NSI N.V. has refinanced its unsecured syndicated loan facility with ABN Amro, Belfius, Deutsche Bank, ING and Rabobank. In the new agreement, margins are lower and the facility’s maturities are set for a new 5-year term.
NSI’s average debt maturity increases to 5.5 years up from 3.1 years at the end of December 2017. A reduction in the margin, reflecting an implied investment grade credit rating, results in a cost of debt of 1.9%, from 2.3% previously.
The Term Loan is reduced to €180m and the Revolving Credit Facilities are merged and increased to €300m, to provide more flexibility in the current asset rotation program. Both the Term Loan and the RCF now expire in April 2023. The Revolving Credit Facility includes an option to increase the maturity twice by one year, to ultimately April 2025.
In line with NSI’s hedging policy new swap contracts will be agreed to match with the underlying funding.
This transaction contributes to NSI’s strategy to extend its debt maturities, whilst lowering the total cost of funding. With the first loans now maturing in April 2023, an LTV at the end of March of 37.2% and 84% of the interest costs fixed or hedged, NSI has a solid balance sheet to support its strategy and planned development pipeline in the years to come.
NSI was advised by Axeco Corporate Finance and NautaDutilh. Rabobank acted as documentation agent.
