Unite Group Secures New Debt Facility

Posted by Richard Ward in

Image courtesy of Flickr

Unite Group has secured an investment grade credit rating and arranged a new five-year unsecured debt facility, which will help to reduce financing costs and provide a greater level of flexibility and diversity when sourcing funds to support growth.

The new £500 million unsecured debt facility provides additional headroom for the development pipeline and greater flexibility.

The new facilities will increase the debt maturity by 12 months and reduce the average cost of debt, when fully drawn from 4.2% to 3.9%.

The Group also announced it has been awarded an investment grade corporate rating of BBB from Standard & Poor's and Baa2 from Moody's.

The new loan facility comprises of a five-year £350 million revolving credit facility and a one year £150 million bridge loan, replacing a £280 million secured debt facility.

The Group also intends to replace the bridge loan in the first six months of 2018, with longer term unsecured debt to help extend the Group's maturity profile and diversify its sources of finance.

The syndicate for the new facilities consist of HSBC Bank plc and The Royal Bank of Scotland plc.


Support