Fourteen banks have signed a deal to provide British Land with a new £785m revolving unsecured credit facility over the next five years.
The facility was agreed at an initial margin of just 115 basis points, highlighting the banks’ eagerness to lend to Britain’s second-biggest propco, whose assets include 10 Portman Square, W1.
In contrast, Capital & Counties’ recent £665m, five-year revolving facility was priced at 155bps for the first third and slightly higher for the remainder.
Among the participating banks are several that do not currently lend to BL on an unsecured basis, including Sumitomo Mitsui Banking Corporation, Royal Bank of Canada, Wells Fargo and BNP Paribas.
Mitsui was also among the joint co-ordinators and bookrunners of the facility, together with Lloyds Bank, Santander Global Banking & Markets and the Bank of Tokyo-Mitsuibish UFJ. Barclays, Bank of China, HSBC, JP Morgan Chase, Helaba, Crédit Agricole Corporate and Investment Bank, and Royal Bank of Scotland also provided commitments.
Lloyds is the facility agent.
The company simultaneously announced it had closed and drawn a £200m US private placement which it signed in August 2013.
bridget.oconnell@estatesgazette.com
