McKay Securities PLC MCKAY AGREES £180M REFINANCING (3519V)
April 08 2019 - 2:00AM
UK Regulatory
TIDMMCKS
RNS Number : 3519V
McKay Securities PLC
08 April 2019
McKAY SECURITIES PLC ("the Group" or "McKay")
McKAY SIGNIFICANTLY INCREASES HEADROOM WITH GBP180M
REFINANCING
McKay Securities PLC, the only UK REIT specialising entirely in
the London and South East office and industrial markets, announces
that it has signed a new secured GBP180 million revolving credit
facility ("RCF") with a maturity of five years, to replace three
current bilateral facilities totaling GBP125 million. The
refinancing has been agreed with a syndicate of lenders consisting
of Lloyds Bank, Barclays, NatWest and Santander banks.
This new refinancing, coupled with a GBP65 million fixed
facility already held with Aviva, increases McKay's total debt
facilities from GBP190 million to GBP245 million. This provides the
Group with GBP80 million of firepower over current drawings to
support operational flexibility, deliver further portfolio
initiatives and give wider scope for new investments.
The Group is currently GBP165 million drawn on its existing
facilities (34% LTV using 30th September 2018 values). With the
benefit of the new facility, the initial weighted average cost of
debt (prior to amortisation of fees) at current rates will be 3.2%,
reducing to 3.0% if fully drawn (weighted average cost of debt for
12 months to 31(st) March 2018: 4.1%).
At current drawings, the Group is 39% fixed or hedged, and the
possibility of additional hedging remains under review.
Simon Perkins, CEO of McKay, commented: "We are pleased to build
on our long-term relationship with our banking group and welcome
back Lloyds into our pool of lenders. This new facility further
strengthens our financial platform and provides us with greater
flexibility to implement our active programme of portfolio
management, refurbishment and development at a highly competitive
cost of debt."
PWC acted as debt advisor to McKay on this transaction.
-Ends-
Date: 8th April 2019
For further information, please contact:
McKay Securities PLC FTI Consulting
Simon Perkins, CEO Dido Laurimore, Ellie Sweeney
Giles Salmon, CFO 0203 727 1000
0118 950 2333 mckay@fticonsulting.com
About McKay Securities
McKay Securities PLC is a commercial property investment company
with Real Estate Investment Trust (REIT) status, listed on the main
market of the London Stock Exchange. It specialises in the
development and refurbishment of good quality office and industrial
building with established and proven markets of London and South
East England. The portfolio, which was last valued at GBP479
million (30(th) September 2018), now comprises 33 properties in
strong and established areas which deliver diversity in terms of
both sector and location.
www.mckaysecurities.plc.uk
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END
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