Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF), the real estate investment trust providing inflation-linked, long income from grocery property in the UK, has announced the refinancing of its existing loan facilities with Bayerische Landesbank (BLB) with a new three-year £86.9mln term loan.
This secured, interest-only, loan replaces the three existing tranches with BLB for the same amount.
The new facility matures in March 2026 and is priced at a margin of 1.65% above the overnight bank rate, which was 3.93% as of 21 March.
The loan has been fully hedged for the term of the facility using an interest rate swap to a fixed rate of 4.29%, margin included.
The swap had an initial cost of £2.8mln, covered from the £3.3mln of proceeds received from the termination of the previous swap in place for the existing facilities.
100% of the company's drawn debt is fixed, with a weighted average cost of debt of 2.9%.
Ben Green, director of Atrato Capital Limited (LSE:CAPD), the investment adviser to Supermarket Income REIT, said: "We are pleased to continue our relationship with Bayerische Landesbank which has been a key debt funding partner to the company.
“Refinancing all of the existing facilities with BLB has allowed the company to extend the term to three years and achieve a competitive cost of finance."