18th Mar 2015 07:45
LONDON (Alliance News) - FTSE 250-listed property company Shaftesbury PLC on Wednesday said it has secured a new 15-year, GBP130 million term loan with Aviva Commercial Finance Ltd, the commercial finance arm of FTSE 100-listed insurer Aviva PLC.
The loan is secured on certain properties held by a Shaftesbury subsidiary and has a fixed interest rate of 3.2% throughout the duration of the loan.
On drawing the Aviva loan, Shaftesbury will cancel a GBP100 million revolving credit facility in place with Nationwide Building Society and said it intends to refinance its remaining loan with Nationwide in due course.
Additionally, Shaftesbury said it will terminate GBP70 million of interest rate swaps at a cost of GBP28.1 million.
"We are pleased to have secured this financing during a period of extremely low gilt yields, and with a lender of the calibre of Aviva. Long-term funding is a natural fit with our business model and portfolio of good quality assets with secure income streams," said Shaftesbury Finance Director Chris Ward.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
AvivaSHB.L