LondonMetric Property has refinanced £1.5bn of unsecured term loans and revolving credit facilities (RCF).
The two new facilities – £1.3bn syndicated and £200m bilateral – replace nearly all of the REIT’s existing unsecured facilities that mature over the next four years.
LondonMetric said the refinancing materially enhances its debt structure by delivering an expected annualised cash saving of circa £6m; diversifying its lender base with two new lenders added to the eight existing; and improving its weighted average debt maturity, removing material refinancing risk until full-year 2029.
The average margin on the new facilities is 49bps lower at 105bps (drawn basis) and average commitment fees are 19bps lower.
Following the refinancing, only £186m of debt expires over the next two years, which will be met from sales and/or circa £0.5bn of undrawn debt facilities.
Martin McGann, chief financial officer of LondonMetric said: “This refinancing significantly enhances our capital structure, reduces our cost of debt and further strengthens our diverse lender relationships. The structure supports our wider funding strategy as we look ahead to further potential debt capital markets issuance, continued disciplined growth and managing our finance costs to ensure they don’t increase materially over the next few years.”
Barclays Bank and NatWest acted as joint co-ordinators and bookrunners on the £1.3bn syndicated facility.
