22nd Apr 2014 08:52
LONDON (Alliance News) - Real estate investment trust Shaftesbury PLC Tuesday said it has signed a new GBP134.8 million 15-year loan with Canada Life Investments, cancelling its existing GBP100 million revolving credit facility with Bank of Scotland PLC, which was due to expire in two years.
The property investor said the new loan - secured on properties held in an unnamed subsidiary company - has a fixed interest rate throughout the term and is repayable in full at maturity in May 2029. It plans to use the the loan to repay existing debt drawn under other revolving credit facilities.
Part of the proceeds of the Canada Life loan will be applied to repaying drawings under the Bank of Scotland facility and meeting the cost of terminating GBP110 million of interest rate swaps it entered into with the British bank. The cost of terminating those swap arrangements amounted to GBP29.0 million, equivalent to 10 pence per share, Shaftesbury said.
Following the cancellation of the Bank of Scotland facility, the company's revolving credit facility with Lloyds Banking Group PLC, which matures in November 2018, will be increased to GBP150 million from GBP125 million.
In addition, a GBP30 million short-term credit facility entered into with Lloyds earlier this year has now been cancelled, it said.
Shaftesbury said on a pro-forma basis the weighted average maturity of the group's debt at March 30 has increased to 7.6 years from 5.6 years.
The stock was trading at 669.50 pence Tuesday, up 3.00 pence or 0.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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