HSBC and BNP take lead in Covent Garden refinancing

HSBC and BNP Paribas are leading a consortium of six banks in a £665m refinancing of Capital & Counties’ £1.15bn Covent Garden estate. RBS, Santander, Credit Agricole and Wells Fargo are also part of the club. The five-year, unsecured, revolving credit facility has a margin of 1.65%.

It replaces £480m of debt across three, secured facilities from HSBC and BNP Paribas, and Danish lender Nykredit. The new loan increases Capco’s liquidity by more than £150m, giving it greater flexibility to manage the famous estate.

A big focus will be to transform the north-western area through the Kings Court and Carriage Hall developments and to extend the residential portfolio. The group will incur a prepayment fee and fees relating to the new facility amounting to £12m. An £18m charge will be applied for the termination of derivatives linked to the debt.