Real estate investment trust Supermarket Income REIT has refinanced its existing loan with Bayerische Landesbank (BLB) with a new three year £86.9 mln (€99.0 mln) term loan.
The secured, interest-only, loan, which replaces the three existing tranches, matures in March 2026, priced at a margin of 1.65% above sterling overnight interbank average rate.
This has been fully hedged for the term of the facility using an interest rate swap to a fixed rate of 4.29%, including margin.
The cost of the hedging instrument for the new facility was £2.8 mln (€3.19 mln), more than fully covered from £3.3 mln (€3.8 mln) in proceeds from the termination of the previous hedging instrument in place for the existing facilities.
All of Supermarket Income REIT's drawn debt is fixed, with a weighted average cost of debt of 2.9%.
Ben Green, director of Atrato Capital Ltd and investment adviser to Supermarket Income REIT, said: ‘We are pleased to continue our relationship with Bayerische Landesbank which has been a key debt funding partner to the company. Refinancing all of the existing facilities with BLB has allowed the company to extend the term to three years and achieve a competitive cost of finance.’
