LondonMetric completes on GBP780m of debt refinancings

LondonMetric Property has completed a previously-announced GBP380 million private debt placement which has a blended maturity of 11.1 years and a blended coupon of 2.27 per cent.

Simultaneously with the completion of the Placement, the Company also announces the completion of two new revolving credit facilities (RCFs) totalling GBP400 million. They comprise a GBP175 million facility for a five year term with two plus one year options with Wells Fargo, and a GBP225 million facility for a three year term with two plus one year options with NatWest, Barclays, HSBC and Santander.
Taken together with the Placement, the Company has completed GBP780 million of new debt, replacing the existing GBP444 million RCF due to mature in April 2022 and two bilateral loans with Wells Fargo of GBP75 million and HSBC of GBP75 million. The Company will also repay its GBP130 million secured debt facility with Helaba.  Overall, the refinancings increase the Company’s loan maturity by 4 years to 8.2 years and the average cost of debt on a drawn basis will be 2.6 per cent (31 March 2020: 2.9 per cent).
As disclosed previously, a GBP50 million tranche of the Placement (Green Notes) is subject to a green framework under which spend is allocated to highly sustainable buildings. The Green Notes are priced two basis points inside the equivalent non green notes.
The RCFs also have a green framework structured in accordance with the Loan Market Association’s sustainability linked loan principles. Sustainability performance targets (Targets) have been set which are aligned to LondonMetric’s Responsible Business targets. The Targets focus on EPC ratings, renewable installations and developments meeting a minimum BREEAM Very Good standard.  The pricing of the RCFs is subject to a two basis point adjustment for compliance/non-compliance with the Targets.
Martin McGann, Finance Director of LondonMetric, says: “We have undertaken very significant refinancings of our debt position and are delighted with the support shown by our RCF lenders and the increased diversification of our private placement investors in North America and the UK. These refinancings lengthen our debt maturity and reduce our overall cost of borrowing.”