Supermarket Income REIT completes £170m refinancing
Supermarket Income REIT, the real estate investment trust providing long income from grocery property, has announced the completion of a £170m refinancing through its first private placement debt issuance and a new unsecured bank facility.
The REIT has completed an agreement with a group of institutional investors for a private placement of €83m (£70m) of new senior unsecured notes. The notes have a maturity of seven years and a fixed rate coupon of 4.44%.
The group said the proceeds will be used to refinance euro drawings under an existing secured revolving credit facility with HSBC, which had been used to fund a recent acquisition of a portfolio of 17 stores from Carrefour.
Supermarket Income REIT has also refinanced its existing £97m secured debt facility with Deka through a new £100m unsecured debt facility with ING.
The facility comprises a £75m term loan and a £25m revolving credit facility. The interest-only facility has a maturity of three years and has two one-year extension options at the lender’s discretion.
Ben Green, director of Atrato Capital, the investment adviser to Supermarket Income REIT, said: “We are very pleased at the support we have received from new institutional investors both for the company’s new unsecured private placement and for the refinancing of the secured facility.
“The quality of our portfolio continues to appeal to new lenders and allows the company to access debt financing on favourable terms.”