Supermarket Income REIT has completed £90 millions worth of refinancing through a new unsecured debt facility with Barclays.
The facility will be used to refinance the Company’s existing secured debt facilities with Wells Fargo and Bayerische Landesbank of £30 million and £55.4 million respectively, which are due to mature in a year’s time and to be cancelled in full.
The interest-only facility has a maturity of three years, with two one-year extension options at the lender’s discretion and priced at a margin of 1.55% above SONIA. The Company intends to use the value of the existing interest rate hedges on the refinanced Wells Fargo and Bayerische Landesbank facilities to cap the interest rate on the facility at 5% for the three-year term, at no additional cost to the REIT.
Following the debt refinancing and completion of the recently announced joint venture with Blue Owl Capital, Supermarket Income REIT anticipates a pro-forma loan-to-value (LTV) of c.31%.
