Supermarket Income REIT has completed a comprehensive debt refinancing exercise.
The REIT has cancelled two of its shorter-dated debt facilities, a £77.5m revolving credit facility with Barclays and Royal Bank of Canada, and a £62.1m unsecured debt facility provided by a syndicate of relationship banks.
It has also refinanced its £150m secured interest-only RCF with HSBC. The new package will have a £50m, secured, three-year RCF with a £75m uncommitted accordion option and two one-year extension options. It carries a margin of 170bps over Sonia.
In addition, a new £67m, unsecured, three-year debt facility has been completed with Sumitomo Mitsui Banking Corporation. The debt facility has two one-year extension options and a margin of 140bps over Sonia.
In total, the refinancing will reduce the REIT’s LTV from 40% to 34%.
Ben Green, director of the REIT’s investment adviser, Atrato Capital, said: ”We are very pleased to be working with new lender SMBC in the refinancing of the company’s debt facilities whilst benefitting from the continuing support of our existing relationship banks. We have also been able to extend hedging to further protect the company’s balance sheet at no additional cost.”
All of the REIT’s drawn debt is now either on a fixed rate or hedged to a fixed rate, representing a weighted average all-in cost of debt of 3.1%.
Green added: “The company continues to be able to access debt financing at attractive margins. However, given the current macroeconomic environment, the board considers it prudent to maintain a lower LTV.”
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