17th Jan 2019 08:28
LONDON (Alliance News) - Property investor RDI REIT PLC on Thursday announced it has refinanced early its largest debt facility in the UK with a trio of banks.
The total facility is GBP275 million, split equally between a term loan and a revolving credit facility.
The loan is from Barclays PLC, HSBC Holdings PLC, and Royal Bank of Scotland Group PLC.
RDI so far has drawn down most of the facility, GBP250 million, reflecting an expected loan-to-value of approximately 47%, the company said. This is within its overall loan-to-value target range of between 40% and 50%.
RDI said the majority is hedged at "an attractive rate", and combined with its ratcheted margin structure is anticipated to carry a total interest cost of between 3.0% and 3.3%.
The refinancing will extend its average debt maturity to just over 7 years, from 6.7 years at the end of August, and slightly increase its average interest rate to 3.5%, from 3.4% in August.
"We are pleased to have secured attractive terms on the extension of our principal UK debt facility with built-in flexibility to manage capital efficiently through the revolving credit facility," said Stephen Oakenfull, deputy chief executive of RDI.
"In the current uncertain economic environment, we are pleased to have secured the early extension of this facility."
Shares in London were 0.3% lower early Thursday at 29.57 pence each, while in Johannesburg they were flat at ZAR5.20.
Related Shares:
RDI.L