Hibernia agrees unsecured €400m refinancing
Hibernia REIT has refinanced its €400m (£361m) secured revolving credit facility, with a €320m unsecured revolving credit facility and €75m of unsecured US private placement notes.
Previously the secured facility, repayable in November 2020, had a margin of 2.05% and was the group’s sole debt facility. The new unsecured facility has a five-year term and a margin of 2% over EURIBOR. The notes have an average maturity of 8.5 years and a weighted average coupon (fixed rate) of 2.53%.
As a result of the refinancing, the weighted average maturity of the group’s debt has increased from 1.9 years to 5.7 years. The company’s current net debt position is €210m.
Hibernia REIT has refinanced its €400m (£361m) secured revolving credit facility, with a €320m unsecured revolving credit facility and €75m of unsecured US private placement notes.
Previously the secured facility, repayable in November 2020, had a margin of 2.05% and was the group’s sole debt facility. The new unsecured facility has a five-year term and a margin of 2% over EURIBOR. The notes have an average maturity of 8.5 years and a weighted average coupon (fixed rate) of 2.53%.
As a result of the refinancing, the weighted average maturity of the group’s debt has increased from 1.9 years to 5.7 years. The company’s current net debt position is €210m.
Tom Edwards-Moss, chief financial officer of Hibernia, said the facility “significantly extends the maturity of our debt and locks in longer-term, low-cost funding”. He added: “In addition, our move to an unsecured debt structure, the first Irish REIT to do so, ensures we have access to the widest possible range of funding options in future.”
The participating banks in the refinancing are Bank of Ireland, Wells Fargo, Barclays Bank Ireland and Allied Irish Banks. Bank of Ireland and Wells Fargo acted as joint coordinators, while Bank of Ireland is acting as agent.
The notes are being placed with a single institutional investor in a transaction priced on 26 October 2018 and pursuant to a note purchase agreement signed on 18 December 2018, which will close on 23 January 2019 and comprises two tranches: €37.5m at 2.36%, due 2026; and €37.5m at 2.69%, due 2029.
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