions, and an interest rate capped at 3% until January 2026.
The funds raised will be used to repay existing debt and support the company's ongoing operations.
Ben Green, director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, said:? ‘We are very pleased at the support we have received from new institutional investors both for the Company’s new unsecured private placement and for the refinancing of the secured facility. The quality of our portfolio continues to appeal to new lenders and allows the Company to access debt financing on favourable terms.’
Following the refinancing, Supermarket Income REIT's pro-forma loan-to-value stands at 37%.
