Trafford Centre exterior

CSC borrows £375m for working capital

Trafford Centre owner Capital Shopping Centres has agreed a £375m credit facility with HSBC, Lloyds Banking Group, Bank of America Merrill Lynch, Credit Suisse and UBS.

The new credit arrangement replaces an existing undrawn facility of £248m that is due to expire in June 2013. The new facility has a minimum term of five years and an initial margin over LIBOR of 175 basis points. HSBC and Lloyds Banking Group acted as joint co-ordinators. Bank of America Merrill Lynch, HSBC and Lloyds Banking Group acted as mandated lead arrangers and book runners. Credit Suisse and UBS acted as mandated lead arrangers.

Matthew Roberts, finance director of CSC, said: "I am delighted that we have agreed a significantly larger facility with a strong syndicate of banks. At the same time, we have reduced our all-in rate. This is testament to the high quality of CSC's UK regional shopping centre assets and income stream. The new facility provides us with considerable flexibility over the next five years, potentially seven, and underpins our robust financing position."

The new facility will be used to provide general group liquidity.

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