MEPC has continued to make in-roads into its £470m of securitised debt that was arranged by Eurohypo and matures in July 2012. The property company, which is owned by the BT and Royal Mail pension funds, this week prepaid £74.5m of the loan securitised via the Opera Finance (MEPC) CMBS.
This follows a £102.5m first- stage prepayment in January. This means the outstanding loan reduces to £293m and the interest cover increases. Two of the assets in the original securitisation, Birchwood Park in Warrington and Hillington Park in Glasgow, have been released from the securitisation and two remain: Chineham Park in Basingstoke and Milton Park in Oxfordshire.
MEPC used £20.9m of cash from disposals and equity for the latest prepayment and took out a second Eurohypo loan for the £53.6m balance. Eurohypo also supplied the debt for the January prepayment. The property company has cut its gearing but the margin on the new loan will be higher. JC Rathbone Associates advised MEPC.