BBGI Global Infrastructure secures £230m revolving credit facility – BBGI Global Infrastructure has secured a new committed multi-currency revolving credit facility of £230m from ING Bank, DZ Bank, KfW IPEX-Bank and SMBC Bank. This will replace the current £180m facility with ING, DZ, and KfW which commenced in January 2018 and matures in January 2022.
The tenor of the new RCF will be five years, starting from May 2021, and the borrowing margin is 165 bps over the relevant reference rate. Under the new RCF, the trust will have increased flexibility to consider larger transactions now having structured a further uncommitted £70m incremental accordion tranche, for which no commitment fees will be paid.
The multi-currency RCF will be used primarily to fund acquisitions and provide letters of credit for investment obligations, and the intention will be to repay the facility from time to time through equity fundraisings.
Statement from Co-CEO’s of BBGI:
“The new Revolving Credit Facility helps to ensure BBGI has the ability to complete large portfolio transactions or acquisitions from multiple vendors in short order as and when they become available. We continue to be excited about the growth opportunities available to BBGI over the coming years and this new RCF will support the continued development of the business.
We are pleased to increase the tenor of the new RCF from four years to five years and expand the lending group, underlining the strength of support for the Company and our future growth strategy as well as the robust fundamentals of our focus on low-risk availability-based infrastructure investments.
We have also contributed to lower costs by virtue of having structured an additional £70 million incremental accordion tranche for which no commitment fees are payable. Both the multi-currency facility and the accordion facility allow BBGI to borrow in the currency of the underlying assets or in sterling.”
BBGI : BBGI Global Infrastructure secures £230m revolving credit facility