11th May 2015 08:02
LONDON (Alliance News) - McKay Securities PLC Monday said it has completed a GBP175 million refinancing of its debt.
In a statement, the real estate investment trust said the refinancing increased the scale of its facilities from GBP155 million previously.
McKay, which specialises entirely in the South East and London office and industrial markets, said Aviva Commercial Finance Ltd was introduced as a new lender, while "relationships" were maintained with three of its four lending banks.
The first of the the company's four standalone banking facilities had been due for renewal in February 2016.
McKay said the new loans have increased the overall maturity of its debt facilities to a weighted average length of 9.1 years from 1.6 years. The next expiry is not until December 2017.
The company's overall cost of debt will be reduced to 4.62% from 6.60%, further falling to 3.80% when fully drawn at current interest rates.
In addition, McKay said it has reduced its historic interest rate swaps by GBP35 million to GBP45 million at a cost of GBP13.1 million, a reduction of 14.3 pence of European Public Real Estate Association net asset value per share, equivalent to 6.0% of that figure as recorded at the end of September 2014 of 240 pence.
The terms of the refinancing and swap termination give rise to an increase of 2.6 pence in triple net asset value per share.
"On the back of GBP75 million of investment deals over the last 16 months, and as we continue to build out our GBP50 million development programme, we are delighted to secure this financing package. It gives a secure platform for our continued growth on what we believe to be attractive terms," Giles Salmon, finance director, said in a statement.
McKay shares were untraded on Monday. The shares last traded at 247.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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