1st Oct 2013 09:23
LONDON (Alliance News) - Derwent London PLC Tuesday said it signed a GBP550 million unsecured five year bank facility with HSBC, RBS, Barclays and Lloyds, with HSBC acting as the agent.
Derwent, which owns a portfolio of commercial real estate predominantly in central London valued at GBP3.1 billion on June 30, said the new arrangements were secured at "competitive" rates.
"Our new unsecured bank facility brings greater operational flexibility in relation to individual properties and the release of security on the facilities repaid provides the group with a pool of unencumbered assets of over GBP1.8 billion," Damian Wisniewski, Finance director, said in a statement.
The arrangement replaces the GBP650 million secured bank facilities expiring between April 2014 and January 2017 and follows Derwent's July issuing of convertible bonds due in July 2019.
Derwent, which has a current level of net asset gearing of 40.4% based on June property values, said the margin payable under the new facility is 160 basis points over the London Interbank Offered Rate for net asset gearing levels of up to 50%. The margin increases at higher levels of gearing with a maximum permitted level of 160%.
Derwent shares were Tuesday quoted at 2,367 pence, down 2 pence, or 0.1%.
By Samuel Agini; [email protected]; @samuelagini
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