14th Oct 2015 07:06
LONDON (Alliance News) - Big Yellow Group PLC Wednesday said it has secured an extension and reduced the cost of debt of its existing GBP170.0 million credit facilities.
The FTSE 250 storage company said the amendments made to the facilities and the extension will benefit the company by lowering the average cost of debt.
The expiry of the GBP170.0 million loan has been extended to October 2020 from its previous expiration date of August 2019, with an option to extend this further to October 2021.
The margin payable of the income cover ratchet has reduced by 25.0 basis points. The revolving credit facility will now pay a margin of 125.0 basis points and the term debt will pay a margin of 150.0 basis points. Big Yellow said, if both the term and revolving facilities were fully drawn down to GBP85.0 million each, the weighted average would 137.5 basis points.
Big Yellow has also secured the option to increase its revolving loan facility by a further GBP80.0 million any time before the expiration date. That means its revolving credit facility could be pushed up to GBP165.0 million, which in turn would push its total credit facilities to GBP250.0 million.
"We are pleased to have extended the term of our loan and reduced the cost of our debt, whilst also giving us further capabilities to fund future growth opportunities," said Chief Financial Officer John Trotman.
Big Yellow shares were down 1.4% to 684.0 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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