JSE-listed Intu Properties has replaced an existing £375-million facility, set to expire in November 2018, with a new corporate £600-million revolving credit facility (RCF).
In an update to shareholders on Friday, the company explained that the new facility had a minimum five-year term to October 2019, with a two-year extension option, subject to conditions and approvals.
Despite the increase in the size of the facility, which would be used to provide general liquidity, the margins and fees were reduced to the point that ongoing costs would be lower than under the previous facility, Intu CFO Matthew Roberts said.
The company reported a margin decrease of 25 to 50 basis points, when compared with the existing facility, and has an initial margin of 140 basis points over the London Interbank Offered Rate.
The Bank of America Merrill Lynch, Credit Suisse, HSBC, Lloyds Banking Group, UBS, Barclays and the Royal Bank of Scotland provided the RCF.