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Tritax Big Box issues £400m loan notes

Tritax Big Box issues £400m loan notes – Tritax Big Box REIT has signed an agreement with a number of new institutional investors for a private placement of £400 million new senior unsecured loan notes. The loan notes comprise two tranches with a weighted average coupon of the fixed rate notes equating to 2.91 per cent. and a weighted average maturity of 9.8 years.

The notes were priced on 15 November 2018 and the loan note purchase agreement was signed on 4 December 2018. The funds will be drawn on 28 February 2019.

The two tranches comprise:

  • £250 million at a fixed coupon of 2.86 per cent. maturing in February 2028; and
  • £150 million at a fixed coupon of 2.98 per cent. maturing in February 2030.

The proceeds will be used to refinance existing commitments under the £250 million short term, unsecured banking facility announced in October 2018 and provide the company with additional committed capital to assist in the acquisition of further potential investment opportunities.

Santander Investment Securities Inc., and NatWest Markets Plc acted as joint placement agents and Barclays Bank PLC and BNP Paribas Securities Corp. acted as passive agents. The company was advised on the financing by Lazard & Co., Limited.

Frankie Whitehead, head of finance for Tritax Big Box REIT, commented: “We are pleased with the support that this issue received from new institutional debt investors as part of our debut unsecured US private placement. The new financing is at an attractive fixed cost of debt, further diversifies our funding by providing access to a new source of liquidity and extends the weighted average debt maturity of the company.”

BBOX : Tritax Big Box issues £400m loan notes

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