NewRiver REIT PLC £430 million of unsecured debt facilities arranged (8376N)
14 August 2017 - 4:00PM
UK Regulatory
TIDMNRR
RNS Number : 8376N
NewRiver REIT PLC
14 August 2017
NewRiver REIT plc
("NewRiver" or the "Company")
GBP430 million of unsecured debt facilities arranged
NewRiver is pleased to announce that it has successfully
arranged GBP430 million of new unsecured debt facilities, to
replace the majority of its secured debt facilities. The
refinancing exercise will provide the Company with a reduced cost
of debt, increased flexibility and an increased debt maturity. The
new facilities were arranged with minimal breakage costs using a
syndicate of banks with whom NewRiver has enjoyed long standing
relationships.
The new facilities include a GBP165 million term loan and a
GBP215 million revolving credit facility ("RCF"), with an initial
maturity of five years which can be extended to a maximum of seven
years, subject to lender consent. The remaining GBP50 million is a
term loan with a maturity of 18 months, providing the Company with
the ability to further diversify sources of unsecured debt funding
in due course.
The margin payable on all of the new unsecured facilities is 185
basis points. As part of the facilities agreement, the Company is
required to put in place interest rate hedging in respect of a
minimum of 75% of aggregate drawn debt under the term facility, for
which it will utilise existing hedging arrangements making this a
very cost effective transaction.
The GBP430 million of new unsecured facilities replace GBP414
million of existing secured facilities. The Company has already
drawn both of the term loans, and the remaining GBP215 million RCF
will be utilised in the future, providing additional funding
capacity as required. Assuming that the RCF is fully drawn, the
Company's proforma all in cost of debt will reduce to below 3%,
from 3.5% as at 31 March 2017 and debt maturity will increase to
5.8 years (March 2017: 2.5 years) with options to increase this in
the future through further unsecured funding.
The syndicate for the new facilities consists of Barclays Bank
plc, HSBC Bank plc, The Royal Bank of Scotland plc and Santander UK
plc. HSBC Bank plc will act as agent for the facilities. NewRiver
was advised on the refinancing by Rothschild & Co.
Mark Davies, Chief Financial Officer commented: "This unsecured
refinancing marks a significant milestone for the Company, and
further demonstrates the benefits of our conservative financial
policies, low financial gearing and increased scale.
We remain focused on delivering growing and sustainable cash
returns to our shareholders, and this refinancing further enhances
our already efficient operating platform. Importantly, we have been
able to achieve all of this with minimal breakage costs and by
utilising the strong banking relationships we have established over
many years."
For further information
NewRiver REIT plc +44 (0)20 3328 5800
Mark Davies (Chief Financial Officer)
Allan Lockhart (Property Director)
Will Hobman (Head of Investor Relations)
Bell Pottinger
+44 (0)20 3772 2500
David Rydell
Eve Kirmatzis
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
About NewRiver
NewRiver REIT plc (ticker: NRR) is a premium listed REIT on the
London Stock Exchange and a constituent of the FTSE 250 and EPRA
indices. The Company is a specialist real estate investor, asset
manager and developer focused solely on the UK retail and leisure
sector.
Founded in 2009, NewRiver is one of the UK's largest
owner/managers of convenience-led shopping centres with assets
under management of GBP1.3 billion principally comprising 33 UK
wide shopping centres together with further nationwide retail and
leisure assets. The portfolio totals 8 million sq. ft. with over
2,000 occupiers, an annual footfall of 150 million and a retail
occupancy rate of 97 per cent. Visit www.nrr.co.uk for further
information.
LEI number: 2138004GX1VAUMH66L31
This information is provided by RNS
The company news service from the London Stock Exchange
END
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