Tritax Big Box REIT plc NEW £500 MILLION SECURED DEBT FACILITY AGREED (0073B)
October 02 2015 - 1:00AM
UK Regulatory
TIDMBBOX
RNS Number : 0073B
Tritax Big Box REIT plc
02 October 2015
2 October 2015
TRITAX BIG BOX REIT PLC
(the "Company" or "Group")
NEW GBP500 MILLION SECURED DEBT FACILITY AGREED
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that the Company has agreed a new five year GBP500
million secured debt facility (the "Facility") with a syndicate of
four lenders.
The Facility comprises a GBP320 million Term Loan which will be
drawn in full immediately, a further GBP80 million Term Loan
available to draw up until the first anniversary of the Facility,
and a GBP100 million Revolving Credit Facility which includes a
GBP10 million Overdraft component.
The Facility has an opening margin of 1.40% above three-month
LIBOR and will reduce the Group's average margin payable on its
debt facilities, when fully drawn, from 1.77% to 1.42%.
The Facility will refinance GBP253.34 million of the Group's
existing debt currently provided by Barclays Bank PLC and Santander
UK plc. The Group's existing loans with Landesbank Hessen-Thüringen
Girozentrale, London Branch ("Helaba") will remain outside the
Facility and are unaffected.
The drawing of the initial Term Loan will increase the
portfolio's loan to value ratio ("LTV") to approximately 35%. When
taking into account the funding requirements of the Group's
existing commitments, it will be looking to increase the LTV
towards the targeted level of 40% in the near term. The Facility
extends the Group's average unexpired loan term to five years.
Subject to lender support, the Facility has two, twelve month,
extension options exercisable after year one and year two
respectively. The Facility can also be increased to GBP700 million,
again subject to lender support.
The Company is required to put in place interest rate hedging in
respect of a minimum of 75% of aggregate drawn debt under the
Facility, which it will look to execute in the near term.
The syndicate for the Facility consists of Barclays Bank PLC,
Helaba, Wells Fargo Bank, N.A. and ING Real Estate Finance (UK)
B.V., who also all acted as mandated lead arrangers. Barclays Bank
PLC will act as co-ordinator, facility agent, book runner and
Security Agent for the Facility.
Colin Godfrey, Partner of Tritax, commented:
"This is a very attractive loan package that will immediately
reduce the Group's average cost of borrowing by 35 bps, extend our
average unexpired loan term and bring the Group's LTV ratio more in
line with the Group's stated medium term target. The Facility will
also provide the debt resource needed to support our ongoing growth
plans, building upon our strong financial performance.
The Facility offers the Group substantial operational
flexibility and includes an option to draw against our current and
future forward funded investment assets at the same margin.
We are pleased to be welcoming both Wells Fargo and ING as new
lenders to the Group, alongside Barclays and Helaba."
For further information, please contact:
Tritax Group via Newgate (below)
Colin Godfrey (Partner,
Fund Manager)
Newgate (PR Adviser) Tel: 020 7680 6550
James Benjamin Email: tritax@newgatecomms.com
Alex Shilov
Jefferies International Tel: 020 7029 8000
Limited
Gary Gould
Stuart Klein
Alex Collins
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
NOTES:
Tritax Big Box REIT plc is a real estate investment trust to
which Part 12 of the UK Corporation Tax Act 2010 applies ("REIT").
The Company invests in and asset manages a portfolio of
well-located, modern "Big Box" assets, typically targeting
buildings greater than 500,000 sq. ft., let to institutional-grade
tenants on long-term leases (typically between 12 and 25 years in
length) with upward-only rent reviews (providing the potential for
inflation linked earnings growth), and with geographic and tenant
diversification throughout the UK. The Company seeks to exploit the
significant opportunity in this sub-sector of the UK logistics
market owing to strong tenant demand in high growth areas of the
economy and limited stock supply. The Company is the first listed
vehicle to give pure exposure to the "Big Box" asset class in the
UK.
Further information on Tritax Big Box REIT is available at
www.tritaxbigbox.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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