AIG has provided a £900m financing package to Camden markets owner Market Tech.
The package includes an initial £300m facility to be drawn down immediately with further tranches available, subject to conditions, in phases over the next few years.
The loan replaces existing debt facilities from Nomura and Bank of Cyprus totalling £202m and will be used to help the company deliver its acquisition and development programme.
The margin on the new loan is substantially lower than that which it replaces, averaging 1.9% over the term.
The drawdown of the initial £300m will put Market Tech’s loan-to-value ratio at circa 35%.
An undrawn £60m working capital facility from Market Tech’s majority shareholder, Citwax Investment, will no longer be available to the company as a result of the new loan.
Market Tech was advised by UBS Investment Bank, which acted as lead adviser.
Charles Butler, chief executive of Market Tech Holdings, said: “The facility provides the company with stable long-term funding, enabling us to drive shareholder value by delivering on our medium- and long-term acquisition and development strategy.”
