Wells Fargo has provided a £50 million term loan to listed UK logistics investor Tritax Big Box REIT.
The secured loan tops up an existing £500 million secured debt facility which was provided to Tritax by a syndicate of four banks in October 2015. Wells Fargo, which is the sole lender of the new loan, is one of the four banks which wrote the original facility. The other syndicate members were Barclays, Helaba and ING Real Estate Finance.
The additional term loan has been provided on the same terms as the original facility and will mature in October 2020. Tritax has a 12 month extension option available on the enlarged loan, which it can exercise until October 2017.
The original facility comprised a £320 million term loan, an £80 million term loan available to draw up during the first year of the facility and a £100 million revolving credit facility. It had an opening margin of 1.4 percent above three-month LIBOR. The loan refinanced £253.34 million of the group’s existing debt provided by Barclays and Santander.
Tritax said that it has a current weighted average all-in cost of borrowing of 1.89 percent and a weighted average capped cost of borrowing of 2.82 percent. The group’s current loan to value ratio is approximately 31 percent with a medium term target of 40 percent.
“We are pleased to have secured this further debt with Wells Fargo on the same attractive terms as agreed a year ago. We have secured a robust pipeline of investment opportunities on behalf of the company and look forward to announcing further acquisitions in the near term,” said Colin Godfrey, partner at Tritax.