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McKay Securities completes £175m debt refinancing

McKay Securities, the only Real Estate Investment Trust specialising entirely in the South East and London office and industrial markets, has announced the completion of a comprehensive refinancing of its loan facilities.

The refinancing has increased the scale of the group’s loan portfolio from £155m to £175m, with Aviva Commercial Finance Ltd introduced as a new lender and relationships maintained with three of the group’s four lending banks.

It provides an extended maturity profile and secures the Group’s borrowings ahead of loan expiries due to commence in 2016.

Aviva has provided a £55m facility with a fifteen year term, fixed at 4.13%. This replaces a bank facility of £47m due to expire in February 2016. Facilities with other existing lending banks have been increased by £12m to £120m, of which new facilities account for £85m on five year terms.

McKay’s overall cost of debt will be reduced from 6.60% (30th September 2014) to 4.62% on day one, reducing to 3.80% when fully drawn at the prevailing rates.

Giles Salmon, finance director, said: “On the back of £75m of investment deals over the last 16 months, and as we continue to build out our £50m development programme, we are delighted to secure this financing package. It gives a secure platform for our continued growth on what we believe to be attractive terms.

“We are delighted to welcome Aviva as a new lender and look forward to building our relationship with them and enhancing the relationship with our retained lending banks.’’

PWC acted as Debt Advisor to McKay Securities PLC.

This was posted in Bdaily's Members' News section by Ellen Forster .

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