Business
Refinancing on improved terms
Refinancing on improved terms.
About this update from Safestore Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 6103F Safestore Holdings plc 19 May 2017 \n\n19 May 2017\n \nSafestore Holdings plc\n \nRefinancing on improved terms\n \nSafestore Holdings plc (\"the Group\") announces the refinancing of its US Private Placement Notes (\"USPP\") and an amendment and extension of its existing bank facilities to extend the average maturity and lower the cost of the Group's debt financing.\n \nThe key terms of the new and amended arrangements are as follows:\n \nUS Private Placement Notes\n \n· The existing $65.6m 5.83%1 2019 USPP and $47.3m 6.74%1 2024 USPP will be repaid in full\n· New Euro and Sterling denominated USPP will be issued with the following tenor and coupons:\no €50.9m 7 year notes at coupon of 1.59%\no €74.1m 10 year notes at coupon of 2.00%\no £50.5m 12 year notes at coupon of 2.92%\n \nAmendment and Extension of Bank Facilities\n \n· Existing UK and Euro revolving credit facilities are extended by two years from June 2020 to June 2022 with an option (on an uncommitted basis) to extend for a further year with the existing £126m term loan cancelled.\n· The amended facilities will comprise:\no a £190m revolving credit facility of which c.£120m will be drawn.\no a €70m revolving facility of which c.€46m will be drawn.\n· The margin on the amended facilities will be reduced by 25 bps from 150 bps to 125 bps.\n· Similarly, the non-utilisation fee on the undrawn facilities reduces from 0.6% to 0.5%.\n· The Group also has the option (on an uncommitted basis) to increase the quantum of the sterling revolving credit facility by £60m.\n \nThe Group will pay a 'make-whole' payment to existing USPP noteholders of c.£12.5m2 and will also break the Sterling/ Dollar cross-currency swap relating to the existing USPP notes which has a current mark-to-market value of c. £13m3 in favour of the Group.\n \nBased on the current level of borrowings and interest swap rates, and taking into consideration the amortisation of initial fees, the Group's pro forma annual underlying finance charge will, over a full year, reduce by c. £3m4 per an...