7th Aug 2015 06:17
LONDON (Alliance News) - Grainger PLC said Friday that it has signed a planned refinancing of its syndicated bank facility, reducing its cost and extending its maturity.
The London-listed residential property owner and manager said the new GBP580 million facility, which will represent 44% of total Grainger facilities of GBP1.3 billion, will mature in August 2020 extended from July 2016. The margin on the facility has been reduced by 50 basis points to 170 basis points.
Grainger said the facility structure enables further pricing benefits to be gained at future lower levels of loan to value. The group also said average cost of debt reduces to 4.6% from 5.1% as at March 31, 2015 and average maturity of group debt is now 5.8 years compared to 4.4 years as at March 31, 2015.
Grainger said net debt stood at around GBP1.1 billion as at July 31 2015 following significant recent investment into regional market rented assets.
"We have been making considerable progress in diversifying our sources of funding and reducing the cost of our debt facilities, which this refinancing further supports. We will continue to review all other sources to ensure that we have the most competitive cost of debt to pursue our strategy of accelerating our push into the private rented sector," said Grainger Finance Director Mark Greenwood.
By Preten Patel; [email protected]
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