Tritax Big Box REIT has announced that it has agreed a £500m secured debt facility, with a syndicate of four lenders, for five years. The facility comprises a £320m term loan which the company says will be drawn in full immediately, a further £80m term loan available to draw up until the first anniversary of the facility, and a £100m revolving credit facility which includes a £10m overdraft component. The Facility has an opening interest margin of 1.40% above three-month LIBOR, which, when fully drawn, will reduce the company’s average interest from 1.77% to 1.42%. The new facility will be used to refinance an existing facility, currently provided by Barclays Bank and Santander UK for £253m. However, the company’s loans with Landesbank Hessen-Thüringen Girozentrale will remain outside the facility and are unaffected.
The drawing of the initial term loan will increase the portfolio’s loan to value ratio to approximately 35%. When taking into account the funding requirements of the company’s existing commitments, it will be looking to increase the LTV towards the targeted level of 40% in the near term. The facility extends the Group’s average unexpired loan term to five years. Subject to lender support, the facility has two, twelve month, extension options, which can be exercised after year one and year two respectively. The facility can also be increased to £700 million, again subject to lender support.
Tritax Big Box REIT Secures new £500m debt facility : BBOX