Supermarket Income REIT finalises £90m refinancing deal

Supermarket Income REIT has completed a £90m refinancing through a new unsecured debt facility with Barclays. The facility will be used to refinance the company’s existing secured debt facilities with Wells Fargo and Bayerische Landesbank of £30m and £55.4m respectively. These facilities are due to mature in the next 12 months and will now be cancelled in full. The interest-only facility has a maturity of three years, with two one-year extension options at the lender’s discretion, and is priced at a margin of 1.55% above SONIA. The company intends to use the value of the existing interest rate hedges on the refinanced Wells Fargo and Bayerische Landesbank facilities to cap the interest rate on the facility at 5% for the three-year term, at no additional cost to the company. Following the debt refinancing and completion of the recently announced joint venture, the company has an expected pro-forma LTV of 31%. Robert Abraham, chief executive of Supermarket Income REIT, said: “This new facility continues our relationship with Barclays, a key funding partner to the company. Our strong relationships with existing lenders and the quality of Supermarket Income REIT’s portfolio continue to allow the company to access debt financing at attractive margins.”