Intu agrees £600m credit facility
Trafford centre owner Intu Properties has signed a £600m revolving credit facility, to replace the existing £375m facility due to expire in November 2018.
The RCF has been provided by seven banks including all the providers of the current facility; Bank of America Merrill Lynch, Credit Suisse, HSBC, Lloyds Banking Group and UBS with Barclays and the Royal Bank of Scotland now joining.
The new facility has a minimum term of five years out to October 2019 with the ability to extend this by a further two years subject to certain conditions being met and approvals received.
The new facility will be used to provide general liquidity for Intu.
In May, the market value of Intu's shopping centre portfolio was valued at £8.5bn.
Matthew Roberts, chief financial officer of Intu, said: "I am very pleased with this successful refinancing, which increases both the size and tenure of committed facilities for Intu. Despite the increase in the size of the facility we have been able to reduce margins and fees such that expected on-going costs will be lower than under the previous facility. Intu takes relationship banking very seriously and therefore I am also very pleased that we have been able to maintain, and indeed enlarge, our core relationship banks within this, our principal corporate facility."
Intu shares were up 6.8p this morning to 342.1p.