NewRiver REIT has agreed a new unsecured £240m facility comprising a £120m term facility commitment and a £120m revolving credit facility (RCF) with its existing lenders.
Barclays, HSBC, NatWest and Santander have all increased their commitments from £25m to £60m each.
The unsecured £120m term facility commitment, which matures in April 2030, replaces the £140m Mall Facility, which was retained following the acquisition of Capital & Regional in December 2024, principally due to its attractive 3.5% coupon, which runs until January 2027.
After that date, and until its maturity in January 2028, the Mall Facility would revert to a floating rate with a margin that is higher than the margin agreed under the term facility commitment. Delaying drawdown of the term facility commitment until January 2027 allows NewRiver to extract maximum value from the Mall Facility’s 3.5% coupon.
There is an option to extend the new facility by three additional one year terms to April 2033 and the facility can be drawn until the end of January 2027.
Prior to drawing the term facility commitment, NewRiver will pay a commitment fee based on a percentage of the margin, which is expected to cost £0.6m in the full-year 2027, which compares to an estimated £2m over the same period if the facility were to be drawn immediately, generating a saving of approximately £1.4m.
The new £120m RCF is £20m larger than the facility it replaces and extends the maturity from November 2026 to April 2031.
Will Hobman, chief financial officer at NewRiver, said: “We’ve refinanced both the Mall Facility and the existing revolving credit facility in a single transaction with the full support of our existing lenders, extending our debt maturity at a reduced margin and on a fully unsecured basis. With the first phase of our refinancing complete, we’re now focused on our growth agenda.
“We have the balance sheet, the platform and the pipeline to continue deploying capital where our origination strengths and operational expertise create value for shareholders. The next stage of our refinancing will focus on our £300m unsecured corporate bond, which matures in March 2028. With over £200m of cash and available liquidity and an improved maturity profile, we are well placed to manage that process from a position of strength.”
NewRiver was advised on the refinancing by Rothschild & Co.
