Supermarket Income REIT has completed a £170m refinancing through its first private placement debt issuance and a new unsecured bank facility.
The REIT has signed and completed an agreement with a group of institutional investors for a private placement of €83m of new senior unsecured notes, which have a maturity of seven years and a fixed rate coupon of 4.44%.
The company has also refinanced its existing £97m secured debt facility with Deka through a new £100m unsecured debt facility with ING Bank, London branch.
The new interest-only facility comprises a £75m term loan and a £25m revolving credit facility. The facility has a maturity of three years and has two one-year extension options at the lender’s discretion. It is priced at a margin of 1.55% over SONIA and benefits from forward starting hedges, which cap the interest rate at an all-in cost of 3% until January 2026.
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “We are very pleased at the support we have received from new institutional investors both for the company’s new unsecured private placement and for the refinancing of the secured facility. The quality of our portfolio continues to appeal to new lenders and allows the company to access debt financing on favourable terms.”
