21st Jun 2016 14:21
LONDON (Alliance News) - F&C Commercial Property Trust Ltd on Tuesday said it has extended the repayment date for its existing GBP50.0 million loan facility with Barclays Bank PLC, and has agreed a further GBP50.0 million revolving credit facility with the bank.
The FTSE 250-listed commercial property investment trust said the repayment date for the GBP50.0 million term loan facility, agreed between its subsidiary SCP Estate Holdings Ltd and Barclays, is now June 21, 2021, having previously stood at June 2017.
In addition to this, F&C Commercial Property said it has agreed a GBP50.0 million revolving credit facility with Barclays over the same period, which it said it will use for ongoing working capital purposes, as well as providing the flexibility to acquire "further property should the opportunity arise".
After the refinancing, F&C Commercial Property said its available borrowing comprises of a GBP260.0 million term loan with Legal & General Pensions Ltd, with a maturity date of December 31, 2024, and the GBP50.0 million term loan facility provided by Barclays together with the undrawn GBP50.0 million revolving credit facility.
F&C Commercial Property said it has terminated its existing interest rate hedging arrangements, which it had entered into in connection with the previous Barclays facility, at a cost of GBP1.4 million, and has entered into a new GBP50.0 million interest rate swap connected to the extended Barclays term facility, which has fixed interest payable at 2.5% per year. This, F&C Commercial Property, said is a reduction on the interest rate of the previous Barclays facility, which was 4.9%.
The weighted average interest rate on F&C Commercial Property's total current borrowings is 3.3%, the company said, down 0.3% since the refinancing.
Shares in F&C Commercial Property were up 1.5% at 121.70 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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