Supermarket Income REIT lands £445m refinancing at cheaper rates
What's the deal? Supermarket Income REITDealroom has a profile for this one. Try Dealroom → has secured £445m in debt refinancing to cut borrowing costs and extend debt maturity.
The package splits into a £375m syndicate and a £70m bilateral facility, each carrying two one-year extension options.
It comprises a £225m three-year syndicated revolving credit facility, a £45m three-year bilateral facility, a £150m five-year syndicated facility, and a £25m five-year bilateral facility.
Why now? The new facilities replace all of the trust's existing unsecured loans maturing through 2028.
The move lifts the group's weighted average debt maturity from 2.9 years to 3.8 years.
At an average margin of 1.18% above the Sterling Overnight Index Average, the deal cuts annual interest costs by roughly £0.3m.
Supermarket Income REIT added Lloyds BankDealroom has a profile for this one. Try Dealroom → and ABN AMRODealroom has a profile for this one. Try Dealroom → as new lenders, while keeping BarclaysDealroom has a profile for this one. Try Dealroom →, HSBC UKDealroom has a profile for this one. Try Dealroom →, INGDealroom has a profile for this one. Try Dealroom →, and The Royal Bank of ScotlandDealroom has a profile for this one. Try Dealroom → on board.
The signal: By bringing corporate lenders Lloyds Bank and ABN AMRO alongside existing backers Barclays, HSBC UK, and ING, Supermarket Income REIT is broadening its pool of institutional financing partners at a moment when grocery-backed property remains one of the few real estate segments attracting steady bank appetite. Diversifying by both maturity and source signals a defensive play to lock in cheaper, longer-dated debt while lender confidence in supermarket assets holds firm.
Read more: Completely Retail
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