Supermarket Income Reit Plc (LON:SUPR) has announced the completion of a £445 million refinancing, delivering lower borrowing costs and increasing average debt maturity.
The new facilities – a £375 million syndicate and £70 million bilateral – will refinance all of SUPR’s existing unsecured loan facilities maturing over the next two years, and comprise:
£225 million syndicated three-year RCF;
- £45 million bilateral three-year RCF;
- £150 million syndicated five-year RCF;
- £25 million bilateral five-year RCF; and
- Each facility benefiting from two one-year extension options.
As part of the refinancing, the Company has added two new banking relationships with Lloyds Bank plc and ABN AMRO Bank N.V, while retaining its core banking relationships within existing facilities with Barclays Bank PLC, HSBC UK Bank plc, ING Bank N.V., and The Royal Bank of Scotland International Limited. This further demonstrates the strong appeal of high-quality grocery assets to lenders, and SUPR’s continued ability to access liquidity on attractive terms.
The average margin across the facilities is 1.18% above SONIA (drawn basis), representing an annual interest cost saving of c.£0.3 million. The new facilities will be used to repay the existing Barclays, ING and syndicated RCFs, increasing the Company’s weighted average debt maturity from 2.9 years to 3.8 years. Following the refinancing, the Company has no debt maturing until June 2028.
The Company’s Weighted Average Cost of Debt is 4.4% and is 98% fixed or hedged until June 2028.
Mike Perkins, CFO of Supermarket Income REIT, commented:
“The strong support from our existing lenders and new partners in Lloyds and ABN AMRO reflects the ongoing appeal of grocery assets within the lending community. We continue to access bank finance at attractive rates, underlining the quality of our portfolio, the confidence in our strategy, and the strength of our relationships. The improvement in our debt maturity profile further enhances our capital structure which remains well diversified by maturity and source.”
