15th Apr 2014 09:32
LONDON (Alliance News) - Property company Segro PLC Tuesday said it had agreed new and amended bank facilities totalling EUR460 million, or GBP380 million, at lower interest rates than its previous facilities.
In a statement, the developer of industrial premises and warehouses said the facilities are made up of a new EUR225 million revolving bank facility, and a reduced, but amended, bank facility of EUR235 million.
The EUR225 million facility is a multi-currency, five-year facility which replaces existing facilities of EUR395 million. The lenders are Barclays, Bank of China, BNP Paribas, HSBC, Lloyds, KBC Bank, Santander, and Bank of America Merrill Lynch.
The EUR235 million facility is an existing facility which has been amended to reduce the margin and commitment fees in the facility, reduce its size from EUR385 million, and extend its maturity by 18 months to May 2018. Lenders include six of those on the other facility plus The Royal Bank of Scotland and JPMorgan Chase Bank.
Segro said the initial margin payable under both the facilities is 125 basis points, which is about 25 basis points lower than the average bank margin payable prior to the refinancing. The other principal terms and conditions of the facilities are in line with those previously contained in its unsecured bank financings.
"This refinancing makes our committed bank facilities more cost effective, whilst improving the debt maturity profile of the group. The restructured facilities will also provide an appropriate level of unsecured bank funding to support the ongoing delivery of our strategy, whilst ensuring that SEGRO continues to maintain a strong liquidity position," Segro Finance Director Justin Read said in a statement.
Segro shares were up 0.8% at 331.90 pence Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Segro