1st Apr 2020 08:37
(Alliance News) - Big Yellow Group PLC on Wednesday said it has obtained a seven-year GBP35 million debt facility with Aviva PLC, increasing its total Aviva debt facilities to GBP117.5 million.
The self storage firm said the new GBP35 million facility has an all-in cost of 1.96% and is secured over its existing Aviva security pool containing 15 stores. This all-in cost will shrink to 1.91% once Big Yellow completes the installation of 50 kilowatt hours capacity solar panels at three of its stores.
As a result of the new loan, Big Yellow's debt facilities from Aviva now total GBP117.5 million, with GBP82.5 million of this to "continue to amortise down to GBP60 million over the remaining seven years of the loan."
Surrey-headquartered Big Yellow explained that the new facility gives it a GBP73 million headroom of undrawn bank facilities and cash.
The company's average cost of debt on drawn down facilities stands at 2.6% following the new loan, with the marginal cost of revolving credit facility bank debt still 1.35%.
"The board has over the last few years worked to ensure a spread of debt maturity dates and to procure debt from a range of providers. The group's earliest maturity is on its GBP70 million M&G loan in June 2023 and the group's debt has an average maturity of 4.9 years," said Big Yellow.
Shares in Big Yellow were down 3.0% at 973.46 pence in London on Wednesday morning.
By Anna Farley; [email protected]
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