NewRiver REIT has arranged £430 million of new unsecured debt facilities to replace £414 million of its secured debt facilities.
Specifically, the trust secured a £165 million term loan and a £215 million revolving credit facility that have five-year terms, with an option to extend to seven years, subject to approval by the lender. It also obtained an 18-month £50 million term loan. The margin payable on all the new unsecured facilities is 185 basis points.
Both term loans have already been drawn, with the revolver to be used in the future, according to a release.
NewRiver said the refinancing will provide it with a lower cost of debt and increase its flexibility and debt maturity. It added that the facilities were arranged with minimal breakage costs.
The facilities were arranged by a syndicate of banks comprising Barclays Bank plc, HSBC Bank plc, The Royal Bank of Scotland plc and Santander UK plc, with HSBC acting as the agent for the facilities. Rothschild & Co. served as NewRiver's refinancing adviser.