SEGRO renegotiates €780m of unsecured debt

Listed industrial property specialist SEGRO has renegotiated a total of €780 million of unsecured bank facilities with nine existing lenders and new lender Wells Fargo.

The firm has agreed to an amended syndicated revolving credit facility (RCF) of €610 million, as well as two bilateral RCFs of €100 million and €70 million. The net effect of the amended bank facilities is a €110 million increase in unsecured debt available to SEGRO and an increase in average weighted maturity from 25 months to 57 months.

The margin payable under all three amended facilities is 95 basis points, 27 bps lower than the firm’s average margin payable prior to the refinancing.

The facilities were provided by Barclays Bank, Bank of China, BNP Paribas, Bank of America Merrill Lynch, HSBC Bank, Lloyds Bank, KBC Bank, Royal Bank of Scotland (RBS), Santander and Wells Fargo.

The new facilities comprise:

• An RCF which was amended and extended to increase the size to €610 million from €225 million. The margin was reduced and the maturity extended to May 2021. The maturity can be extended to a maximum of seven years.
• A €70 million RCF which has been amended and extended to reduce the margin and commitment fee and extend the maturity to Mat 2020.
• A €100 million RCF which has been amended to reduce the size of the facility from €140 million, reduce the margin and extend the maturity to July 2019.

As part of the refinancing, SEGRO also cancelled a €235 million bank facility which was due to mature in May 2018.

“This refinancing makes our committed bank facilities more cost effective, and smooths and extends our debt maturity profile,” said Justin Read, SEGRO’s Group Finance Director.

“The restructured facilities also provide an appropriate level of funding to support the ongoing delivery of our development strategy, whilst ensuring that SEGRO continues to maintain a strong liquidity position,” Read added.

SEGRO arranged the financing itself. RBS acted as documentation coordinator and HSBC was appointed agent for the €610 million facility.