LondonMetric has completed £780m of debt refinancing, the REIT announced this morning, including newly revealed revolving credit facilities worth £400m.
The investor said that as well as having tied up a £380m private debt placement announced in March, it had sealed the deal on two more RCFs.
These include a £175m facility for a five-year term with two plus one-year options with Wells Fargo, and a £225m facility for a three-year term with two plus one-year options with NatWest, Barclays, HSBC and Santander.
The RCFs replace an existing £444m facility due to mature in April next year, and two bilateral loans with Wells Fargo and HSBC, both worth £75m. The company will also repay an existing £130m secured debt facility with German commercial bank Helaba.
The facilities also include green performance targets, which have been set in line with LondonMetric’s own sustainability targets, focusing on EPC ratings, renewable installations, and developments meeting a minimum BREEAM standard of very good. Non-compliance could lead to a to basis point penalty on the RCFs’ pricing.
Martin McGann, LondonMetric finance director, said: “We have undertaken very significant refinancings of our debt position and are delighted with the support shown by our RCF lenders and the increased diversification of our private placement investors in North America and the UK. These refinancings lengthen our debt maturity and reduce our overall cost of borrowing.”
The previously announced £380m debt placement, which has also been completed, has a blended maturity of 11.1 years and a blended coupon of 2.27%. Overall, the refinancings increase the company’s loan maturity by four years to 8.2 years and the average cost of debt on a drawn basis will be 2.6%.
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