Tritax Big Box REIT plc has arranged a new £400 million unsecured revolving credit facility (the “New RCF”) to refinance its existing £300 million facility and underpin its investment and development ambitions. The New RCF, provided by a mix of existing and new banking partners, maintains the same margin structure and extends the Company’s average debt maturity, supporting the delivery of its strategic objectives.
· New £400 million RCF refinances existing £300 million facility
· Maintains same margin and provides five-year term, plus two-year extension option
· Additional £150 million refinancing of bilateral bank facilities
Tritax Big Box REIT plc (LON:BBOX) has announced it has entered into a new £400 million unsecured revolving credit facility with a syndicate of its existing relationship banks and new lenders.
The New RCF is available for general corporate purposes and is being used to refinance the Company’s existing £300 million revolving credit facility due to mature in June 2026 (the “Existing RCF”), as well as to support the Company’s investment and development activities.
With an initial five-year term that may be extended to a maximum of seven years subject to lender consent, the New RCF also contains an uncommitted £200 million accordion option. It has the same margin ratchet as the Existing RCF, with an opening margin of 110bps, but with a margin reduction should the Company benefit from a potential future credit rating upgrade to A3 or higher by Moody’s (or equivalent from S&P or Fitch).
The syndicate for the New RCF comprises ABN AMRO, Bank of America, Bank of China, London Branch, Barclays, BBVA, BNP Paribas, CaixaBank S.A. (UK Branch), JPMorgan Chase, Santander, SMBC BI, and The Royal Bank of Scotland International.
Alongside the New RCF, the Company is pleased to announce the refinancing of its existing £150m bilateral Barclays facilities with Barclays with a new bilateral term loan, again with Barclays (the “Term Loan”). The Term Loan has a maturity of October 2027 and may be extended by up to a further three years subject to lender consent. The Term Loan aligns with the Company’s continued sustainability efforts and ESG strategy as it incorporates a sustainability-linked margin adjustment. It also benefits from the same margin reduction mechanism as the New RCF if the company benefits from a potential future credit rating upgrade.
Barclays Bank PLC acted as Agent and Documentation Coordinator for the New RCF.
The Company was advised on the transaction by Lazard & Co., Limited.
Frankie Whitehead, Partner and CFO for Tritax Big Box REIT plc, commented:
“The new £400m RCF will increase available liquidity and supports our ongoing ability to execute our strategy, including our attractive logistics and data centre development opportunities whilst maintaining an average cost of debt in line with the level we reported at FY24. We are grateful for the continued support of our banking syndicate and the addition of three new lenders validates the quality of our investment portfolio and growth potential. Our strong balance sheet provides us with financial flexibility while our debt maturity profile remains well diversified by both source and by maturity.”
