ING Bank, BNP Paribas and RBS lead €400-mln. revolving credit facility for GELF
Wednesday 21 December 2011
ING Bank, BNP Paribas and Royal Bank of Scotland have acted as Joint Mandated Lead Arrangers for a €400-million revolving credit facility for Goodman European Logistics Fund (GELF) as part of a broader strategy to increase the Fund size and scope.
In addition ING Bank has provided a €100-million bilateral loan as part of a broader refinancing of GELFs bank facilities.
GELF is managed by the Goodman Group and is continental Europe’s largest unlisted logistics fund with €1.6 billion of prime logistics assets. Goodman recently announced a €400 million rights issue for the Fund. In addition, GELF has also just put in place €400 million of bilateral secured debt facilities.
The combined capital raising allows the progression of GELF’s development and investment program, giving the Fund capacity to increase gross assets to €2 billion.
The revolving Facility will be up to a four-year term and will support the acquisition, development and on-going ownership of prime logistic property across the 11 European countries in which GELF is present.
Furthermore the Facility is structured to be a platform for the medium term financing of the Fund with GELF intending to secure an investment grade rating and then look to issue debt in the capital markets that allows for diversification of its long term funding sources.
The €100-million bilateral loan with ING Bank also has a four-year term and is secured against a number of GELFs Dutch assets.
Nick Vrondas, Goodman Group CFO, said: “We are pleased to have now implemented a comprehensive capital raising program for GELF and this Facility will allow the Fund significant flexibility to implement its growth strategy whilst permitting a controlled transition to a corporate style borrower.”
ING Bank will act as Facility Agent and BNP Paribas has been appointed as ratings adviser to GELF.