British Land announces that it has signed a new £485 mln (€661 mln) unsecured Revolving Credit Facility (RCF) at an initial margin of 90 bps with a syndicate of 7 banks. The facility has a maturity of five years which may be extended to a maximum of seven years, on British Land's request and on each bank's approval for their participation. The terms of the facility include British Land's standard unsecured financial covenants.
This facility replaces the £560 mln (€763 mln) RCF which would have matured in May 2016 and is an extension and re-pricing of the £310 million (€422 mln) RCF which was due to expire in May 2018. This re-arrangement cancels c.£400 million (€545 mln) of facilities, reducing the overall quantum of our RCFs. The margin is below that on both previous facilities and holding costs are significantly reduced, lowering our overall financing costs.
The Royal Bank of Scotland plc acted as Documentation and Facility Agent. The Royal Bank of Scotland plc, Santander Global Banking & Markets, Bank of Tokyo-Mitsubishi UFJ and Barclays Bank were appointed Joint Co-ordinators and Bookrunners, and were Mandated Lead Arrangers. Commitments were also provided by Bank of China and Crédit Agricole Corporate and Investment Bank, also as Mandated Lead Arrangers, and by Handelsbanken as Lead Arranger.
Lucinda Bell, CFO, British Land said: "We actively manage our debt portfolio to ensure that our finance is competitively priced and appropriate for our strategy. This facility extends the term of our strong and well diversified portfolio, whilst the £400 mln (€545 mln) cancellation reduces cost and is consistent with our policy of maintaining flexibility and not gearing up on yield shift. We are very pleased with the level of bank support we have received on this transaction, reflected in a margin that is 25bps lower than the comparable facilities we agreed last year."
Source: British Land