Shaftesbury completes refi with new £300m facility
Shaftesbury Capital has signed a £300m, three-year unsecured loan agreement with a trio of banks.
Chief financial officer Situl Jobanputra said: “We are pleased to have completed the early refinancing of the £576m loan through this facility and other initiatives this year, which highlight the attractiveness of our exceptional portfolio and further enhance our capital structure.”
The new facility, which comprises a term loan and revolving credit elements, includes a £125m uncommitted accordion feature, along with the option to extend the tenor by a further two periods of one year each, subject to lender approval.
Shaftesbury Capital has signed a £300m, three-year unsecured loan agreement with a trio of banks.
Chief financial officer Situl Jobanputra said: “We are pleased to have completed the early refinancing of the £576m loan through this facility and other initiatives this year, which highlight the attractiveness of our exceptional portfolio and further enhance our capital structure.”
The new facility, which comprises a term loan and revolving credit elements, includes a £125m uncommitted accordion feature, along with the option to extend the tenor by a further two periods of one year each, subject to lender approval.
The facility, along with part of Shaftesbury’s existing cash resources, will be used to repay the remaining £376m balance from the unsecured loan that was raised to fund the repayment of the Shaftesbury secured bonds during the merger. That loan was due to mature in 2024.
Shaftesbury has approximately £200m in cash after recent asset sales and the £300m Covent Garden revolving credit facility is as yet undrawn.
As a result of the refinancing, the weighted average maturity of the West End REIT’s drawn debt will be extended to more than five years. The current weighted average cost of debt is unchanged at 4.2%, which reduces, thanks to hedging, to an effective cash cost of 3.3%.
The facility was provided by Santander UK, HSBC UK and BNP Paribas, London branch.
Shaftesbury Capital was advised by Rothschild & Co and Herbert Smith Freehills.
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