Central London REIT Derwent London has signed a new £550m, five-year unsecured bank facility
The revolving credit facility is being provided by the group’s principal relationship banks, HSBC, RBS, Barclays and Lloyds, with HSBC as agent.
It replaces £650m of secured bank facilities expiring between April 2014 and January 2017, and follows on from the group’s issue in July of £150m of convertible bonds due in July 2019.
The margin payable under the new facility is 160 basis points over LIBOR for net asset gearing levels of up to 50%. The margin increases at higher levels of gearing, with a maximum permitted level of 160%.
The current level of group net asset gearing is 40.4%, based on June 2013 property values.
Finance director Damian Wisniewski said: “Our new unsecured bank facility brings greater operational flexibility in relation to individual properties and the release of security on the facilities repaid provides the group with a pool of unencumbered assets of over £1.8bn.
“We are pleased to have put these new arrangements in place at competitive pricing.”
bridget.o’connell@estatesgazette.com
