FINANCE: Storage company Big Yellow Group has agreed a £145m loan from Lloyds Bank and HSBC as part of a wider refinancing package.
The bank loans expire in August 2019; 50% of the bank facility is term and 50% is revolving.
On completion the £145m, five-year facility has £72m withdrawn.
In addition, the firm has signed a new £70m facility with M&G Investments for seven years from the date of drawdown which can occur at any time up to 29 June 2015.
The loan will be secured by a portfolio of 15 freehold self-storage centres.
Big Yellow Group has also agreed a short-term bridging facility of £70m with Lloyds Bank that is repayable immediately on the drawdown of the M&G loan.
It has cancelled £40m of its existing interest rate derivatives at a cash cost of £1.4m.
John Trotman, chief financial officer of Big Yellow, said: “These committed facilities coupled with our existing £95.7m loan from Aviva have significantly increased the average unexpired term of our debt facilities to 7.8 years. In total we now have £238m drawn out of our total committed facilities.”
joanna.bourke@estatesgazette.com
