Manchester-based Bruntwood has announced a £221m, five-year financing facility with a syndicate of four banks. Barclays, HSBC, Royal Bank of Scotland and Santander UK have each provided £55.25m.
“It was great to bring Santander into the facility as well as our existing banks,” said Kevin Crotty, Bruntwood’s chief financial officer.
“Given the liquidity in the market, we felt it was good to bring a new bank in to create headroom for new acquisitions.”
The facility, which completes Bruntwood’s refinancing of all its debt, carries a 300bps margin at 60% loan-to-value ratio. “We’re happy with that,” said Crotty. The company had £435m of CMBS and £165m of bank debt.
“In December we raised £120m from Legal & General, only its second ever 10-year property loan. In February our bondholders unanimously approved the extension of £229m of our CMBS to 2016,” Crotty said.
“In July we issued a seven- year, £50m retail bond, the first private property company to
do so. We have completed an amazing 12 months with a five- year £221m syndicated facility.”
The deal was co-ordinated by Barclays. Pinsent Mason was the banks’ legal adviser. Addleshaw Goddard advised Bruntwood.
HSBC acted as sole hedge co-ordinator and execution bank for the restructuring of the underlying swaps, which were later syndicated among the four lending banks.