Intu has agreed terms to amend and extend one its loans, conditional on it raising £1.3bn of equity.
The revised four-year £440m revolving credit facility will replace intu’s existing £600m facility that is due to expire in October 2021.
The revised facility will be provided by all seven of the existing banks who participate in intu’s current RCF, being Bank of America, Barclays, Credit Suisse, HSBC, Lloyds, Natwest and UBS.
The company is working with its corporate brokers, Bank of America Securities and UBS, and its financial adviser, Rothschild & Co, on the planned equity raise and intends to update the market next Thursday when it publishes its annual results.
Intu is laden with debt and with the value of its shopping centres continuing to plummet due to retailer failings, it is in desperate need of raising equity.
Intu had been in discussions with one of the world’s largest REITs, Hong Kong’s Link REIT, to become a cornerstone investor in the fundraise. However, Link REIT pulled out of talks earlier this month, putting into doubt whether Intu could raise the required emergency cash.
Intu chief executive Matthew Roberts said: “This extension of our revolving credit facility is a key milestone in addressing our near-term refinancing needs. It also underlines the continued support we have from our relationship banks.
“Fixing the balance sheet remains our number one priority and we remain engaged with shareholders and potential new investors in relation to the intended equity raise.”
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INTU Intu agrees refinancing conditional on a £1.3bn equity raise