QuotedData’s morning briefing 3 April 2024 – BOOK, SUPR, SERE

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QuotedData’s morning briefing 4 April 2024:

  • Literacy Capital (BOOK) announced the completed refinancing of one of its largest portfolio companies with new lenders. This resulted in new debt facilities allowing the company to return cash to shareholders, including Literacy, with the fund’s share amounting to £20m.
  • Supermarket Income REIT (SUPR) has increased its unsecured debt facility with Sumitomo Mitsui Banking Corporation by £37.5m to £104.5m. The interest-only facility matures in September 2026 and is priced at a margin of 1.55% above SONIA on the increase amount, with the existing £67m remaining at a margin of 1.40% above SONIA, and is fully hedged for the term of the facility. The company now has a pro-forma LTV of 34% (including the acquisition of a Tesco store announced on 22 March 2024).
  • Schroder European REIT (SERE) has completed the refinancing of a €8.6m loan with existing lender Saar LB, secured against its Rennes logistics investment. The new five-year facility is based on a margin of 1.6%, a slight increase from the existing 1.4% margin and is due to expire on 26 March 2029. The total interest cost has been fixed at 4.3% being the five-year euro swap rate of 2.7%, plus the 1.6% margin. With this new facility, the company’s third-party debt totals €82.5m across seven loan facilities. This represents an LTV of 33% against the company’s gross asset value (24% net of cash). All facilities are on a non-recourse lending basis. Following draw down, the portfolio’s weighted average loan term increases by six months from 2.7 years as of 1 April 2024 to 3.2 years. The company’s blended all-in interest rate increases marginally from 2.8% to 3.0%. The company’s next re-financing is in June 2026, secured against its Berlin DIY and Frankfurt grocery investments.

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