LondonMetric Property has refinanced £1.5bn of unsecured term loans and revolving credit facilities (RCFs), to replace nearly all of its unsecured facilities set to mature over the next four years.
The cash comprises two new facilities, £1.3bn syndicated and £200m bilateral. Barclays Bank and NatWest acted as joint co-ordinators and bookrunners on the £1.3bn syndicated facility.
The £1.5bn of new debt comprises a £297.5m, two-year term loan; a £297.5m, three-year term loan; a £235m, four-year term RCF; and a £670m, five-year term RCF.
The refinancing increases LondonMetric’s average debt maturity from to 4.2 years at the end of September to 4.4 year. Following the refinancing, only £186m of debt will be set to expire over the next two years.
Martin McGann, chief financial officer of LondonMetric, said: “This refinancing significantly enhances our capital structure, reduces our cost of debt and further strengthens our diverse lender relationships.
“The structure supports our wider funding strategy as we look ahead to further potential debt capital markets issuance, continued disciplined growth and managing our finance costs to ensure they don’t increase materially over the next few years.”
Last month, LondonMetric expressed interest in acquiring Picton Property Income, which is undergoing a strategic review that includes the option for a formal sale process.
Picton’s portfolio is valued at £699.1m and includes industrial, office, retail and leisure assets, while LondonMetric has a £7bn portfolio including logistics, entertainment and leisure, convenience and healthcare assets.
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