MEPC has said today that it will prepay around 20% of a £470m securitised loan, as the first stage of a wider refinancing.
The business park developer is making a £102m prepayment of the loan which was securitised via Opera Finance (MEPC), on the next interest payment date on 20 January 2011, ahead of the loan maturing in July 2012.
The CMBS, completed in November 2005 and arranged by Eurohypo, is secured against four of MEPC’s business parks – Milton Park in Oxfordshire, Birchwood Park in Warrington, Chineham Park in Basingstoke and Hillington Park in Glasgow, currently valued at £619m.
A statement from the group said that as a consequence of this prepayment, Birchwood Park will be released from the securitisation.
MEPC will use a combination of cash from recent disposals alongside a new five year facility of £62m from Eurohypo AG secured against Birchwood Park to make the payment.
As a result of the prepayment the loan to value ratio of the securitised loan reduces to 74%, and interest cover remains at 192%.
MEPC chief executive, Rick de Blaby: “MEPC’s early repayment of part of the CMBS Notes underscores both the company’s robust financial position and prudent debt management strategy.
“It was always our intention to proactively address the refinancing ahead of maturity, reduce the gearing and position ourselves for a new phase of activity and performance.
“Our valued long term relationship with Eurohypo is important in those aims.”
Michael Acratopulo, head of origination at Eurohypo said: “The new bank debt facility for Birchwood Park is a good quality asset for Eurohypo and also assists MEPC in their refinancing strategy.
“We are delighted to be working with an existing client in this way.”
Caroline Philips, head of structured debt at Eurohypo, added: “MEPC’s proactive management of their debt marks an important step in the refinancing of the Opera MEPC CMBS issue, and underlines the quality of the Opera platform.”
bridget.o’connell@estatesgazette.com
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