The British Land Company PLC has completed the £753 million refinancing of its securitised superstore portfolio. As a result of the transaction, BL Superstores Finance PLC has issued £753 million of bonds at an average interest rate of 4.96%. The weighted average life of the new bonds is 13.4 years.
After recent significant property disposals and the repayment of bank facilities British Land has closed out derivatives in order to maintain, in line with its interest rate policy, an appropriate balance of fixed and floating rate debt.
These actions result in British Lands interest charge reducing by 11 million per annum. The Company will incur an exceptional accounting charge against pre-tax profits in the final quarter of its financial year ending 31 March 2006 of some 122 million. The weighted average cost of debt is reduced from 5.92% to 5.67% on a proforma basis as of 31 December 2005 with weighted average debt maturity unchanged at 13.7 years. Adjusted NAV is reduced by 16 pence per share, NNNAV by 2 pence per share.
Source: British Land