Supermarket Income REIT has refinanced its existing loan facilities with Bayerische Landesbank (BLB) with a new three year £86.9 million term loan.
This secured, interest-only, loan replaces the three existing tranches with BLB totalling £86.9 million. The new facility matures in March 2026 and is priced at a margin of 1.65% above SONIA which has been fully hedged for the term of the facility using an interest rate swap to a fixed rate of 4.29% (including margin).
The cost of the hedging instrument for the new facility was £2.8 million. This was more than fully covered from the £3.3 million of proceeds received from the termination of the previous hedging instrument in place for the existing facilities.
100% of the Company’s drawn debt is fixed, with a weighted average cost of debt of 2.9%.
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc, said: “We are pleased to continue our relationship with Bayerische Landesbank which has been a key debt funding partner to the Company. Refinancing all of the existing facilities with BLB has allowed the Company to extend the term to three years and achieve a competitive cost of finance.”
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