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DEBT REDUCTION AND REFINANCING UPDATE
DEBT REDUCTION AND REFINANCING UPDATE.
About this update from Supermarket Income Reit Plc
[{"type":"text","content":"\n\n15 September 2023\n \nSUPERMARKET INCOME REIT PLC\n(the \"Company\")\n \nDEBT REDUCTION AND REFINANCING UPDATE\n \nSupermarket Income REIT plc (LSE: SUPR), the real estate investment trust providing secure, inflation-linked, long income from grocery property in the UK, announces the completion of a comprehensive debt refinancing exercise.\n \nDebt refinancing\n \nThe debt refinancing exercise involved the cancellation of two shorter-dated debt facilities, the reduction and extension of an existing debt facility and the completion of a new unsecured debt facility with a new lender.\n \nOverall, the Company has reduced its loan-to-value (\"LTV\") ratio to 34%1 (December 2022: 40%) and the weighted average term of debt is now in excess of four years2. Over 60% of the Company's debt facilities are now unsecured (December 2022: 48%) and the Company has available undrawn committed facilities in excess of £100 million.\n \n· The Company has cancelled two of its shorter-dated debt facilities, including the £77.5 million secured revolving credit facility (\"RCF\") with Barclays and Royal Bank of Canada, and the £62.1 million unsecured debt facility provided by a syndicate of relationship banks\n \n· The existing secured interest-only £150 million RCF with HSBC has been refinanced with a new £50 million, secured, three-year RCF with a £75 million uncommitted accordion option. The new RCF has two one-year extension options and a margin of 170 bps over SONIA\n \n· A new £67 million, unsecured, three-year debt facility has been completed with Sumitomo Mitsui Banking Corporation (\"SMBC\"). The debt facility has two one-year extension options and a margin of 140 bps over SONIA\n \nHedging update\n \nThe Company has also used the value of its existing in-the-money interest rate hedges to extend the term of its hedging arrangements to match the maturity of its debt facilities at no additional cost to the Company. 100% of the Company's drawn debt is now either fixed rate or hedged to a fixed rate, representing a weighted average all-in cost of debt of 3.1%. \n\n \nBen Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT, said: \n \n\"We are very pleased to be w...