Overview
Shaftesbury has announced that it has secured a new £130m term loan with Aviva Commercial Finance Limited for 15 years until March 2030.The loan is secured on certain properties held in a subsidiary company and has a fixed interest rate of 3.2% throughout the term.
On drawing down the loan from Aviva, Shaftesbury is to cancel a £100m revolving credit facility it has in place with the Nationwide Building Society, which was due to expire in September 2016. Shaftesbury also has another £50m credit facility with Nationwide, which will be refinanced in due course. Shaftesbury will also be terminating £70m of interest rate swaps at a cost of £28.1m, which reduces its EPRA net asset value per share by around 10p, equivalent to 1.4% of EPRA NAV at 30 September 2014 (£7.13).
In summary, Shaftesbury say these transactions will increase the weighted average maturity of the Group’s debt from 6.7 years to 8.7 years and reduce its weighted average cost by around 0.25%.
SHB : Shaftesbury secures new financing arrangements