Supermarket Income REIT (SUPR) has completed a £445m refinancing deal. The £375m syndicate and £70m bilateral facilities will refinance all of SUPR’s existing unsecured loan facilities maturing over the next two years.
The new agreement comprises a: £225m syndicated three-year revolving credit facility (RCF); £45m bilateral three-year RCF; £150m syndicated five-year RCF; and a £25m bilateral five-year RCF. Each facility benefits from two one-year extension options.
The company has established two new banking relationships with Lloyds Bank and ABN AMRO Bank, while retaining its core banking relationships within existing facilities with Barclays Bank, HSBC UK Bank, ING Bank, and The Royal Bank of Scotland International.
The average margin across the facilities is 1.18% above SONIA (drawn basis), representing an annual interest cost saving of circa £0.3m. The new facilities will be used to repay the existing Barclays, ING and syndicated RCFs, increasing the company’s weighted average debt maturity from 2.9 years to 3.8 years.
Mike Perkins, CFO of Supermarket Income REIT, said: “The strong support from our existing lenders and new partners in Lloyds and ABN AMRO reflects the ongoing appeal of grocery assets within the lending community. We continue to access bank finance at attractive rates, underlining the quality of our portfolio, the confidence in our strategy, and the strength of our relationships. The improvement in our debt maturity profile further enhances our capital structure which remains well diversified by maturity and source.”
Barclays Bank PLC acted as sole coordinator.
