Grainger, the UK listed residential property group, has secured a new 拢580 mln (鈧�824 mln) syndicated bank facility.
Grainger, the UK listed residential property group, has secured a new 拢580 mln (鈧�824 mln) syndicated bank facility.
The planned refinancing reduces Grainger's costs and extends its debt maturities, the company said on Friday.
The facility, which will represent 44% of the group's total 拢1.3 bn in loans, matures in August 2020. The previous maturity ran to July next year. The margin on the facility has been reduced by 50 basis points to 170 bps. The facility structure enables further pricing benefits to be gained at future lower levels of loan to value. Covenants remain unchanged.
The group average cost of debt will be reduced to c.4.6% (5.1% as at 31 March 2015). Average maturity of group debt is now 5.8 years rather than 4.4 years as at end-March 2015.
Mark Greenwood, Grainger's finance director, commented: 'We have been making considerable progress in diversifying our sources of funding and reducing the cost of our debt facilities, which this refinancing further supports. We will continue to review all other sources to ensure that we have the most competitive cost of debt to pursue our strategy of accelerating our push into the private rented sector.'
