24th Aug 2015 06:50
LONDON (Alliance News) - John Laing Infrastructure Fund Ltd Monday said it has secured a new revolving credit facility with a consortium of banks to replace its existing facility.
The FTSE 250-listed infrastructure investment company said it has secured a GBP180.0 million revolving credit facility with Royal Bank of Scotland PLC, HSBC Bank PLC, ING Bank NV and the Commonwealth Bank of Australia.
John Laing said the facility replaces its existing GBP150.0 million facility with RBS, Lloyds TSB Bank PLC and ING Bank, and said there are no cancellation fees.
The credit facility will be used primarily to fund acquisitions and will be repaid through equity issuance, which is in line with its "stated strategy", it said.
The new facility will have a margin of 1.75% over LIBOR, making both the margin and associated commitment fees significantly lower than on the previous facility which had a margin of 2.3% to 2.75%, it said.
"Under its investment policy, John Laing has the ability to raise debt of up to 25% of its total assets, though it should be noted that this debt facility is intended to be additional resource and not structural financing," said John Laing.
"Given current favourable market conditions, John Laing has taken the decision to refinance its revolving credit facility. This opportunity allows John Laing to secure a larger funding facility at materially lower costs providing the fund with the capacity to move into its next phase of international growth," said investment adviser Andrew Charlesworth.
By Joshua Warner; [email protected]; @JoshAlliance
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