UK REIT British Land has closed a five-year, unsecured credit facility with a consortium of lenders including JP Morgan and Lloyds Banking Group.
UK REIT British Land has closed a five-year, unsecured credit facility with a consortium of lenders including JP Morgan and Lloyds Banking Group.
The new facility closed at £310 mln (€365 mln) following the addition of a further bank. The facility was increased from £200 mln (€236 mln) at launch after it was over-subscribed.
The facility has an initial margin of 135 basis points per annum and its terms include unsecured financial covenants.
Lloyds Banking Group serves as co-ordinator of the deal and is one of three book runners for the issue. The others are Royal Bank of Scotland and Bank of Tokyo-Mitsubishi.
Further commitments were provided by three banks representing new lending relationships for the firm - JP Morgan, Scotiabank and Mega International Commercial Bank. Bank of China and Santander also provided commitments.
British Land finance director Lucinda Bell believes the deal provides a good basis for growth. ‘Our ability to continue to access diverse sources of low-cost debt finance is a key competitive strength. It provides us with the resources and flexibility to pursue our objectives and grow the business,’ she said.
